Audit 55831

2022-2 Condition: Deficiencies Noted in Examination of Section Eight (8) Tenant Files In a sample of Forty (40) Section 8 Participant files the following deficiencies were noted: 13 files were found that the Participates moved into PBV properties were not done timely by HCVP 1 File lacked a passed HQS inspection within 30 days of a failed HQS inspection. 1 File lacked homeownership documentation while being in the homeownership program. 1 File lacked a lease. 2 Files lacked waitlist support information. 4 Files had errors in rent calculations. 1 File lacked support for change of family composition. 4 Files had late annual recertifications. 4 Files had FSS errors in income calculations and unsupported FSS escrow calculations. 1 SEMAP not submitted to HUD FY 2022 24 CFR ? 982.405 states that (a) The PHA must inspect units leased under the HCVP at the time of initial leasing and at least annually thereafter to ensure the units meet HQS. (b) The PHA must also conduct supervisory quality control HQS inspections (24 CFR sections 982.305 and 982.405). 24 CFR ? 985.101 (a) States that a PHA must submit the HUD-required SEMAP certification form within 60 calendar days after the end of its fiscal year. CFDA Number: 14.871 Questioned Costs: None Criteria: 24 CFR ? 982.405 requirements for PHA initial and periodic unit inspection. Cause/Effect: The Authority?s deficiencies in its resident files stems from a lack of certain controls concerning HUD requirements and procedures. The Authority has not been in complete compliance with HUD requirements. Recommendation: We recommend that the Authority review its internal control procedures over tenant file re-certifications and documentation in relation to annual HQS inspections. We also recommend more standardization in file organization of information. We recommend that the Authority review its procedures over FSS escrow calculations. We recommend that the Authority review its procedures over timely submission of SEMAP. Reply: We concur with this finding and the Auditor?s recommendation. We will review the internal control procedures over tenant file re-certifications and documentation in relation to annual HQS inspections. We will implement more standardization in file organization of information and will review procedures concerning FSS escrow calculations. Management will implement procedures to clear this finding in FY 2023.

2022-1 Condition: Loss of Internal Controls over Credit Card In a sample of Three (3) months of Credit Card statements and reconciliations, the following deficiencies were noted: 1 Month (February 2022) had 30 unsupported transactions across 11 different credit cards for a total of $2,189.68. 2 Month (July 2022) had 11 unsupported transactions across 4 different credit cards for a total of $1,306.84. 3 Month (September 2022) had 36 unsupported transactions across 7 different credit cards for a total of $6,724.97. 1 CFR ? 200.303 states that (a) The PHA must establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. CFDA Number: 14.850 Questioned Costs: None Criteria: 2 CFR ? 200.303 Cause/Effect: The Authority?s deficiencies in its credit card reconciliations stem from a lack of certain controls concerning HUD requirements and procedures. The Authority has not been in complete compliance with HUD requirements. Recommendation: We recommend that the Authority review its internal control procedures over credit cards. We also recommend more standardization in monthly credit card reconciliations. Reply: We concur with this finding and the Auditor?s recommendation. We will review the internal control procedures over credit cards and will implement more standardization in monthly credit card reconciliations. Management will implement procedures to clear this finding in FY 2023.

2022-2 Condition: Deficiencies Noted in Examination of Section Eight (8) Tenant Files In a sample of Forty (40) Section 8 Participant files the following deficiencies were noted: 13 files were found that the Participates moved into PBV properties were not done timely by HCVP 1 File lacked a passed HQS inspection within 30 days of a failed HQS inspection. 1 File lacked homeownership documentation while being in the homeownership program. 1 File lacked a lease. 2 Files lacked waitlist support information. 4 Files had errors in rent calculations. 1 File lacked support for change of family composition. 4 Files had late annual recertifications. 4 Files had FSS errors in income calculations and unsupported FSS escrow calculations. 1 SEMAP not submitted to HUD FY 2022 24 CFR ? 982.405 states that (a) The PHA must inspect units leased under the HCVP at the time of initial leasing and at least annually thereafter to ensure the units meet HQS. (b) The PHA must also conduct supervisory quality control HQS inspections (24 CFR sections 982.305 and 982.405). 24 CFR ? 985.101 (a) States that a PHA must submit the HUD-required SEMAP certification form within 60 calendar days after the end of its fiscal year. CFDA Number: 14.871 Questioned Costs: None Criteria: 24 CFR ? 982.405 requirements for PHA initial and periodic unit inspection. Cause/Effect: The Authority?s deficiencies in its resident files stems from a lack of certain controls concerning HUD requirements and procedures. The Authority has not been in complete compliance with HUD requirements. Recommendation: We recommend that the Authority review its internal control procedures over tenant file re-certifications and documentation in relation to annual HQS inspections. We also recommend more standardization in file organization of information. We recommend that the Authority review its procedures over FSS escrow calculations. We recommend that the Authority review its procedures over timely submission of SEMAP. Reply: We concur with this finding and the Auditor?s recommendation. We will review the internal control procedures over tenant file re-certifications and documentation in relation to annual HQS inspections. We will implement more standardization in file organization of information and will review procedures concerning FSS escrow calculations. Management will implement procedures to clear this finding in FY 2023.

2022-1 Condition: Loss of Internal Controls over Credit Card In a sample of Three (3) months of Credit Card statements and reconciliations, the following deficiencies were noted: 1 Month (February 2022) had 30 unsupported transactions across 11 different credit cards for a total of $2,189.68. 2 Month (July 2022) had 11 unsupported transactions across 4 different credit cards for a total of $1,306.84. 3 Month (September 2022) had 36 unsupported transactions across 7 different credit cards for a total of $6,724.97. 1 CFR ? 200.303 states that (a) The PHA must establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. CFDA Number: 14.850 Questioned Costs: None Criteria: 2 CFR ? 200.303 Cause/Effect: The Authority?s deficiencies in its credit card reconciliations stem from a lack of certain controls concerning HUD requirements and procedures. The Authority has not been in complete compliance with HUD requirements. Recommendation: We recommend that the Authority review its internal control procedures over credit cards. We also recommend more standardization in monthly credit card reconciliations. Reply: We concur with this finding and the Auditor?s recommendation. We will review the internal control procedures over credit cards and will implement more standardization in monthly credit card reconciliations. Management will implement procedures to clear this finding in FY 2023.