2022-001 Calculating Expenses for Family Income Examinations Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA) Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization incorrectly calculated expenses as part of family income examination or reexamination for two tenants based on the requirements of 24 CFR Section 982.516. Condition: During our testing, we noted two tenants where expenses were incorrectly calculated based on supporting documentation. Questioned Costs: $148 Context: From a sample of 40 program participant files selected for testing, 2 tenants had expenses incorrectly calculated. Cause: The Housing Specialist made an error in calculating the expenses for 2 tenants. Effect: Two program participants received an incorrect amount of HAP payments. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure expenses are appropriately calculated in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-002 Supporting Documentation in Tenant Files Repeat of Finding 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Eligibility, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization was missing a HAP contract for the tenant's address/rent that was selected in eligibility testing. Per 24 CFR Section 982.158 and ICS's admin plan, a HAP contract is required. Condition: During our testing, we noted that one file did not have the HAP contract for the correct tenant address for one file. Questioned Costs: None Context: From a sample of 40 program participant files selected for testing, one tenant was missing the appropriate HAP contract. Cause: The Organization did not maintain supporting documentation in the file. The Organization moved to an electronic files system several years ago. Some of the information from the paper file was not scanned and/or verified to be contained in the electronic file. Effect: File did not contain required information per 24 CFR 982.158 and admin plan. A program participant could have been receiving an incorrect amount of HAP. Repeat Finding: Yes. Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-003 Supporting Documentation for Family Size Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status. Condition: During our testing, we noted one file where one of the adults was identified as an eligible non-citizen; however, there was no documentation of eligible non-citizen forms (Form I-551 or I-91) retained in the file. Questioned Costs: $570 Context: From a sample of 40 program participant files selected for testing, one file did not contain the appropriate information to document that one of the adults in the household was an eligible non-citizen. HAP was potentially overpaid. Cause: The Housing Specialist did not obtain the appropriate form to document the non-eligible citizen status and therefore incorrectly calculated the HAP payment. Effect: One program participant received an overpayment of HAP. Repeat Finding: No. Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-004 Housing Assistance Payments Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater Criteria or Specific Requirement: Per 24 CFR Section 982.158, the HAP payment must agree to the HAP contract and HAP register. Condition: During our testing, we noted that the Organization overpaid HAP for one file for part of 2022 due human error in entering a 01/01/2023 HAP increase as of 01/01/2022. The system issued an additional check in 2022 and the Organization was unable to recoup the entire amount. Questioned Costs: $98 Context: From a sample of 40 program participant files selected for testing, 1 tenant had the above issue where HAP was overpaid due to entering the wrong date for an increase. Cause: The Housing Specialist made an error in entering the date of a HAP increase. Effect: One program participant received an overpayment of HAP. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate HAP is paid and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-005 Abatement related to Failed HQS Inspections Repeat of Finding 2021-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests ? HQS Failed Inspections Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per CFR Sections 982.158(d) and 982.404, for units under HAP contract that fail to meet HQS, the Organization must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Condition: During our testing, we noted three tenants who had failed inspections where HAP was not appropriately abated. Questioned Costs: $13,098 Context: From a sample of 40 failed HQS inspections selected for testing, three had issues where HAP was not appropriately abated. One tenant was initially abated but then reinstated a month later without the unit having passed inspection. Two tenants were not appropriately reinspected due to human error and HAP was not abated as required until the inspections passed. Cause: For one tenant, the housing special accidentally reinstated HAP by clicking a box in the system. For two tenants, the inspector did not set up the reinspection dates until after the issues were found as part of compliance testing. Effect: A program participant could receive HAP or the Utility Allowance when they were not qualified due to the unit not passing the HQS inspection. Repeat Finding: Yes. Recommendation: We recommend that Management review their current internal control process over failed HQS inspections and HAP/Utility Allowance abatements to ensure they have a process in place to identify errors before the payments go out. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-001 Calculating Expenses for Family Income Examinations Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA) Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization incorrectly calculated expenses as part of family income examination or reexamination for two tenants based on the requirements of 24 CFR Section 982.516. Condition: During our testing, we noted two tenants where expenses were incorrectly calculated based on supporting documentation. Questioned Costs: $148 Context: From a sample of 40 program participant files selected for testing, 2 tenants had expenses incorrectly calculated. Cause: The Housing Specialist made an error in calculating the expenses for 2 tenants. Effect: Two program participants received an incorrect amount of HAP payments. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure expenses are appropriately calculated in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-002 Supporting Documentation in Tenant Files Repeat of Finding 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Eligibility, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization was missing a HAP contract for the tenant's address/rent that was selected in eligibility testing. Per 24 CFR Section 982.158 and ICS's admin plan, a HAP contract is required. Condition: During our testing, we noted that one file did not have the HAP contract for the correct tenant address for one file. Questioned Costs: None Context: From a sample of 40 program participant files selected for testing, one tenant was missing the appropriate HAP contract. Cause: The Organization did not maintain supporting documentation in the file. The Organization moved to an electronic files system several years ago. Some of the information from the paper file was not scanned and/or verified to be contained in the electronic file. Effect: File did not contain required information per 24 CFR 982.158 and admin plan. A program participant could have been receiving an incorrect amount of HAP. Repeat Finding: Yes. Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-003 Supporting Documentation for Family Size Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status. Condition: During our testing, we noted one file where one of the adults was identified as an eligible non-citizen; however, there was no documentation of eligible non-citizen forms (Form I-551 or I-91) retained in the file. Questioned Costs: $570 Context: From a sample of 40 program participant files selected for testing, one file did not contain the appropriate information to document that one of the adults in the household was an eligible non-citizen. HAP was potentially overpaid. Cause: The Housing Specialist did not obtain the appropriate form to document the non-eligible citizen status and therefore incorrectly calculated the HAP payment. Effect: One program participant received an overpayment of HAP. Repeat Finding: No. Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-004 Housing Assistance Payments Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater Criteria or Specific Requirement: Per 24 CFR Section 982.158, the HAP payment must agree to the HAP contract and HAP register. Condition: During our testing, we noted that the Organization overpaid HAP for one file for part of 2022 due human error in entering a 01/01/2023 HAP increase as of 01/01/2022. The system issued an additional check in 2022 and the Organization was unable to recoup the entire amount. Questioned Costs: $98 Context: From a sample of 40 program participant files selected for testing, 1 tenant had the above issue where HAP was overpaid due to entering the wrong date for an increase. Cause: The Housing Specialist made an error in entering the date of a HAP increase. Effect: One program participant received an overpayment of HAP. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate HAP is paid and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-005 Abatement related to Failed HQS Inspections Repeat of Finding 2021-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests ? HQS Failed Inspections Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per CFR Sections 982.158(d) and 982.404, for units under HAP contract that fail to meet HQS, the Organization must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Condition: During our testing, we noted three tenants who had failed inspections where HAP was not appropriately abated. Questioned Costs: $13,098 Context: From a sample of 40 failed HQS inspections selected for testing, three had issues where HAP was not appropriately abated. One tenant was initially abated but then reinstated a month later without the unit having passed inspection. Two tenants were not appropriately reinspected due to human error and HAP was not abated as required until the inspections passed. Cause: For one tenant, the housing special accidentally reinstated HAP by clicking a box in the system. For two tenants, the inspector did not set up the reinspection dates until after the issues were found as part of compliance testing. Effect: A program participant could receive HAP or the Utility Allowance when they were not qualified due to the unit not passing the HQS inspection. Repeat Finding: Yes. Recommendation: We recommend that Management review their current internal control process over failed HQS inspections and HAP/Utility Allowance abatements to ensure they have a process in place to identify errors before the payments go out. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-001 Calculating Expenses for Family Income Examinations Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA) Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization incorrectly calculated expenses as part of family income examination or reexamination for two tenants based on the requirements of 24 CFR Section 982.516. Condition: During our testing, we noted two tenants where expenses were incorrectly calculated based on supporting documentation. Questioned Costs: $148 Context: From a sample of 40 program participant files selected for testing, 2 tenants had expenses incorrectly calculated. Cause: The Housing Specialist made an error in calculating the expenses for 2 tenants. Effect: Two program participants received an incorrect amount of HAP payments. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure expenses are appropriately calculated in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-002 Supporting Documentation in Tenant Files Repeat of Finding 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Eligibility, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization was missing a HAP contract for the tenant's address/rent that was selected in eligibility testing. Per 24 CFR Section 982.158 and ICS's admin plan, a HAP contract is required. Condition: During our testing, we noted that one file did not have the HAP contract for the correct tenant address for one file. Questioned Costs: None Context: From a sample of 40 program participant files selected for testing, one tenant was missing the appropriate HAP contract. Cause: The Organization did not maintain supporting documentation in the file. The Organization moved to an electronic files system several years ago. Some of the information from the paper file was not scanned and/or verified to be contained in the electronic file. Effect: File did not contain required information per 24 CFR 982.158 and admin plan. A program participant could have been receiving an incorrect amount of HAP. Repeat Finding: Yes. Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-003 Supporting Documentation for Family Size Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status. Condition: During our testing, we noted one file where one of the adults was identified as an eligible non-citizen; however, there was no documentation of eligible non-citizen forms (Form I-551 or I-91) retained in the file. Questioned Costs: $570 Context: From a sample of 40 program participant files selected for testing, one file did not contain the appropriate information to document that one of the adults in the household was an eligible non-citizen. HAP was potentially overpaid. Cause: The Housing Specialist did not obtain the appropriate form to document the non-eligible citizen status and therefore incorrectly calculated the HAP payment. Effect: One program participant received an overpayment of HAP. Repeat Finding: No. Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-004 Housing Assistance Payments Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater Criteria or Specific Requirement: Per 24 CFR Section 982.158, the HAP payment must agree to the HAP contract and HAP register. Condition: During our testing, we noted that the Organization overpaid HAP for one file for part of 2022 due human error in entering a 01/01/2023 HAP increase as of 01/01/2022. The system issued an additional check in 2022 and the Organization was unable to recoup the entire amount. Questioned Costs: $98 Context: From a sample of 40 program participant files selected for testing, 1 tenant had the above issue where HAP was overpaid due to entering the wrong date for an increase. Cause: The Housing Specialist made an error in entering the date of a HAP increase. Effect: One program participant received an overpayment of HAP. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate HAP is paid and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-005 Abatement related to Failed HQS Inspections Repeat of Finding 2021-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests ? HQS Failed Inspections Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per CFR Sections 982.158(d) and 982.404, for units under HAP contract that fail to meet HQS, the Organization must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Condition: During our testing, we noted three tenants who had failed inspections where HAP was not appropriately abated. Questioned Costs: $13,098 Context: From a sample of 40 failed HQS inspections selected for testing, three had issues where HAP was not appropriately abated. One tenant was initially abated but then reinstated a month later without the unit having passed inspection. Two tenants were not appropriately reinspected due to human error and HAP was not abated as required until the inspections passed. Cause: For one tenant, the housing special accidentally reinstated HAP by clicking a box in the system. For two tenants, the inspector did not set up the reinspection dates until after the issues were found as part of compliance testing. Effect: A program participant could receive HAP or the Utility Allowance when they were not qualified due to the unit not passing the HQS inspection. Repeat Finding: Yes. Recommendation: We recommend that Management review their current internal control process over failed HQS inspections and HAP/Utility Allowance abatements to ensure they have a process in place to identify errors before the payments go out. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-001 Calculating Expenses for Family Income Examinations Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA) Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization incorrectly calculated expenses as part of family income examination or reexamination for two tenants based on the requirements of 24 CFR Section 982.516. Condition: During our testing, we noted two tenants where expenses were incorrectly calculated based on supporting documentation. Questioned Costs: $148 Context: From a sample of 40 program participant files selected for testing, 2 tenants had expenses incorrectly calculated. Cause: The Housing Specialist made an error in calculating the expenses for 2 tenants. Effect: Two program participants received an incorrect amount of HAP payments. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure expenses are appropriately calculated in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-002 Supporting Documentation in Tenant Files Repeat of Finding 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Eligibility, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization was missing a HAP contract for the tenant's address/rent that was selected in eligibility testing. Per 24 CFR Section 982.158 and ICS's admin plan, a HAP contract is required. Condition: During our testing, we noted that one file did not have the HAP contract for the correct tenant address for one file. Questioned Costs: None Context: From a sample of 40 program participant files selected for testing, one tenant was missing the appropriate HAP contract. Cause: The Organization did not maintain supporting documentation in the file. The Organization moved to an electronic files system several years ago. Some of the information from the paper file was not scanned and/or verified to be contained in the electronic file. Effect: File did not contain required information per 24 CFR 982.158 and admin plan. A program participant could have been receiving an incorrect amount of HAP. Repeat Finding: Yes. Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-003 Supporting Documentation for Family Size Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status. Condition: During our testing, we noted one file where one of the adults was identified as an eligible non-citizen; however, there was no documentation of eligible non-citizen forms (Form I-551 or I-91) retained in the file. Questioned Costs: $570 Context: From a sample of 40 program participant files selected for testing, one file did not contain the appropriate information to document that one of the adults in the household was an eligible non-citizen. HAP was potentially overpaid. Cause: The Housing Specialist did not obtain the appropriate form to document the non-eligible citizen status and therefore incorrectly calculated the HAP payment. Effect: One program participant received an overpayment of HAP. Repeat Finding: No. Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-004 Housing Assistance Payments Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater Criteria or Specific Requirement: Per 24 CFR Section 982.158, the HAP payment must agree to the HAP contract and HAP register. Condition: During our testing, we noted that the Organization overpaid HAP for one file for part of 2022 due human error in entering a 01/01/2023 HAP increase as of 01/01/2022. The system issued an additional check in 2022 and the Organization was unable to recoup the entire amount. Questioned Costs: $98 Context: From a sample of 40 program participant files selected for testing, 1 tenant had the above issue where HAP was overpaid due to entering the wrong date for an increase. Cause: The Housing Specialist made an error in entering the date of a HAP increase. Effect: One program participant received an overpayment of HAP. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate HAP is paid and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-005 Abatement related to Failed HQS Inspections Repeat of Finding 2021-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests ? HQS Failed Inspections Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per CFR Sections 982.158(d) and 982.404, for units under HAP contract that fail to meet HQS, the Organization must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Condition: During our testing, we noted three tenants who had failed inspections where HAP was not appropriately abated. Questioned Costs: $13,098 Context: From a sample of 40 failed HQS inspections selected for testing, three had issues where HAP was not appropriately abated. One tenant was initially abated but then reinstated a month later without the unit having passed inspection. Two tenants were not appropriately reinspected due to human error and HAP was not abated as required until the inspections passed. Cause: For one tenant, the housing special accidentally reinstated HAP by clicking a box in the system. For two tenants, the inspector did not set up the reinspection dates until after the issues were found as part of compliance testing. Effect: A program participant could receive HAP or the Utility Allowance when they were not qualified due to the unit not passing the HQS inspection. Repeat Finding: Yes. Recommendation: We recommend that Management review their current internal control process over failed HQS inspections and HAP/Utility Allowance abatements to ensure they have a process in place to identify errors before the payments go out. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-001 Calculating Expenses for Family Income Examinations Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA) Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization incorrectly calculated expenses as part of family income examination or reexamination for two tenants based on the requirements of 24 CFR Section 982.516. Condition: During our testing, we noted two tenants where expenses were incorrectly calculated based on supporting documentation. Questioned Costs: $148 Context: From a sample of 40 program participant files selected for testing, 2 tenants had expenses incorrectly calculated. Cause: The Housing Specialist made an error in calculating the expenses for 2 tenants. Effect: Two program participants received an incorrect amount of HAP payments. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure expenses are appropriately calculated in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-002 Supporting Documentation in Tenant Files Repeat of Finding 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Eligibility, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization was missing a HAP contract for the tenant's address/rent that was selected in eligibility testing. Per 24 CFR Section 982.158 and ICS's admin plan, a HAP contract is required. Condition: During our testing, we noted that one file did not have the HAP contract for the correct tenant address for one file. Questioned Costs: None Context: From a sample of 40 program participant files selected for testing, one tenant was missing the appropriate HAP contract. Cause: The Organization did not maintain supporting documentation in the file. The Organization moved to an electronic files system several years ago. Some of the information from the paper file was not scanned and/or verified to be contained in the electronic file. Effect: File did not contain required information per 24 CFR 982.158 and admin plan. A program participant could have been receiving an incorrect amount of HAP. Repeat Finding: Yes. Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-003 Supporting Documentation for Family Size Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status. Condition: During our testing, we noted one file where one of the adults was identified as an eligible non-citizen; however, there was no documentation of eligible non-citizen forms (Form I-551 or I-91) retained in the file. Questioned Costs: $570 Context: From a sample of 40 program participant files selected for testing, one file did not contain the appropriate information to document that one of the adults in the household was an eligible non-citizen. HAP was potentially overpaid. Cause: The Housing Specialist did not obtain the appropriate form to document the non-eligible citizen status and therefore incorrectly calculated the HAP payment. Effect: One program participant received an overpayment of HAP. Repeat Finding: No. Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-004 Housing Assistance Payments Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater Criteria or Specific Requirement: Per 24 CFR Section 982.158, the HAP payment must agree to the HAP contract and HAP register. Condition: During our testing, we noted that the Organization overpaid HAP for one file for part of 2022 due human error in entering a 01/01/2023 HAP increase as of 01/01/2022. The system issued an additional check in 2022 and the Organization was unable to recoup the entire amount. Questioned Costs: $98 Context: From a sample of 40 program participant files selected for testing, 1 tenant had the above issue where HAP was overpaid due to entering the wrong date for an increase. Cause: The Housing Specialist made an error in entering the date of a HAP increase. Effect: One program participant received an overpayment of HAP. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate HAP is paid and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-005 Abatement related to Failed HQS Inspections Repeat of Finding 2021-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests ? HQS Failed Inspections Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per CFR Sections 982.158(d) and 982.404, for units under HAP contract that fail to meet HQS, the Organization must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Condition: During our testing, we noted three tenants who had failed inspections where HAP was not appropriately abated. Questioned Costs: $13,098 Context: From a sample of 40 failed HQS inspections selected for testing, three had issues where HAP was not appropriately abated. One tenant was initially abated but then reinstated a month later without the unit having passed inspection. Two tenants were not appropriately reinspected due to human error and HAP was not abated as required until the inspections passed. Cause: For one tenant, the housing special accidentally reinstated HAP by clicking a box in the system. For two tenants, the inspector did not set up the reinspection dates until after the issues were found as part of compliance testing. Effect: A program participant could receive HAP or the Utility Allowance when they were not qualified due to the unit not passing the HQS inspection. Repeat Finding: Yes. Recommendation: We recommend that Management review their current internal control process over failed HQS inspections and HAP/Utility Allowance abatements to ensure they have a process in place to identify errors before the payments go out. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-001 Calculating Expenses for Family Income Examinations Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA) Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization incorrectly calculated expenses as part of family income examination or reexamination for two tenants based on the requirements of 24 CFR Section 982.516. Condition: During our testing, we noted two tenants where expenses were incorrectly calculated based on supporting documentation. Questioned Costs: $148 Context: From a sample of 40 program participant files selected for testing, 2 tenants had expenses incorrectly calculated. Cause: The Housing Specialist made an error in calculating the expenses for 2 tenants. Effect: Two program participants received an incorrect amount of HAP payments. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure expenses are appropriately calculated in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-002 Supporting Documentation in Tenant Files Repeat of Finding 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Eligibility, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization was missing a HAP contract for the tenant's address/rent that was selected in eligibility testing. Per 24 CFR Section 982.158 and ICS's admin plan, a HAP contract is required. Condition: During our testing, we noted that one file did not have the HAP contract for the correct tenant address for one file. Questioned Costs: None Context: From a sample of 40 program participant files selected for testing, one tenant was missing the appropriate HAP contract. Cause: The Organization did not maintain supporting documentation in the file. The Organization moved to an electronic files system several years ago. Some of the information from the paper file was not scanned and/or verified to be contained in the electronic file. Effect: File did not contain required information per 24 CFR 982.158 and admin plan. A program participant could have been receiving an incorrect amount of HAP. Repeat Finding: Yes. Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-003 Supporting Documentation for Family Size Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status. Condition: During our testing, we noted one file where one of the adults was identified as an eligible non-citizen; however, there was no documentation of eligible non-citizen forms (Form I-551 or I-91) retained in the file. Questioned Costs: $570 Context: From a sample of 40 program participant files selected for testing, one file did not contain the appropriate information to document that one of the adults in the household was an eligible non-citizen. HAP was potentially overpaid. Cause: The Housing Specialist did not obtain the appropriate form to document the non-eligible citizen status and therefore incorrectly calculated the HAP payment. Effect: One program participant received an overpayment of HAP. Repeat Finding: No. Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-004 Housing Assistance Payments Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater Criteria or Specific Requirement: Per 24 CFR Section 982.158, the HAP payment must agree to the HAP contract and HAP register. Condition: During our testing, we noted that the Organization overpaid HAP for one file for part of 2022 due human error in entering a 01/01/2023 HAP increase as of 01/01/2022. The system issued an additional check in 2022 and the Organization was unable to recoup the entire amount. Questioned Costs: $98 Context: From a sample of 40 program participant files selected for testing, 1 tenant had the above issue where HAP was overpaid due to entering the wrong date for an increase. Cause: The Housing Specialist made an error in entering the date of a HAP increase. Effect: One program participant received an overpayment of HAP. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate HAP is paid and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-005 Abatement related to Failed HQS Inspections Repeat of Finding 2021-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests ? HQS Failed Inspections Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per CFR Sections 982.158(d) and 982.404, for units under HAP contract that fail to meet HQS, the Organization must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Condition: During our testing, we noted three tenants who had failed inspections where HAP was not appropriately abated. Questioned Costs: $13,098 Context: From a sample of 40 failed HQS inspections selected for testing, three had issues where HAP was not appropriately abated. One tenant was initially abated but then reinstated a month later without the unit having passed inspection. Two tenants were not appropriately reinspected due to human error and HAP was not abated as required until the inspections passed. Cause: For one tenant, the housing special accidentally reinstated HAP by clicking a box in the system. For two tenants, the inspector did not set up the reinspection dates until after the issues were found as part of compliance testing. Effect: A program participant could receive HAP or the Utility Allowance when they were not qualified due to the unit not passing the HQS inspection. Repeat Finding: Yes. Recommendation: We recommend that Management review their current internal control process over failed HQS inspections and HAP/Utility Allowance abatements to ensure they have a process in place to identify errors before the payments go out. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-001 Calculating Expenses for Family Income Examinations Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA) Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization incorrectly calculated expenses as part of family income examination or reexamination for two tenants based on the requirements of 24 CFR Section 982.516. Condition: During our testing, we noted two tenants where expenses were incorrectly calculated based on supporting documentation. Questioned Costs: $148 Context: From a sample of 40 program participant files selected for testing, 2 tenants had expenses incorrectly calculated. Cause: The Housing Specialist made an error in calculating the expenses for 2 tenants. Effect: Two program participants received an incorrect amount of HAP payments. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure expenses are appropriately calculated in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-002 Supporting Documentation in Tenant Files Repeat of Finding 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Eligibility, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization was missing a HAP contract for the tenant's address/rent that was selected in eligibility testing. Per 24 CFR Section 982.158 and ICS's admin plan, a HAP contract is required. Condition: During our testing, we noted that one file did not have the HAP contract for the correct tenant address for one file. Questioned Costs: None Context: From a sample of 40 program participant files selected for testing, one tenant was missing the appropriate HAP contract. Cause: The Organization did not maintain supporting documentation in the file. The Organization moved to an electronic files system several years ago. Some of the information from the paper file was not scanned and/or verified to be contained in the electronic file. Effect: File did not contain required information per 24 CFR 982.158 and admin plan. A program participant could have been receiving an incorrect amount of HAP. Repeat Finding: Yes. Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-003 Supporting Documentation for Family Size Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status. Condition: During our testing, we noted one file where one of the adults was identified as an eligible non-citizen; however, there was no documentation of eligible non-citizen forms (Form I-551 or I-91) retained in the file. Questioned Costs: $570 Context: From a sample of 40 program participant files selected for testing, one file did not contain the appropriate information to document that one of the adults in the household was an eligible non-citizen. HAP was potentially overpaid. Cause: The Housing Specialist did not obtain the appropriate form to document the non-eligible citizen status and therefore incorrectly calculated the HAP payment. Effect: One program participant received an overpayment of HAP. Repeat Finding: No. Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-004 Housing Assistance Payments Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater Criteria or Specific Requirement: Per 24 CFR Section 982.158, the HAP payment must agree to the HAP contract and HAP register. Condition: During our testing, we noted that the Organization overpaid HAP for one file for part of 2022 due human error in entering a 01/01/2023 HAP increase as of 01/01/2022. The system issued an additional check in 2022 and the Organization was unable to recoup the entire amount. Questioned Costs: $98 Context: From a sample of 40 program participant files selected for testing, 1 tenant had the above issue where HAP was overpaid due to entering the wrong date for an increase. Cause: The Housing Specialist made an error in entering the date of a HAP increase. Effect: One program participant received an overpayment of HAP. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate HAP is paid and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-005 Abatement related to Failed HQS Inspections Repeat of Finding 2021-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests ? HQS Failed Inspections Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per CFR Sections 982.158(d) and 982.404, for units under HAP contract that fail to meet HQS, the Organization must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Condition: During our testing, we noted three tenants who had failed inspections where HAP was not appropriately abated. Questioned Costs: $13,098 Context: From a sample of 40 failed HQS inspections selected for testing, three had issues where HAP was not appropriately abated. One tenant was initially abated but then reinstated a month later without the unit having passed inspection. Two tenants were not appropriately reinspected due to human error and HAP was not abated as required until the inspections passed. Cause: For one tenant, the housing special accidentally reinstated HAP by clicking a box in the system. For two tenants, the inspector did not set up the reinspection dates until after the issues were found as part of compliance testing. Effect: A program participant could receive HAP or the Utility Allowance when they were not qualified due to the unit not passing the HQS inspection. Repeat Finding: Yes. Recommendation: We recommend that Management review their current internal control process over failed HQS inspections and HAP/Utility Allowance abatements to ensure they have a process in place to identify errors before the payments go out. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-001 Calculating Expenses for Family Income Examinations Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA) Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization incorrectly calculated expenses as part of family income examination or reexamination for two tenants based on the requirements of 24 CFR Section 982.516. Condition: During our testing, we noted two tenants where expenses were incorrectly calculated based on supporting documentation. Questioned Costs: $148 Context: From a sample of 40 program participant files selected for testing, 2 tenants had expenses incorrectly calculated. Cause: The Housing Specialist made an error in calculating the expenses for 2 tenants. Effect: Two program participants received an incorrect amount of HAP payments. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure expenses are appropriately calculated in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-002 Supporting Documentation in Tenant Files Repeat of Finding 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Eligibility, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization was missing a HAP contract for the tenant's address/rent that was selected in eligibility testing. Per 24 CFR Section 982.158 and ICS's admin plan, a HAP contract is required. Condition: During our testing, we noted that one file did not have the HAP contract for the correct tenant address for one file. Questioned Costs: None Context: From a sample of 40 program participant files selected for testing, one tenant was missing the appropriate HAP contract. Cause: The Organization did not maintain supporting documentation in the file. The Organization moved to an electronic files system several years ago. Some of the information from the paper file was not scanned and/or verified to be contained in the electronic file. Effect: File did not contain required information per 24 CFR 982.158 and admin plan. A program participant could have been receiving an incorrect amount of HAP. Repeat Finding: Yes. Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-003 Supporting Documentation for Family Size Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status. Condition: During our testing, we noted one file where one of the adults was identified as an eligible non-citizen; however, there was no documentation of eligible non-citizen forms (Form I-551 or I-91) retained in the file. Questioned Costs: $570 Context: From a sample of 40 program participant files selected for testing, one file did not contain the appropriate information to document that one of the adults in the household was an eligible non-citizen. HAP was potentially overpaid. Cause: The Housing Specialist did not obtain the appropriate form to document the non-eligible citizen status and therefore incorrectly calculated the HAP payment. Effect: One program participant received an overpayment of HAP. Repeat Finding: No. Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-004 Housing Assistance Payments Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater Criteria or Specific Requirement: Per 24 CFR Section 982.158, the HAP payment must agree to the HAP contract and HAP register. Condition: During our testing, we noted that the Organization overpaid HAP for one file for part of 2022 due human error in entering a 01/01/2023 HAP increase as of 01/01/2022. The system issued an additional check in 2022 and the Organization was unable to recoup the entire amount. Questioned Costs: $98 Context: From a sample of 40 program participant files selected for testing, 1 tenant had the above issue where HAP was overpaid due to entering the wrong date for an increase. Cause: The Housing Specialist made an error in entering the date of a HAP increase. Effect: One program participant received an overpayment of HAP. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate HAP is paid and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-005 Abatement related to Failed HQS Inspections Repeat of Finding 2021-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests ? HQS Failed Inspections Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per CFR Sections 982.158(d) and 982.404, for units under HAP contract that fail to meet HQS, the Organization must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Condition: During our testing, we noted three tenants who had failed inspections where HAP was not appropriately abated. Questioned Costs: $13,098 Context: From a sample of 40 failed HQS inspections selected for testing, three had issues where HAP was not appropriately abated. One tenant was initially abated but then reinstated a month later without the unit having passed inspection. Two tenants were not appropriately reinspected due to human error and HAP was not abated as required until the inspections passed. Cause: For one tenant, the housing special accidentally reinstated HAP by clicking a box in the system. For two tenants, the inspector did not set up the reinspection dates until after the issues were found as part of compliance testing. Effect: A program participant could receive HAP or the Utility Allowance when they were not qualified due to the unit not passing the HQS inspection. Repeat Finding: Yes. Recommendation: We recommend that Management review their current internal control process over failed HQS inspections and HAP/Utility Allowance abatements to ensure they have a process in place to identify errors before the payments go out. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-001 Calculating Expenses for Family Income Examinations Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA) Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization incorrectly calculated expenses as part of family income examination or reexamination for two tenants based on the requirements of 24 CFR Section 982.516. Condition: During our testing, we noted two tenants where expenses were incorrectly calculated based on supporting documentation. Questioned Costs: $148 Context: From a sample of 40 program participant files selected for testing, 2 tenants had expenses incorrectly calculated. Cause: The Housing Specialist made an error in calculating the expenses for 2 tenants. Effect: Two program participants received an incorrect amount of HAP payments. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure expenses are appropriately calculated in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-002 Supporting Documentation in Tenant Files Repeat of Finding 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Eligibility, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization was missing a HAP contract for the tenant's address/rent that was selected in eligibility testing. Per 24 CFR Section 982.158 and ICS's admin plan, a HAP contract is required. Condition: During our testing, we noted that one file did not have the HAP contract for the correct tenant address for one file. Questioned Costs: None Context: From a sample of 40 program participant files selected for testing, one tenant was missing the appropriate HAP contract. Cause: The Organization did not maintain supporting documentation in the file. The Organization moved to an electronic files system several years ago. Some of the information from the paper file was not scanned and/or verified to be contained in the electronic file. Effect: File did not contain required information per 24 CFR 982.158 and admin plan. A program participant could have been receiving an incorrect amount of HAP. Repeat Finding: Yes. Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-003 Supporting Documentation for Family Size Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status. Condition: During our testing, we noted one file where one of the adults was identified as an eligible non-citizen; however, there was no documentation of eligible non-citizen forms (Form I-551 or I-91) retained in the file. Questioned Costs: $570 Context: From a sample of 40 program participant files selected for testing, one file did not contain the appropriate information to document that one of the adults in the household was an eligible non-citizen. HAP was potentially overpaid. Cause: The Housing Specialist did not obtain the appropriate form to document the non-eligible citizen status and therefore incorrectly calculated the HAP payment. Effect: One program participant received an overpayment of HAP. Repeat Finding: No. Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-004 Housing Assistance Payments Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater Criteria or Specific Requirement: Per 24 CFR Section 982.158, the HAP payment must agree to the HAP contract and HAP register. Condition: During our testing, we noted that the Organization overpaid HAP for one file for part of 2022 due human error in entering a 01/01/2023 HAP increase as of 01/01/2022. The system issued an additional check in 2022 and the Organization was unable to recoup the entire amount. Questioned Costs: $98 Context: From a sample of 40 program participant files selected for testing, 1 tenant had the above issue where HAP was overpaid due to entering the wrong date for an increase. Cause: The Housing Specialist made an error in entering the date of a HAP increase. Effect: One program participant received an overpayment of HAP. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate HAP is paid and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-005 Abatement related to Failed HQS Inspections Repeat of Finding 2021-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests ? HQS Failed Inspections Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per CFR Sections 982.158(d) and 982.404, for units under HAP contract that fail to meet HQS, the Organization must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Condition: During our testing, we noted three tenants who had failed inspections where HAP was not appropriately abated. Questioned Costs: $13,098 Context: From a sample of 40 failed HQS inspections selected for testing, three had issues where HAP was not appropriately abated. One tenant was initially abated but then reinstated a month later without the unit having passed inspection. Two tenants were not appropriately reinspected due to human error and HAP was not abated as required until the inspections passed. Cause: For one tenant, the housing special accidentally reinstated HAP by clicking a box in the system. For two tenants, the inspector did not set up the reinspection dates until after the issues were found as part of compliance testing. Effect: A program participant could receive HAP or the Utility Allowance when they were not qualified due to the unit not passing the HQS inspection. Repeat Finding: Yes. Recommendation: We recommend that Management review their current internal control process over failed HQS inspections and HAP/Utility Allowance abatements to ensure they have a process in place to identify errors before the payments go out. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-001 Calculating Expenses for Family Income Examinations Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA) Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization incorrectly calculated expenses as part of family income examination or reexamination for two tenants based on the requirements of 24 CFR Section 982.516. Condition: During our testing, we noted two tenants where expenses were incorrectly calculated based on supporting documentation. Questioned Costs: $148 Context: From a sample of 40 program participant files selected for testing, 2 tenants had expenses incorrectly calculated. Cause: The Housing Specialist made an error in calculating the expenses for 2 tenants. Effect: Two program participants received an incorrect amount of HAP payments. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure expenses are appropriately calculated in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-002 Supporting Documentation in Tenant Files Repeat of Finding 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Eligibility, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization was missing a HAP contract for the tenant's address/rent that was selected in eligibility testing. Per 24 CFR Section 982.158 and ICS's admin plan, a HAP contract is required. Condition: During our testing, we noted that one file did not have the HAP contract for the correct tenant address for one file. Questioned Costs: None Context: From a sample of 40 program participant files selected for testing, one tenant was missing the appropriate HAP contract. Cause: The Organization did not maintain supporting documentation in the file. The Organization moved to an electronic files system several years ago. Some of the information from the paper file was not scanned and/or verified to be contained in the electronic file. Effect: File did not contain required information per 24 CFR 982.158 and admin plan. A program participant could have been receiving an incorrect amount of HAP. Repeat Finding: Yes. Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-003 Supporting Documentation for Family Size Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status. Condition: During our testing, we noted one file where one of the adults was identified as an eligible non-citizen; however, there was no documentation of eligible non-citizen forms (Form I-551 or I-91) retained in the file. Questioned Costs: $570 Context: From a sample of 40 program participant files selected for testing, one file did not contain the appropriate information to document that one of the adults in the household was an eligible non-citizen. HAP was potentially overpaid. Cause: The Housing Specialist did not obtain the appropriate form to document the non-eligible citizen status and therefore incorrectly calculated the HAP payment. Effect: One program participant received an overpayment of HAP. Repeat Finding: No. Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-004 Housing Assistance Payments Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater Criteria or Specific Requirement: Per 24 CFR Section 982.158, the HAP payment must agree to the HAP contract and HAP register. Condition: During our testing, we noted that the Organization overpaid HAP for one file for part of 2022 due human error in entering a 01/01/2023 HAP increase as of 01/01/2022. The system issued an additional check in 2022 and the Organization was unable to recoup the entire amount. Questioned Costs: $98 Context: From a sample of 40 program participant files selected for testing, 1 tenant had the above issue where HAP was overpaid due to entering the wrong date for an increase. Cause: The Housing Specialist made an error in entering the date of a HAP increase. Effect: One program participant received an overpayment of HAP. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate HAP is paid and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-005 Abatement related to Failed HQS Inspections Repeat of Finding 2021-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests ? HQS Failed Inspections Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per CFR Sections 982.158(d) and 982.404, for units under HAP contract that fail to meet HQS, the Organization must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Condition: During our testing, we noted three tenants who had failed inspections where HAP was not appropriately abated. Questioned Costs: $13,098 Context: From a sample of 40 failed HQS inspections selected for testing, three had issues where HAP was not appropriately abated. One tenant was initially abated but then reinstated a month later without the unit having passed inspection. Two tenants were not appropriately reinspected due to human error and HAP was not abated as required until the inspections passed. Cause: For one tenant, the housing special accidentally reinstated HAP by clicking a box in the system. For two tenants, the inspector did not set up the reinspection dates until after the issues were found as part of compliance testing. Effect: A program participant could receive HAP or the Utility Allowance when they were not qualified due to the unit not passing the HQS inspection. Repeat Finding: Yes. Recommendation: We recommend that Management review their current internal control process over failed HQS inspections and HAP/Utility Allowance abatements to ensure they have a process in place to identify errors before the payments go out. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-001 Calculating Expenses for Family Income Examinations Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA) Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization incorrectly calculated expenses as part of family income examination or reexamination for two tenants based on the requirements of 24 CFR Section 982.516. Condition: During our testing, we noted two tenants where expenses were incorrectly calculated based on supporting documentation. Questioned Costs: $148 Context: From a sample of 40 program participant files selected for testing, 2 tenants had expenses incorrectly calculated. Cause: The Housing Specialist made an error in calculating the expenses for 2 tenants. Effect: Two program participants received an incorrect amount of HAP payments. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure expenses are appropriately calculated in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-002 Supporting Documentation in Tenant Files Repeat of Finding 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Eligibility, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization was missing a HAP contract for the tenant's address/rent that was selected in eligibility testing. Per 24 CFR Section 982.158 and ICS's admin plan, a HAP contract is required. Condition: During our testing, we noted that one file did not have the HAP contract for the correct tenant address for one file. Questioned Costs: None Context: From a sample of 40 program participant files selected for testing, one tenant was missing the appropriate HAP contract. Cause: The Organization did not maintain supporting documentation in the file. The Organization moved to an electronic files system several years ago. Some of the information from the paper file was not scanned and/or verified to be contained in the electronic file. Effect: File did not contain required information per 24 CFR 982.158 and admin plan. A program participant could have been receiving an incorrect amount of HAP. Repeat Finding: Yes. Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-003 Supporting Documentation for Family Size Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status. Condition: During our testing, we noted one file where one of the adults was identified as an eligible non-citizen; however, there was no documentation of eligible non-citizen forms (Form I-551 or I-91) retained in the file. Questioned Costs: $570 Context: From a sample of 40 program participant files selected for testing, one file did not contain the appropriate information to document that one of the adults in the household was an eligible non-citizen. HAP was potentially overpaid. Cause: The Housing Specialist did not obtain the appropriate form to document the non-eligible citizen status and therefore incorrectly calculated the HAP payment. Effect: One program participant received an overpayment of HAP. Repeat Finding: No. Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-004 Housing Assistance Payments Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater Criteria or Specific Requirement: Per 24 CFR Section 982.158, the HAP payment must agree to the HAP contract and HAP register. Condition: During our testing, we noted that the Organization overpaid HAP for one file for part of 2022 due human error in entering a 01/01/2023 HAP increase as of 01/01/2022. The system issued an additional check in 2022 and the Organization was unable to recoup the entire amount. Questioned Costs: $98 Context: From a sample of 40 program participant files selected for testing, 1 tenant had the above issue where HAP was overpaid due to entering the wrong date for an increase. Cause: The Housing Specialist made an error in entering the date of a HAP increase. Effect: One program participant received an overpayment of HAP. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate HAP is paid and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-005 Abatement related to Failed HQS Inspections Repeat of Finding 2021-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests ? HQS Failed Inspections Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per CFR Sections 982.158(d) and 982.404, for units under HAP contract that fail to meet HQS, the Organization must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Condition: During our testing, we noted three tenants who had failed inspections where HAP was not appropriately abated. Questioned Costs: $13,098 Context: From a sample of 40 failed HQS inspections selected for testing, three had issues where HAP was not appropriately abated. One tenant was initially abated but then reinstated a month later without the unit having passed inspection. Two tenants were not appropriately reinspected due to human error and HAP was not abated as required until the inspections passed. Cause: For one tenant, the housing special accidentally reinstated HAP by clicking a box in the system. For two tenants, the inspector did not set up the reinspection dates until after the issues were found as part of compliance testing. Effect: A program participant could receive HAP or the Utility Allowance when they were not qualified due to the unit not passing the HQS inspection. Repeat Finding: Yes. Recommendation: We recommend that Management review their current internal control process over failed HQS inspections and HAP/Utility Allowance abatements to ensure they have a process in place to identify errors before the payments go out. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-001 Calculating Expenses for Family Income Examinations Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA) Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization incorrectly calculated expenses as part of family income examination or reexamination for two tenants based on the requirements of 24 CFR Section 982.516. Condition: During our testing, we noted two tenants where expenses were incorrectly calculated based on supporting documentation. Questioned Costs: $148 Context: From a sample of 40 program participant files selected for testing, 2 tenants had expenses incorrectly calculated. Cause: The Housing Specialist made an error in calculating the expenses for 2 tenants. Effect: Two program participants received an incorrect amount of HAP payments. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure expenses are appropriately calculated in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-002 Supporting Documentation in Tenant Files Repeat of Finding 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Eligibility, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization was missing a HAP contract for the tenant's address/rent that was selected in eligibility testing. Per 24 CFR Section 982.158 and ICS's admin plan, a HAP contract is required. Condition: During our testing, we noted that one file did not have the HAP contract for the correct tenant address for one file. Questioned Costs: None Context: From a sample of 40 program participant files selected for testing, one tenant was missing the appropriate HAP contract. Cause: The Organization did not maintain supporting documentation in the file. The Organization moved to an electronic files system several years ago. Some of the information from the paper file was not scanned and/or verified to be contained in the electronic file. Effect: File did not contain required information per 24 CFR 982.158 and admin plan. A program participant could have been receiving an incorrect amount of HAP. Repeat Finding: Yes. Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-003 Supporting Documentation for Family Size Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status. Condition: During our testing, we noted one file where one of the adults was identified as an eligible non-citizen; however, there was no documentation of eligible non-citizen forms (Form I-551 or I-91) retained in the file. Questioned Costs: $570 Context: From a sample of 40 program participant files selected for testing, one file did not contain the appropriate information to document that one of the adults in the household was an eligible non-citizen. HAP was potentially overpaid. Cause: The Housing Specialist did not obtain the appropriate form to document the non-eligible citizen status and therefore incorrectly calculated the HAP payment. Effect: One program participant received an overpayment of HAP. Repeat Finding: No. Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-004 Housing Assistance Payments Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater Criteria or Specific Requirement: Per 24 CFR Section 982.158, the HAP payment must agree to the HAP contract and HAP register. Condition: During our testing, we noted that the Organization overpaid HAP for one file for part of 2022 due human error in entering a 01/01/2023 HAP increase as of 01/01/2022. The system issued an additional check in 2022 and the Organization was unable to recoup the entire amount. Questioned Costs: $98 Context: From a sample of 40 program participant files selected for testing, 1 tenant had the above issue where HAP was overpaid due to entering the wrong date for an increase. Cause: The Housing Specialist made an error in entering the date of a HAP increase. Effect: One program participant received an overpayment of HAP. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate HAP is paid and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-005 Abatement related to Failed HQS Inspections Repeat of Finding 2021-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests ? HQS Failed Inspections Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per CFR Sections 982.158(d) and 982.404, for units under HAP contract that fail to meet HQS, the Organization must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Condition: During our testing, we noted three tenants who had failed inspections where HAP was not appropriately abated. Questioned Costs: $13,098 Context: From a sample of 40 failed HQS inspections selected for testing, three had issues where HAP was not appropriately abated. One tenant was initially abated but then reinstated a month later without the unit having passed inspection. Two tenants were not appropriately reinspected due to human error and HAP was not abated as required until the inspections passed. Cause: For one tenant, the housing special accidentally reinstated HAP by clicking a box in the system. For two tenants, the inspector did not set up the reinspection dates until after the issues were found as part of compliance testing. Effect: A program participant could receive HAP or the Utility Allowance when they were not qualified due to the unit not passing the HQS inspection. Repeat Finding: Yes. Recommendation: We recommend that Management review their current internal control process over failed HQS inspections and HAP/Utility Allowance abatements to ensure they have a process in place to identify errors before the payments go out. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-001 Calculating Expenses for Family Income Examinations Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA) Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization incorrectly calculated expenses as part of family income examination or reexamination for two tenants based on the requirements of 24 CFR Section 982.516. Condition: During our testing, we noted two tenants where expenses were incorrectly calculated based on supporting documentation. Questioned Costs: $148 Context: From a sample of 40 program participant files selected for testing, 2 tenants had expenses incorrectly calculated. Cause: The Housing Specialist made an error in calculating the expenses for 2 tenants. Effect: Two program participants received an incorrect amount of HAP payments. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure expenses are appropriately calculated in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-002 Supporting Documentation in Tenant Files Repeat of Finding 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Eligibility, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization was missing a HAP contract for the tenant's address/rent that was selected in eligibility testing. Per 24 CFR Section 982.158 and ICS's admin plan, a HAP contract is required. Condition: During our testing, we noted that one file did not have the HAP contract for the correct tenant address for one file. Questioned Costs: None Context: From a sample of 40 program participant files selected for testing, one tenant was missing the appropriate HAP contract. Cause: The Organization did not maintain supporting documentation in the file. The Organization moved to an electronic files system several years ago. Some of the information from the paper file was not scanned and/or verified to be contained in the electronic file. Effect: File did not contain required information per 24 CFR 982.158 and admin plan. A program participant could have been receiving an incorrect amount of HAP. Repeat Finding: Yes. Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-003 Supporting Documentation for Family Size Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status. Condition: During our testing, we noted one file where one of the adults was identified as an eligible non-citizen; however, there was no documentation of eligible non-citizen forms (Form I-551 or I-91) retained in the file. Questioned Costs: $570 Context: From a sample of 40 program participant files selected for testing, one file did not contain the appropriate information to document that one of the adults in the household was an eligible non-citizen. HAP was potentially overpaid. Cause: The Housing Specialist did not obtain the appropriate form to document the non-eligible citizen status and therefore incorrectly calculated the HAP payment. Effect: One program participant received an overpayment of HAP. Repeat Finding: No. Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-004 Housing Assistance Payments Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater Criteria or Specific Requirement: Per 24 CFR Section 982.158, the HAP payment must agree to the HAP contract and HAP register. Condition: During our testing, we noted that the Organization overpaid HAP for one file for part of 2022 due human error in entering a 01/01/2023 HAP increase as of 01/01/2022. The system issued an additional check in 2022 and the Organization was unable to recoup the entire amount. Questioned Costs: $98 Context: From a sample of 40 program participant files selected for testing, 1 tenant had the above issue where HAP was overpaid due to entering the wrong date for an increase. Cause: The Housing Specialist made an error in entering the date of a HAP increase. Effect: One program participant received an overpayment of HAP. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate HAP is paid and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-005 Abatement related to Failed HQS Inspections Repeat of Finding 2021-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests ? HQS Failed Inspections Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per CFR Sections 982.158(d) and 982.404, for units under HAP contract that fail to meet HQS, the Organization must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Condition: During our testing, we noted three tenants who had failed inspections where HAP was not appropriately abated. Questioned Costs: $13,098 Context: From a sample of 40 failed HQS inspections selected for testing, three had issues where HAP was not appropriately abated. One tenant was initially abated but then reinstated a month later without the unit having passed inspection. Two tenants were not appropriately reinspected due to human error and HAP was not abated as required until the inspections passed. Cause: For one tenant, the housing special accidentally reinstated HAP by clicking a box in the system. For two tenants, the inspector did not set up the reinspection dates until after the issues were found as part of compliance testing. Effect: A program participant could receive HAP or the Utility Allowance when they were not qualified due to the unit not passing the HQS inspection. Repeat Finding: Yes. Recommendation: We recommend that Management review their current internal control process over failed HQS inspections and HAP/Utility Allowance abatements to ensure they have a process in place to identify errors before the payments go out. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-001 Calculating Expenses for Family Income Examinations Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA) Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization incorrectly calculated expenses as part of family income examination or reexamination for two tenants based on the requirements of 24 CFR Section 982.516. Condition: During our testing, we noted two tenants where expenses were incorrectly calculated based on supporting documentation. Questioned Costs: $148 Context: From a sample of 40 program participant files selected for testing, 2 tenants had expenses incorrectly calculated. Cause: The Housing Specialist made an error in calculating the expenses for 2 tenants. Effect: Two program participants received an incorrect amount of HAP payments. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure expenses are appropriately calculated in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-002 Supporting Documentation in Tenant Files Repeat of Finding 2021-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Eligibility, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: The Organization was missing a HAP contract for the tenant's address/rent that was selected in eligibility testing. Per 24 CFR Section 982.158 and ICS's admin plan, a HAP contract is required. Condition: During our testing, we noted that one file did not have the HAP contract for the correct tenant address for one file. Questioned Costs: None Context: From a sample of 40 program participant files selected for testing, one tenant was missing the appropriate HAP contract. Cause: The Organization did not maintain supporting documentation in the file. The Organization moved to an electronic files system several years ago. Some of the information from the paper file was not scanned and/or verified to be contained in the electronic file. Effect: File did not contain required information per 24 CFR 982.158 and admin plan. A program participant could have been receiving an incorrect amount of HAP. Repeat Finding: Yes. Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-003 Supporting Documentation for Family Size Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status. Condition: During our testing, we noted one file where one of the adults was identified as an eligible non-citizen; however, there was no documentation of eligible non-citizen forms (Form I-551 or I-91) retained in the file. Questioned Costs: $570 Context: From a sample of 40 program participant files selected for testing, one file did not contain the appropriate information to document that one of the adults in the household was an eligible non-citizen. HAP was potentially overpaid. Cause: The Housing Specialist did not obtain the appropriate form to document the non-eligible citizen status and therefore incorrectly calculated the HAP payment. Effect: One program participant received an overpayment of HAP. Repeat Finding: No. Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-004 Housing Assistance Payments Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater Criteria or Specific Requirement: Per 24 CFR Section 982.158, the HAP payment must agree to the HAP contract and HAP register. Condition: During our testing, we noted that the Organization overpaid HAP for one file for part of 2022 due human error in entering a 01/01/2023 HAP increase as of 01/01/2022. The system issued an additional check in 2022 and the Organization was unable to recoup the entire amount. Questioned Costs: $98 Context: From a sample of 40 program participant files selected for testing, 1 tenant had the above issue where HAP was overpaid due to entering the wrong date for an increase. Cause: The Housing Specialist made an error in entering the date of a HAP increase. Effect: One program participant received an overpayment of HAP. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate HAP is paid and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.
2022-005 Abatement related to Failed HQS Inspections Repeat of Finding 2021-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests ? HQS Failed Inspections Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter Criteria or Specific Requirement: Per CFR Sections 982.158(d) and 982.404, for units under HAP contract that fail to meet HQS, the Organization must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Condition: During our testing, we noted three tenants who had failed inspections where HAP was not appropriately abated. Questioned Costs: $13,098 Context: From a sample of 40 failed HQS inspections selected for testing, three had issues where HAP was not appropriately abated. One tenant was initially abated but then reinstated a month later without the unit having passed inspection. Two tenants were not appropriately reinspected due to human error and HAP was not abated as required until the inspections passed. Cause: For one tenant, the housing special accidentally reinstated HAP by clicking a box in the system. For two tenants, the inspector did not set up the reinspection dates until after the issues were found as part of compliance testing. Effect: A program participant could receive HAP or the Utility Allowance when they were not qualified due to the unit not passing the HQS inspection. Repeat Finding: Yes. Recommendation: We recommend that Management review their current internal control process over failed HQS inspections and HAP/Utility Allowance abatements to ensure they have a process in place to identify errors before the payments go out. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.