Audit 8287

2023-001 Condition: Deficiencies Noted in Examination of Housing Choice Voucher Program Participant Files In a sample of Twenty-five (25) Housing Choice Voucher Program Participant files, the following deficiencies were noted: 2 files lacked timely annual recertification 21 files lacked timely annual inspection FY 2023 1 file lacked FY 2023 termination information for participant Assistance Listing #: 14.871 Questioned Costs: None Criteria: 24 CFR § 982 requirements for HCVP participant file maintenance. 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 inspections. We also recommend more standardization in file organization of information. Reply: We concur with this finding and the Auditor’s recommendation. We will review the internal control procedures over tenant file re-certifications and documents. Management will implement procedures to clear this finding in FY 2024.

2023-002 Condition: Questionable Use of Federal Funds The Authority ran a deficit in the Central Office Cost Center (COCC) during the year ended March 31, 2023 primarily because the COCC has expended Low Income Public Housing (LIPH) funds to support the COCC operations in violation of Federal Rules and Regulations. Through the year ended March 31, 2023, the Authority has accumulated in excess of $:144,097 in COCC administrative operating costs above those normally covered by management fees, capital asset fees, and bookkeeping fees. Assistance Listing #: 14.850 Questioned Costs: Unknown Criteria: 0MB Uniform Guidance regarding eligible and ineligible costs. Cause/Effect: Lack of oversight and long-range planning in accordance with HUD's requirements. Recommendation: We recommend that the Authority review its internal control procedures over the budgeting process sufficient to ensure that each program operates both in accordance with its budget and within its means, and for the Authority to provide a work-out plan for the COCC to substantially reduce its costs or to generate additional revenue. Reply: We concur with this finding and the Auditor's recommendation. We will establish internal financial control procedures over the budget process to ensure that each program operates within its means and in accordance with HUD regulations. We have already taken steps to reduce expenses in the COCC and will generate revenue from grants and other business activity to offset the COCC expenses. Management will take corrective action to close this finding in connection with the FY 2024 audit report.

2023-001 Condition: Deficiencies Noted in Examination of Housing Choice Voucher Program Participant Files In a sample of Twenty-five (25) Housing Choice Voucher Program Participant files, the following deficiencies were noted: 2 files lacked timely annual recertification 21 files lacked timely annual inspection FY 2023 1 file lacked FY 2023 termination information for participant Assistance Listing #: 14.871 Questioned Costs: None Criteria: 24 CFR § 982 requirements for HCVP participant file maintenance. 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 inspections. We also recommend more standardization in file organization of information. Reply: We concur with this finding and the Auditor’s recommendation. We will review the internal control procedures over tenant file re-certifications and documents. Management will implement procedures to clear this finding in FY 2024.

2023-002 Condition: Questionable Use of Federal Funds The Authority ran a deficit in the Central Office Cost Center (COCC) during the year ended March 31, 2023 primarily because the COCC has expended Low Income Public Housing (LIPH) funds to support the COCC operations in violation of Federal Rules and Regulations. Through the year ended March 31, 2023, the Authority has accumulated in excess of $:144,097 in COCC administrative operating costs above those normally covered by management fees, capital asset fees, and bookkeeping fees. Assistance Listing #: 14.850 Questioned Costs: Unknown Criteria: 0MB Uniform Guidance regarding eligible and ineligible costs. Cause/Effect: Lack of oversight and long-range planning in accordance with HUD's requirements. Recommendation: We recommend that the Authority review its internal control procedures over the budgeting process sufficient to ensure that each program operates both in accordance with its budget and within its means, and for the Authority to provide a work-out plan for the COCC to substantially reduce its costs or to generate additional revenue. Reply: We concur with this finding and the Auditor's recommendation. We will establish internal financial control procedures over the budget process to ensure that each program operates within its means and in accordance with HUD regulations. We have already taken steps to reduce expenses in the COCC and will generate revenue from grants and other business activity to offset the COCC expenses. Management will take corrective action to close this finding in connection with the FY 2024 audit report.