2022-003 ? SPECIAL TESTS AND PROVISIONS ? HQS ENFORCEMENT Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.871 ? Housing Voucher Cluster CRITERIA The PHA must not make any housing assistance payments for a dwelling unit that fails to meet the HQS, unless the owner corrects the defect within the period specified by the PHA and the PHA verifies the correction. If a defect is life threatening, the owner must correct the defect within no more than 24 hours. For other defects, the owner must correct the defect within no more than 30 calendar days (or any PHA-approved extension). (24 CFR 982.404 (3)) CONDITION Reinspection, follow up and/or abatement documentation was missing for 4 out of 40 initial failed inspections. CAUSE Procedures were not in place to properly document the corrections of deficiencies and abate the housing assistance payments when necessary. EFFECT The Authority may have made housing assistance payments to landlords for units that failed to meet housing quality standards QUESTIONED COSTS None Identified. CONTEXT There were 261 failed HQS inspections for the Housing Choice Voucher Program during 2022. We selected a sample of 40 failed HQS inspections. This was not a statistically valid sample. REPEAT FINDING Repeated from Finding 2021-005. RECOMMENDATION We recommend that procedures be strengthened to ensure that documentation is maintained for all inspections and enforcements. AUDITEE?S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
2022-002 ? ELIGIBILITY Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.850 ? Public and Indian Housing Program CRITERIA Except as provided in paragraph (c)(2) of this section, the PHA must obtain and document in the family file third-party verification of the following factors, or must document in the file why third-party verification was not available: (i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income or income-based rent. (24 CFR 960.259) CONDITION From our sample of 40 recertification actions in the Public Housing Program, we identified 4 instances of missing verifications or the instances where verifications obtained did not agree to amounts reported on the form 50058. CAUSE The Authority's system of third-party verifications of tenant?s income and choice of rent was not sufficient to properly administer the program. EFFECT The Authority did not implement procedures that ensured proper verification and calculation of income, expenses, and deductions are used in calculating annual income, adjusted income, and thereby rent. QUESTIONED COSTS None Identified. CONTEXT The Authority owns and operates 803 units of Public Housing. We selected a sample of 40 participant files. This was not a statistically valid sample. REPEAT FINDING Repeated from Finding 2021-004. RECOMMENDATION We recommend policies and procedures are strengthened to ensure all proper documentation and annual recertification are maintained in all tenant files to document eligibility. AUDITEE?S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
2022-004 ? PROCUREMENT, SUSPENSION, AND DEBARMENT Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.850 ? Public and Indian Housing Program CRITERIA For any amounts above the Petty Cash ceiling, but not exceeding $250,000 in accordance with revisions to 2CFR 200.67 and 2 CFR 200.88, the NBHA may use small purchase procedures. Under small purchase procedures, the NBHA shall obtain a reasonable number of quotes (preferably three); however, for purchases of less than $10,000, per NDAA Section 806 also known as Micro Purchases, only one quote is required provided the quote is reasonable. CONDITION We identified 2 instances in which sufficient documentation was not maintained to support the procurement of the vendor. CAUSE Documentation of procurement decisions was not sufficiently maintained. EFFECT The Authority has not ensured that it is receiving the most competitive prices or rates for services that have been procured, which may have resulted in unnecessary additional costs to the Authority. QUESTIONED COSTS Known Questioned Costs - $240,707, representing the aggregate payments to these two vendors. CONTEXT All purchases are required to be made in accordance with the Authority?s procurement policy. There were approximately 40 vendors paid in excess of the micro purchase threshold. We selected a sample of 4 vendors. This was not a statistically valid sample. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority develop and implement sufficient policies and procedures which provides for compliance with the Procurement, Suspension, and Debarment requirements of the Uniform Guidance. AUDITEE?S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
2022-003 ? SPECIAL TESTS AND PROVISIONS ? HQS ENFORCEMENT Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.871 ? Housing Voucher Cluster CRITERIA The PHA must not make any housing assistance payments for a dwelling unit that fails to meet the HQS, unless the owner corrects the defect within the period specified by the PHA and the PHA verifies the correction. If a defect is life threatening, the owner must correct the defect within no more than 24 hours. For other defects, the owner must correct the defect within no more than 30 calendar days (or any PHA-approved extension). (24 CFR 982.404 (3)) CONDITION Reinspection, follow up and/or abatement documentation was missing for 4 out of 40 initial failed inspections. CAUSE Procedures were not in place to properly document the corrections of deficiencies and abate the housing assistance payments when necessary. EFFECT The Authority may have made housing assistance payments to landlords for units that failed to meet housing quality standards QUESTIONED COSTS None Identified. CONTEXT There were 261 failed HQS inspections for the Housing Choice Voucher Program during 2022. We selected a sample of 40 failed HQS inspections. This was not a statistically valid sample. REPEAT FINDING Repeated from Finding 2021-005. RECOMMENDATION We recommend that procedures be strengthened to ensure that documentation is maintained for all inspections and enforcements. AUDITEE?S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
2022-002 ? ELIGIBILITY Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.850 ? Public and Indian Housing Program CRITERIA Except as provided in paragraph (c)(2) of this section, the PHA must obtain and document in the family file third-party verification of the following factors, or must document in the file why third-party verification was not available: (i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income or income-based rent. (24 CFR 960.259) CONDITION From our sample of 40 recertification actions in the Public Housing Program, we identified 4 instances of missing verifications or the instances where verifications obtained did not agree to amounts reported on the form 50058. CAUSE The Authority's system of third-party verifications of tenant?s income and choice of rent was not sufficient to properly administer the program. EFFECT The Authority did not implement procedures that ensured proper verification and calculation of income, expenses, and deductions are used in calculating annual income, adjusted income, and thereby rent. QUESTIONED COSTS None Identified. CONTEXT The Authority owns and operates 803 units of Public Housing. We selected a sample of 40 participant files. This was not a statistically valid sample. REPEAT FINDING Repeated from Finding 2021-004. RECOMMENDATION We recommend policies and procedures are strengthened to ensure all proper documentation and annual recertification are maintained in all tenant files to document eligibility. AUDITEE?S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
2022-004 ? PROCUREMENT, SUSPENSION, AND DEBARMENT Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.850 ? Public and Indian Housing Program CRITERIA For any amounts above the Petty Cash ceiling, but not exceeding $250,000 in accordance with revisions to 2CFR 200.67 and 2 CFR 200.88, the NBHA may use small purchase procedures. Under small purchase procedures, the NBHA shall obtain a reasonable number of quotes (preferably three); however, for purchases of less than $10,000, per NDAA Section 806 also known as Micro Purchases, only one quote is required provided the quote is reasonable. CONDITION We identified 2 instances in which sufficient documentation was not maintained to support the procurement of the vendor. CAUSE Documentation of procurement decisions was not sufficiently maintained. EFFECT The Authority has not ensured that it is receiving the most competitive prices or rates for services that have been procured, which may have resulted in unnecessary additional costs to the Authority. QUESTIONED COSTS Known Questioned Costs - $240,707, representing the aggregate payments to these two vendors. CONTEXT All purchases are required to be made in accordance with the Authority?s procurement policy. There were approximately 40 vendors paid in excess of the micro purchase threshold. We selected a sample of 4 vendors. This was not a statistically valid sample. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority develop and implement sufficient policies and procedures which provides for compliance with the Procurement, Suspension, and Debarment requirements of the Uniform Guidance. AUDITEE?S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.