Audit 5108

Finding 2023-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Emergency Housing Vouchers Assistance Listing Number: 14.EHV Noncompliance – E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: No Significant deficiency in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Condition: Based upon inspection of the Authority’s files and on discussions with management there were documents that were unavailable for examination at the time of audit. Context: Of a sample size of six (6) tenant files, the following information was unavailable for examination at the time of audit: (1) Annual 50058 form (1) Annual inspection form . Our sample size is statistically valid. Known Questioned Costs: $1,775 Cause: There is a significant deficiency in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered and designed a system of internal controls that reasonably assures the program is in compliance. Effect: The Emergency Housing Vouchers Program is in non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Authority Response: The PHA has taken into consideration the Auditor’s recommendation in regards to Emergency Housing Vouchers (EHV) program. During the audit period, the staff assigned to the EHV program changed three times, resulting in program deficiencies. Currently a more skilled tenant interviewer is responsible for voucher processing, therefore program compliance will be in line with HUD requirement.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Voucher Assistance Listing Number: 14.871 Noncompliance – N. Special Tests and Provisions – Housing Quality Standards Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets the Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority’s files and on discussions with management, the Authority did not properly abate thirteen (13) out of twenty-five (25) annual failed inspections selected for testing. Context: The Authority did not properly abate thirteen (13) out of twenty-five (25) failed inspections selected for testing. As a result, the Authority was not in compliance with the HQS as required by 24 CFR sections 982.158(d) and 982.405(b). Known Questioned Costs: $66,242. Cause: There is a material weakness in internal controls over compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers Program is in material non-compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. Authority Response: We agree with the Auditor’s observations on the re-inspection of the failed units. Based on the auditor’s recommendation, the Authority will implement a more stringent oversight to ensure that internal control policies are being followed in a timely manner to show improvement in this area. In addition, the Authority has recently hired a HQS inspector in the Leasing and Occupancy department, which will assist to improve the quality control component of the program. Further the Authority is actively seeking to fill the vacant Director and Supervisor positions in the L&O department, to improve the entire operation function of this department.

Finding 2023-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Emergency Housing Vouchers Assistance Listing Number: 14.EHV Noncompliance – E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: No Significant deficiency in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Condition: Based upon inspection of the Authority’s files and on discussions with management there were documents that were unavailable for examination at the time of audit. Context: Of a sample size of six (6) tenant files, the following information was unavailable for examination at the time of audit: (1) Annual 50058 form (1) Annual inspection form . Our sample size is statistically valid. Known Questioned Costs: $1,775 Cause: There is a significant deficiency in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered and designed a system of internal controls that reasonably assures the program is in compliance. Effect: The Emergency Housing Vouchers Program is in non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Authority Response: The PHA has taken into consideration the Auditor’s recommendation in regards to Emergency Housing Vouchers (EHV) program. During the audit period, the staff assigned to the EHV program changed three times, resulting in program deficiencies. Currently a more skilled tenant interviewer is responsible for voucher processing, therefore program compliance will be in line with HUD requirement.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Voucher Assistance Listing Number: 14.871 Noncompliance – N. Special Tests and Provisions – Housing Quality Standards Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets the Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority’s files and on discussions with management, the Authority did not properly abate thirteen (13) out of twenty-five (25) annual failed inspections selected for testing. Context: The Authority did not properly abate thirteen (13) out of twenty-five (25) failed inspections selected for testing. As a result, the Authority was not in compliance with the HQS as required by 24 CFR sections 982.158(d) and 982.405(b). Known Questioned Costs: $66,242. Cause: There is a material weakness in internal controls over compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers Program is in material non-compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. Authority Response: We agree with the Auditor’s observations on the re-inspection of the failed units. Based on the auditor’s recommendation, the Authority will implement a more stringent oversight to ensure that internal control policies are being followed in a timely manner to show improvement in this area. In addition, the Authority has recently hired a HQS inspector in the Leasing and Occupancy department, which will assist to improve the quality control component of the program. Further the Authority is actively seeking to fill the vacant Director and Supervisor positions in the L&O department, to improve the entire operation function of this department.