Finding 2022-001 U.S. Department of Housing and Urban Development Moving to Work Demonstration Program - ALN 14.881 Eligibility and Reporting Repeat Finding from 2021 Condition: During our review of 60 tenant files prepared by the Housing Authority of the City of Pittsburgh (Authority) as part of the biennial reexamination process, we noted a lack of functioning internal controls which led to the below exceptions in our testing. We noted 2 tenant files (which provide eligibility and reporting information) were unable to be provided. Additionally, we noted 4 tenants for which the most recent recertification was not completed on a timely basis. Also noted was one tenant file that did not contain the required income verification support. In all cases previously described, the HUD-50058, Family Report (OMB No. 2577-0083) (HUD-50058) forms prepared by the Authority were not completed and/or did not contain support for the calculations. All instances related to the MTW - Housing Choice Voucher program. In addition, we noted the following exceptions related to the tenant recertification process: We noted two instances where the application was missing or not signed, three instances where the tenant file was missing a social security card or driver?s license, two instances where the signed HUD Form 9886 was missing, two instances where a signed lease agreement was missing, and two instances where a signed HAP contract was missing. Criteria: The Authority is required to prepare and submit HUD-50058 form each time the Authority completes an admission, annual reexamination, portability move-in, or other change of unit for a family. The form provides HUD and the Authority with vital eligibility data for each program participant such as family composition, family income, the assets and liabilities of program participants, and ultimately provides for the calculation of tenant rent and rental/housing assistance payments for each program participant. In relation to the missing documents noted in the second paragraph above, these documents are to be maintained to support the eligibility of the tenant, and are also required to be maintained to provide support for the tenant income and eligibility determinations completed on the HUD-50058 form. The signed lease and HAP contracts are also required to ensure appropriate amounts are used in calculation subsidy payments, and appropriate payments are made to landlords for the housing provided. Cause: During the year, the Authority experienced turnover within several key positions, coupled with other logistical staffing challenges, that led to deficiencies in internal control processes over these areas. Effect: HUD-50058 forms provide essential information to HUD as well as being used by the Authority to determine program eligibility. In addition, the HUD-50058 form is used for the calculation of tenant rent and rental/housing assistance payments. Without this required documentation, this could lead to ineligible tenants being housed through the Authority program, and/or overpayments or underpayments of rental assistance, and incorrect information being reported to HUD. Questioned Costs: Unknown Recommendation: We recommend that the Authority implement additional procedures to ensure biennial recertification and the related HUD-50058 forms are prepared timely and accurately and that all supporting documentation is obtained and retained. In addition, appropriate training and planning should be performed to ensure that future turnover in the organization does not lead to a lapse in internal controls over compliance. Views of responsible officials and planned corrective action: Management agrees with the finding. See separate corrective action plan.
Finding 2022-002 U.S. Department of Housing and Urban Development Moving to Work Demonstration Program - ALN 14.881 Special Tests and Provisions Condition: During our review of 40 failed inspection reports prepared by the Authority as part of the biennial reexamination process, we noted two units in which rent (or partial month?s rent) was not abated when the deficiencies were not corrected within the required time frame. We also noted 29 instances where we were not able to review documentation as to the exact date the landlord was notified about the deficiencies. In all of these instances, the repairs were made in a required timeframe, leading to a conclusion that the landlords were made aware of the deficiencies, however, proper documentation of that fact was not able to be reviewed. Criteria: The Authority is required to have controls in place to ensure rent is abated to landlords for units that do not repair deficiencies noted in the unit inspection within 30 days, or 24 hours for life threatening deficiencies. The Authority is also required to have internal controls in place and maintain documentation of their communication to the landlords of such deficiencies. Cause: During the year, the Authority experienced turnover within several key positions, coupled with other logistical staffing challenges, that led to deficiencies in internal control processes over these areas. Effect: The proper abatement of rent to landlords who do not resolve unit deficiencies helps to ensure safe and affordable housing for tenants. While the two units noted passed inspection the following month, rent should have been abated for a period. Maintaining the letters communicating deficiencies to landlords helps to ensure that the Authority?s processes are being followed and that landlords are notified timely of such deficiencies. Questioned Costs: Unknown Recommendation: We recommend that the Authority implement additional procedures to ensure rent is properly abated when deficiencies are not resolved within the required timeframe and that letters to landlords notifying them of such deficiencies are maintained. In addition, appropriate training and planning should be performed to ensure that future turnover in the organization does not lead to a lapse in internal controls over compliance. Views of responsible officials and planned corrective action: Management agrees with the finding. See separate corrective action plan.
Finding 2022-001 U.S. Department of Housing and Urban Development Moving to Work Demonstration Program - ALN 14.881 Eligibility and Reporting Repeat Finding from 2021 Condition: During our review of 60 tenant files prepared by the Housing Authority of the City of Pittsburgh (Authority) as part of the biennial reexamination process, we noted a lack of functioning internal controls which led to the below exceptions in our testing. We noted 2 tenant files (which provide eligibility and reporting information) were unable to be provided. Additionally, we noted 4 tenants for which the most recent recertification was not completed on a timely basis. Also noted was one tenant file that did not contain the required income verification support. In all cases previously described, the HUD-50058, Family Report (OMB No. 2577-0083) (HUD-50058) forms prepared by the Authority were not completed and/or did not contain support for the calculations. All instances related to the MTW - Housing Choice Voucher program. In addition, we noted the following exceptions related to the tenant recertification process: We noted two instances where the application was missing or not signed, three instances where the tenant file was missing a social security card or driver?s license, two instances where the signed HUD Form 9886 was missing, two instances where a signed lease agreement was missing, and two instances where a signed HAP contract was missing. Criteria: The Authority is required to prepare and submit HUD-50058 form each time the Authority completes an admission, annual reexamination, portability move-in, or other change of unit for a family. The form provides HUD and the Authority with vital eligibility data for each program participant such as family composition, family income, the assets and liabilities of program participants, and ultimately provides for the calculation of tenant rent and rental/housing assistance payments for each program participant. In relation to the missing documents noted in the second paragraph above, these documents are to be maintained to support the eligibility of the tenant, and are also required to be maintained to provide support for the tenant income and eligibility determinations completed on the HUD-50058 form. The signed lease and HAP contracts are also required to ensure appropriate amounts are used in calculation subsidy payments, and appropriate payments are made to landlords for the housing provided. Cause: During the year, the Authority experienced turnover within several key positions, coupled with other logistical staffing challenges, that led to deficiencies in internal control processes over these areas. Effect: HUD-50058 forms provide essential information to HUD as well as being used by the Authority to determine program eligibility. In addition, the HUD-50058 form is used for the calculation of tenant rent and rental/housing assistance payments. Without this required documentation, this could lead to ineligible tenants being housed through the Authority program, and/or overpayments or underpayments of rental assistance, and incorrect information being reported to HUD. Questioned Costs: Unknown Recommendation: We recommend that the Authority implement additional procedures to ensure biennial recertification and the related HUD-50058 forms are prepared timely and accurately and that all supporting documentation is obtained and retained. In addition, appropriate training and planning should be performed to ensure that future turnover in the organization does not lead to a lapse in internal controls over compliance. Views of responsible officials and planned corrective action: Management agrees with the finding. See separate corrective action plan.
Finding 2022-002 U.S. Department of Housing and Urban Development Moving to Work Demonstration Program - ALN 14.881 Special Tests and Provisions Condition: During our review of 40 failed inspection reports prepared by the Authority as part of the biennial reexamination process, we noted two units in which rent (or partial month?s rent) was not abated when the deficiencies were not corrected within the required time frame. We also noted 29 instances where we were not able to review documentation as to the exact date the landlord was notified about the deficiencies. In all of these instances, the repairs were made in a required timeframe, leading to a conclusion that the landlords were made aware of the deficiencies, however, proper documentation of that fact was not able to be reviewed. Criteria: The Authority is required to have controls in place to ensure rent is abated to landlords for units that do not repair deficiencies noted in the unit inspection within 30 days, or 24 hours for life threatening deficiencies. The Authority is also required to have internal controls in place and maintain documentation of their communication to the landlords of such deficiencies. Cause: During the year, the Authority experienced turnover within several key positions, coupled with other logistical staffing challenges, that led to deficiencies in internal control processes over these areas. Effect: The proper abatement of rent to landlords who do not resolve unit deficiencies helps to ensure safe and affordable housing for tenants. While the two units noted passed inspection the following month, rent should have been abated for a period. Maintaining the letters communicating deficiencies to landlords helps to ensure that the Authority?s processes are being followed and that landlords are notified timely of such deficiencies. Questioned Costs: Unknown Recommendation: We recommend that the Authority implement additional procedures to ensure rent is properly abated when deficiencies are not resolved within the required timeframe and that letters to landlords notifying them of such deficiencies are maintained. In addition, appropriate training and planning should be performed to ensure that future turnover in the organization does not lead to a lapse in internal controls over compliance. Views of responsible officials and planned corrective action: Management agrees with the finding. See separate corrective action plan.