Audit 5733

Finding 2023-001 - Tenant Eligibility and Reexaminations (Material Weakness, Material Noncompliance) Moving To Work Demonstration Program – ALN No. 14.881; Grant period – fiscal year ended March 31, 2023 Criteria The Public Housing Occupancy Guidebook and other HUD PIH Notices and Handbooks provide requirements and guidance for which the Moving To Work Demonstration Program is to be administered and operated under with respect to tenant eligibility and reexaminations. Specifically, the Housing Authority must conduct annual reexaminations for all persons and families assisted under the Program. Condition and Perspective During audit fieldwork, forty tenant files that were administered under the Moving To Work Demonstration Program were requested for review for compliance with Program eligibility and reexamination requirements. Housing Authority management was unable to provide two of the requested files, in addition to several other forms, all of which were applicable to Public Housing. The following omissions were noted from the thirty-eight files provided: 1) One file was missing HUD 50058 Reexamination Forms 2) Two files were missing a signed HUD 9886 Authorization for Release of Information Form 3) Three files were missing a third-party verification of income Cause Failure to execute controls over the federal ‘Eligibility’ compliance requirement. Effect Non-compliance with the federal ‘Eligibility’ requirement. Questioned Costs - None noted. Recommendation We recommend that the Housing Authority implement and execute strengthened controls over the federal ‘Eligibility’ compliance requirement to include the performance of annual reexaminations and documentation maintenance. Management’s Response We became aware of these issues before audit fieldwork was performed and have made personnel changes in addition to internal control changes that have strengthened the controls over federal ‘Eligibility’ compliance requirements.

Finding 2023-001 - Tenant Eligibility and Reexaminations (Material Weakness, Material Noncompliance) Moving To Work Demonstration Program – ALN No. 14.881; Grant period – fiscal year ended March 31, 2023 Criteria The Public Housing Occupancy Guidebook and other HUD PIH Notices and Handbooks provide requirements and guidance for which the Moving To Work Demonstration Program is to be administered and operated under with respect to tenant eligibility and reexaminations. Specifically, the Housing Authority must conduct annual reexaminations for all persons and families assisted under the Program. Condition and Perspective During audit fieldwork, forty tenant files that were administered under the Moving To Work Demonstration Program were requested for review for compliance with Program eligibility and reexamination requirements. Housing Authority management was unable to provide two of the requested files, in addition to several other forms, all of which were applicable to Public Housing. The following omissions were noted from the thirty-eight files provided: 1) One file was missing HUD 50058 Reexamination Forms 2) Two files were missing a signed HUD 9886 Authorization for Release of Information Form 3) Three files were missing a third-party verification of income Cause Failure to execute controls over the federal ‘Eligibility’ compliance requirement. Effect Non-compliance with the federal ‘Eligibility’ requirement. Questioned Costs - None noted. Recommendation We recommend that the Housing Authority implement and execute strengthened controls over the federal ‘Eligibility’ compliance requirement to include the performance of annual reexaminations and documentation maintenance. Management’s Response We became aware of these issues before audit fieldwork was performed and have made personnel changes in addition to internal control changes that have strengthened the controls over federal ‘Eligibility’ compliance requirements.