In accordance with 24 CFR section 5.801 ? Uniform Reporting Standards, PHAs are required to submit timely GAAP-based unaudited financial information electronically to HUD. The above requirements were not met for the 2022 audit. During the audit, we noted the 2022 unaudited FDS was filed after the due date PHA was unable to complete the 2022 unaudited FDS timely. The Authority was in violation of the Federal Regulations relating to report submissions. We recommend that Management implement procedures to ensure compliance with the above regulations as it relates to all federal awards. Management agrees with the finding and have outlined a plan of action in the corrective action plan section of this report.
"The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR ??982.405, 983.103). Additionally, for units under HAP contract that fail to meet HQS, the PHA 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. The owner is not responsible for a breach of HQS as a result of the family?s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404)." The above requirements were not met for the 2022 audit. During our audit, the Authority was unable to provide us with a reliable listing of HQS Inspections or any supporting documentation that any HQS inspections had taken place during the fiscal year under examination. Therefore, we were not able to perform the necessary procedures as described in the Uniform Guidance Part IV HUD 14.871 to ensure compliance with the above criteria. Controls over compliance associated with the Authority?s grants of federal funds are inadequate. The Authority is non-compliant with the federal regulations over this federal program, this could potentially result in significant operating and financial penalties. We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to these grants as well as maintaining more accurate and complete documentation of adherence to compliance. Management agrees with the finding and have outlined a plan of action in the corrective action plan section of this report.
In accordance with the 2014 Appropriations Act Section 242, the utility allowance for a family shall be the lower of: (1) The utility allowance amount for the family unit size; or (2) the utility allowance amount for the unit size of the unit rented by the family. However, upon the request of a family that includes a person with disabilities, the PHA must approve a utility allowance higher than the applicable amount if such a higher utility allowance is needed as a reasonable accommodation in accordance with HUD's regulations in 24 CFR part 8 to make the program accessible to and usable by the family member with a disability. This provision applies only to vouchers issued after the effective date of this notice (June 12, 2014) and to current program participants. For current program participants, a PHA must implement the new allowance at the family's next annual reexamination, provided that the PHA is able to provide a family with at least 60 days' notice prior to the reexamination. The above requirements were not met for the 2022 audit. During the audit we selected 10 tenants to test, we noted 10 out of the 10 tenants did not have an accurate utility allowance calculation. Based on this projection, the error rate would be 100%. Personnel responsible for calculating the utility allowances were not informed of requirements and no internal controls were in place to ensure compliance. The Authority was in violation of the Federal Regulation which resulted in errors in calculating Housing Assistance Payments (HAP) and utility reimbursement payments. We recommend that Management implement procedures to ensure compliance with the above regulations as it relates to the Housing Choice Voucher Program. Management agrees with the finding and have outlined a plan of action in the corrective action plan section of this report.
The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract: (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a five percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). The above requirements were not met for the 2022 audit. During the audit we selected 10 tenants to test, we noted 10 out of the 10 tenants had no rent reasonableness analysis completed. The Authority did have a payment standard in place, however, they did not complete rent reasonableness analyses for 10 out of 10 of the tested in our Eligibility testing. If we extrapolate this error rate, the entire population did not have this completed. The Authority was in violation of the Federal Regulation which could have resulted in overpayment of Housing Assistance Payments (HAP). We recommend that Management implement procedures to ensure compliance with the above regulations as it relates to the Housing Choice Voucher Program. Management agrees with the finding and have outlined a plan of action in the corrective action plan section of this report.
Except as provided in 24 CFR section 982.203 (Special admission (non-waiting list)), all families admitted to the program must be selected from the waiting list. ?Selection? from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). The above requirements were not met for the 2022 audit. During the audit we selected 2 new admissions to test, we noted 2 out of the 2 tenants did not have documentation showing how the tenants were selected from the waiting list. Personnel responsible for selecting new tenants from the waiting list did not keep support. The above condition resulted in the Authority being out of compliance with Federal Regulations. We recommend that Management implement procedures to ensure compliance with the above regulations as it relates to the Housing Choice Voucher Program. Management agrees with the finding and have outlined a plan of action in the corrective action plan section of this report.
In accordance with 24 CFR section 5.801 ? Uniform Reporting Standards, PHAs are required to submit timely GAAP-based unaudited financial information electronically to HUD. The above requirements were not met for the 2022 audit. During the audit, we noted the 2022 unaudited FDS was filed after the due date PHA was unable to complete the 2022 unaudited FDS timely. The Authority was in violation of the Federal Regulations relating to report submissions. We recommend that Management implement procedures to ensure compliance with the above regulations as it relates to all federal awards. Management agrees with the finding and have outlined a plan of action in the corrective action plan section of this report.
"The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR ??982.405, 983.103). Additionally, for units under HAP contract that fail to meet HQS, the PHA 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. The owner is not responsible for a breach of HQS as a result of the family?s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404)." The above requirements were not met for the 2022 audit. During our audit, the Authority was unable to provide us with a reliable listing of HQS Inspections or any supporting documentation that any HQS inspections had taken place during the fiscal year under examination. Therefore, we were not able to perform the necessary procedures as described in the Uniform Guidance Part IV HUD 14.871 to ensure compliance with the above criteria. Controls over compliance associated with the Authority?s grants of federal funds are inadequate. The Authority is non-compliant with the federal regulations over this federal program, this could potentially result in significant operating and financial penalties. We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to these grants as well as maintaining more accurate and complete documentation of adherence to compliance. Management agrees with the finding and have outlined a plan of action in the corrective action plan section of this report.
In accordance with the 2014 Appropriations Act Section 242, the utility allowance for a family shall be the lower of: (1) The utility allowance amount for the family unit size; or (2) the utility allowance amount for the unit size of the unit rented by the family. However, upon the request of a family that includes a person with disabilities, the PHA must approve a utility allowance higher than the applicable amount if such a higher utility allowance is needed as a reasonable accommodation in accordance with HUD's regulations in 24 CFR part 8 to make the program accessible to and usable by the family member with a disability. This provision applies only to vouchers issued after the effective date of this notice (June 12, 2014) and to current program participants. For current program participants, a PHA must implement the new allowance at the family's next annual reexamination, provided that the PHA is able to provide a family with at least 60 days' notice prior to the reexamination. The above requirements were not met for the 2022 audit. During the audit we selected 10 tenants to test, we noted 10 out of the 10 tenants did not have an accurate utility allowance calculation. Based on this projection, the error rate would be 100%. Personnel responsible for calculating the utility allowances were not informed of requirements and no internal controls were in place to ensure compliance. The Authority was in violation of the Federal Regulation which resulted in errors in calculating Housing Assistance Payments (HAP) and utility reimbursement payments. We recommend that Management implement procedures to ensure compliance with the above regulations as it relates to the Housing Choice Voucher Program. Management agrees with the finding and have outlined a plan of action in the corrective action plan section of this report.
The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract: (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a five percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). The above requirements were not met for the 2022 audit. During the audit we selected 10 tenants to test, we noted 10 out of the 10 tenants had no rent reasonableness analysis completed. The Authority did have a payment standard in place, however, they did not complete rent reasonableness analyses for 10 out of 10 of the tested in our Eligibility testing. If we extrapolate this error rate, the entire population did not have this completed. The Authority was in violation of the Federal Regulation which could have resulted in overpayment of Housing Assistance Payments (HAP). We recommend that Management implement procedures to ensure compliance with the above regulations as it relates to the Housing Choice Voucher Program. Management agrees with the finding and have outlined a plan of action in the corrective action plan section of this report.
Except as provided in 24 CFR section 982.203 (Special admission (non-waiting list)), all families admitted to the program must be selected from the waiting list. ?Selection? from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). The above requirements were not met for the 2022 audit. During the audit we selected 2 new admissions to test, we noted 2 out of the 2 tenants did not have documentation showing how the tenants were selected from the waiting list. Personnel responsible for selecting new tenants from the waiting list did not keep support. The above condition resulted in the Authority being out of compliance with Federal Regulations. We recommend that Management implement procedures to ensure compliance with the above regulations as it relates to the Housing Choice Voucher Program. Management agrees with the finding and have outlined a plan of action in the corrective action plan section of this report.