Audit 56439

2022-001 ? SPECIAL TESTS AND PROVISIONS ? CARES ACT FUNDING Other Matter/Significant Deficiency U.S. Department of Housing and Urban Development CFDA #: 14.871 ? Housing Choice Voucher Program ? CARES Act CRITERIA The funding provided through this notice may only be used for current year eligible HAP expenses. HAP funding cannot be used for the repayment of debts or any amounts owed to HUD by HUD program participants including, but not limited to, Office of Inspector General (OIG), Quality Assurance Division (QAD) or other monitoring review findings. HAP cannot be used for Administrative Fee purposes. (PIH Notice 2020-17) CONDITION As identified by HUD during its QAD review, the Authority used $47,901 of the supplemental HAP funding for ineligible expenses of disallowed rent payments and unauthorized rent increases. CAUSE The Authority did not fully understand the eligible uses of the supplemental HAP funding. EFFECT The Authority had used the supplemental HAP funding for ineligible expenses. QUESTIONED COSTS None identified as this matter was addressed with HUD. CONTEXT The Authority received 1 increment of supplement CARES Act funding of $161,440. This was not a statistically valid sample. REPEAT FINDING Not a repeat finding RECOMMENDATION The Authority should develop a CARES Act training program for staff which would include a review of eligible uses of both the supplemental administrative fee and HAP funding. The Authority should continue with their corrective action plan submitted to HUD in response to the QAD review. AUDITEE?S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.

2022-001 ? SPECIAL TESTS AND PROVISIONS ? CARES ACT FUNDING Other Matter/Significant Deficiency U.S. Department of Housing and Urban Development CFDA #: 14.871 ? Housing Choice Voucher Program ? CARES Act CRITERIA The funding provided through this notice may only be used for current year eligible HAP expenses. HAP funding cannot be used for the repayment of debts or any amounts owed to HUD by HUD program participants including, but not limited to, Office of Inspector General (OIG), Quality Assurance Division (QAD) or other monitoring review findings. HAP cannot be used for Administrative Fee purposes. (PIH Notice 2020-17) CONDITION As identified by HUD during its QAD review, the Authority used $47,901 of the supplemental HAP funding for ineligible expenses of disallowed rent payments and unauthorized rent increases. CAUSE The Authority did not fully understand the eligible uses of the supplemental HAP funding. EFFECT The Authority had used the supplemental HAP funding for ineligible expenses. QUESTIONED COSTS None identified as this matter was addressed with HUD. CONTEXT The Authority received 1 increment of supplement CARES Act funding of $161,440. This was not a statistically valid sample. REPEAT FINDING Not a repeat finding RECOMMENDATION The Authority should develop a CARES Act training program for staff which would include a review of eligible uses of both the supplemental administrative fee and HAP funding. The Authority should continue with their corrective action plan submitted to HUD in response to the QAD review. AUDITEE?S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.