Federal Agency: Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871 and 14.879
Federal Award Identification Number and Year: FL063, 2023
Award Period: April 1, 2022 to March 31, 2023
Type of Finding: Material Weakness in Internal Control over Compliance, Material
Noncompliance (Modified Opinion)
Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must abate HAP payments beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). In addition, all HCV units are required to be inspected annually.
The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)).
Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted as summarized below:
Failed HQS Inspections
Number of Instances Finding
5 The second inspection was not performed in a timely manner and didn’t follow the correction period of 30 days (range 32-78 days)
4 The Authority did not properly abate HAP after the second failed inspection
Annual HQS Inspections
Number of Instances Finding
5 The annual inspection was performed late.
Questioned Costs: $890
Context: Of the 50 tenant files tested, 13 tenant files contained the errors as noted above.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority does not have adequate procedures in place to ensure units are re-inspected timely and to ensure that units with housing quality standard deficiencies are not paid housing assistance payments.
Repeat Finding: No
Recommendation: We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections.
Views of responsible officials: There is no disagreement.
Federal Agency: Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871 and 14.879
Federal Award Identification Number and Year: FL063, 2023
Award Period: April 1, 2022 to March 31, 2023
Type of Finding: Material Weakness in Internal Control over Compliance, Material
Noncompliance (Modified Opinion)
Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must abate HAP payments beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). In addition, all HCV units are required to be inspected annually.
The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)).
Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted as summarized below:
Failed HQS Inspections
Number of Instances Finding
5 The second inspection was not performed in a timely manner and didn’t follow the correction period of 30 days (range 32-78 days)
4 The Authority did not properly abate HAP after the second failed inspection
Annual HQS Inspections
Number of Instances Finding
5 The annual inspection was performed late.
Questioned Costs: $890
Context: Of the 50 tenant files tested, 13 tenant files contained the errors as noted above.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority does not have adequate procedures in place to ensure units are re-inspected timely and to ensure that units with housing quality standard deficiencies are not paid housing assistance payments.
Repeat Finding: No
Recommendation: We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections.
Views of responsible officials: There is no disagreement.
Federal Agency: Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871 and 14.879
Federal Award Identification Number and Year: FL063, 2023
Award Period: April 1, 2022 to March 31, 2023
Type of Finding: Material Weakness in Internal Control over Compliance, Material
Noncompliance (Modified Opinion)
Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must abate HAP payments beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). In addition, all HCV units are required to be inspected annually.
The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)).
Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted as summarized below:
Failed HQS Inspections
Number of Instances Finding
5 The second inspection was not performed in a timely manner and didn’t follow the correction period of 30 days (range 32-78 days)
4 The Authority did not properly abate HAP after the second failed inspection
Annual HQS Inspections
Number of Instances Finding
5 The annual inspection was performed late.
Questioned Costs: $890
Context: Of the 50 tenant files tested, 13 tenant files contained the errors as noted above.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority does not have adequate procedures in place to ensure units are re-inspected timely and to ensure that units with housing quality standard deficiencies are not paid housing assistance payments.
Repeat Finding: No
Recommendation: We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections.
Views of responsible officials: There is no disagreement.
Federal Agency: Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871 and 14.879
Federal Award Identification Number and Year: FL063, 2023
Award Period: April 1, 2022 to March 31, 2023
Type of Finding: Material Weakness in Internal Control over Compliance, Material
Noncompliance (Modified Opinion)
Criteria or specific requirement: Most PHAs devise their own application forms that are filled out by the PHA staff during an interview with the tenant. The head of the household signs (a) one or more release forms to allow the PHA to obtain information from third parties; (b) a federally prescribed general release form for employment information; and (c) a privacy notice. Under some circumstances, other members of the family are required to sign these forms (24 CFR sections 5.212 and 5.230).
The PHA must do the following:
(1) As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516).
(2) For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516).
(3) Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516).
(5) Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification (24 CFR section 982.516).
Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted. Of the tenant files provided, auditor noted the following items:
Number of Instances Finding
1 The Authority was unable to locate and provide the tenant file
1 The Authority failed to process a move out
1 Contract rent was higher than what was prescribed on the rent reasonableness form
Questioned Costs: $11,471
Context: Of the 25 tenant files tested, 3 tenant files contained the errors as noted above.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority is not in compliance with federal regulations regarding document retention and timely processing of examination.
Repeat Finding: No
Recommendation: We recommend management should designate one person to review a sample of the files that have been recertified each month, to determine if the tenant files were prepared in accordance with internal policies and until the compliance deficiencies have been corrected.
Views of responsible officials: There is no disagreement.
Federal Agency: Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871 and 14.879
Federal Award Identification Number and Year: FL063, 2023
Award Period: April 1, 2022 to March 31, 2023
Type of Finding: Material Weakness in Internal Control over Compliance, Material
Noncompliance (Modified Opinion)
Criteria or specific requirement: Most PHAs devise their own application forms that are filled out by the PHA staff during an interview with the tenant. The head of the household signs (a) one or more release forms to allow the PHA to obtain information from third parties; (b) a federally prescribed general release form for employment information; and (c) a privacy notice. Under some circumstances, other members of the family are required to sign these forms (24 CFR sections 5.212 and 5.230).
The PHA must do the following:
(1) As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516).
(2) For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516).
(3) Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516).
(5) Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification (24 CFR section 982.516).
Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted. Of the tenant files provided, auditor noted the following items:
Number of Instances Finding
1 The Authority was unable to locate and provide the tenant file
1 The Authority failed to process a move out
1 Contract rent was higher than what was prescribed on the rent reasonableness form
Questioned Costs: $11,471
Context: Of the 25 tenant files tested, 3 tenant files contained the errors as noted above.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority is not in compliance with federal regulations regarding document retention and timely processing of examination.
Repeat Finding: No
Recommendation: We recommend management should designate one person to review a sample of the files that have been recertified each month, to determine if the tenant files were prepared in accordance with internal policies and until the compliance deficiencies have been corrected.
Views of responsible officials: There is no disagreement.
Federal Agency: Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871 and 14.879
Federal Award Identification Number and Year: FL063, 2023
Award Period: April 1, 2022 to March 31, 2023
Type of Finding: Material Weakness in Internal Control over Compliance, Material
Noncompliance (Modified Opinion)
Criteria or specific requirement: Most PHAs devise their own application forms that are filled out by the PHA staff during an interview with the tenant. The head of the household signs (a) one or more release forms to allow the PHA to obtain information from third parties; (b) a federally prescribed general release form for employment information; and (c) a privacy notice. Under some circumstances, other members of the family are required to sign these forms (24 CFR sections 5.212 and 5.230).
The PHA must do the following:
(1) As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516).
(2) For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516).
(3) Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516).
(5) Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification (24 CFR section 982.516).
Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted. Of the tenant files provided, auditor noted the following items:
Number of Instances Finding
1 The Authority was unable to locate and provide the tenant file
1 The Authority failed to process a move out
1 Contract rent was higher than what was prescribed on the rent reasonableness form
Questioned Costs: $11,471
Context: Of the 25 tenant files tested, 3 tenant files contained the errors as noted above.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority is not in compliance with federal regulations regarding document retention and timely processing of examination.
Repeat Finding: No
Recommendation: We recommend management should designate one person to review a sample of the files that have been recertified each month, to determine if the tenant files were prepared in accordance with internal policies and until the compliance deficiencies have been corrected.
Views of responsible officials: There is no disagreement.
Federal Agency: Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871 and 14.879
Federal Award Identification Number and Year: FL063, 2023
Award Period: April 1, 2022 to March 31, 2023
Type of Finding: Material Weakness in Internal Control over Compliance, Material
Noncompliance (Modified Opinion)
Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. Expect as provided in 24 CFR section 982.203 (Special admission (non-waiting list)), all families admitted to the program must be selected from the waiting list. “Selection from the waiting list generally occurs when the PHA notifies a family whose names reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207).
Condition: During the testing of the Housing Choice Voucher Program tenant files, certain selection from the Waiting List deficiencies were noted as summarized below:
Number of Instances Finding
1 The participant was processed as a regular voucher without being placed on the waiting list. The participant is a mainstream referral but there is no documentation that verifies the classification of the participant as mainstream.
4 The HUD-52578b was missing or where the HUD-52578b was not properly signed by the Authority and tenant.
Questioned Costs: $1,898
Context: Of the 25 tenant files tested, 5 tenant files contained the errors as noted above.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority does not have adequate internal controls over compliance with program requirements.
Repeat Finding: No
Recommendation: We recommend management should designate one person to review a sample of the new files entering into the program to determine if files were prepared and processed in accordance with internal policies and compliance requirements.
Views of responsible officials: There is no disagreement.
Federal Agency: Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871 and 14.879
Federal Award Identification Number and Year: FL063, 2023
Award Period: April 1, 2022 to March 31, 2023
Type of Finding: Material Weakness in Internal Control over Compliance, Material
Noncompliance (Modified Opinion)
Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. Expect as provided in 24 CFR section 982.203 (Special admission (non-waiting list)), all families admitted to the program must be selected from the waiting list. “Selection from the waiting list generally occurs when the PHA notifies a family whose names reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207).
Condition: During the testing of the Housing Choice Voucher Program tenant files, certain selection from the Waiting List deficiencies were noted as summarized below:
Number of Instances Finding
1 The participant was processed as a regular voucher without being placed on the waiting list. The participant is a mainstream referral but there is no documentation that verifies the classification of the participant as mainstream.
4 The HUD-52578b was missing or where the HUD-52578b was not properly signed by the Authority and tenant.
Questioned Costs: $1,898
Context: Of the 25 tenant files tested, 5 tenant files contained the errors as noted above.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority does not have adequate internal controls over compliance with program requirements.
Repeat Finding: No
Recommendation: We recommend management should designate one person to review a sample of the new files entering into the program to determine if files were prepared and processed in accordance with internal policies and compliance requirements.
Views of responsible officials: There is no disagreement.
Federal Agency: Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871 and 14.879
Federal Award Identification Number and Year: FL063, 2023
Award Period: April 1, 2022 to March 31, 2023
Type of Finding: Material Weakness in Internal Control over Compliance, Material
Noncompliance (Modified Opinion)
Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. Expect as provided in 24 CFR section 982.203 (Special admission (non-waiting list)), all families admitted to the program must be selected from the waiting list. “Selection from the waiting list generally occurs when the PHA notifies a family whose names reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207).
Condition: During the testing of the Housing Choice Voucher Program tenant files, certain selection from the Waiting List deficiencies were noted as summarized below:
Number of Instances Finding
1 The participant was processed as a regular voucher without being placed on the waiting list. The participant is a mainstream referral but there is no documentation that verifies the classification of the participant as mainstream.
4 The HUD-52578b was missing or where the HUD-52578b was not properly signed by the Authority and tenant.
Questioned Costs: $1,898
Context: Of the 25 tenant files tested, 5 tenant files contained the errors as noted above.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority does not have adequate internal controls over compliance with program requirements.
Repeat Finding: No
Recommendation: We recommend management should designate one person to review a sample of the new files entering into the program to determine if files were prepared and processed in accordance with internal policies and compliance requirements.
Views of responsible officials: There is no disagreement.
Federal Agency: Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871 and 14.879
Federal Award Identification Number and Year: FL063, 2023
Award Period: April 1, 2022 to March 31, 2023
Type of Finding: Material Weakness in Internal Control over Compliance, Material
Noncompliance (Modified Opinion)
Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must abate HAP payments beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). In addition, all HCV units are required to be inspected annually.
The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)).
Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted as summarized below:
Failed HQS Inspections
Number of Instances Finding
5 The second inspection was not performed in a timely manner and didn’t follow the correction period of 30 days (range 32-78 days)
4 The Authority did not properly abate HAP after the second failed inspection
Annual HQS Inspections
Number of Instances Finding
5 The annual inspection was performed late.
Questioned Costs: $890
Context: Of the 50 tenant files tested, 13 tenant files contained the errors as noted above.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority does not have adequate procedures in place to ensure units are re-inspected timely and to ensure that units with housing quality standard deficiencies are not paid housing assistance payments.
Repeat Finding: No
Recommendation: We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections.
Views of responsible officials: There is no disagreement.
Federal Agency: Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871 and 14.879
Federal Award Identification Number and Year: FL063, 2023
Award Period: April 1, 2022 to March 31, 2023
Type of Finding: Material Weakness in Internal Control over Compliance, Material
Noncompliance (Modified Opinion)
Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must abate HAP payments beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). In addition, all HCV units are required to be inspected annually.
The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)).
Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted as summarized below:
Failed HQS Inspections
Number of Instances Finding
5 The second inspection was not performed in a timely manner and didn’t follow the correction period of 30 days (range 32-78 days)
4 The Authority did not properly abate HAP after the second failed inspection
Annual HQS Inspections
Number of Instances Finding
5 The annual inspection was performed late.
Questioned Costs: $890
Context: Of the 50 tenant files tested, 13 tenant files contained the errors as noted above.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority does not have adequate procedures in place to ensure units are re-inspected timely and to ensure that units with housing quality standard deficiencies are not paid housing assistance payments.
Repeat Finding: No
Recommendation: We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections.
Views of responsible officials: There is no disagreement.
Federal Agency: Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871 and 14.879
Federal Award Identification Number and Year: FL063, 2023
Award Period: April 1, 2022 to March 31, 2023
Type of Finding: Material Weakness in Internal Control over Compliance, Material
Noncompliance (Modified Opinion)
Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must abate HAP payments beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). In addition, all HCV units are required to be inspected annually.
The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)).
Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted as summarized below:
Failed HQS Inspections
Number of Instances Finding
5 The second inspection was not performed in a timely manner and didn’t follow the correction period of 30 days (range 32-78 days)
4 The Authority did not properly abate HAP after the second failed inspection
Annual HQS Inspections
Number of Instances Finding
5 The annual inspection was performed late.
Questioned Costs: $890
Context: Of the 50 tenant files tested, 13 tenant files contained the errors as noted above.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority does not have adequate procedures in place to ensure units are re-inspected timely and to ensure that units with housing quality standard deficiencies are not paid housing assistance payments.
Repeat Finding: No
Recommendation: We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections.
Views of responsible officials: There is no disagreement.
Federal Agency: Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871 and 14.879
Federal Award Identification Number and Year: FL063, 2023
Award Period: April 1, 2022 to March 31, 2023
Type of Finding: Material Weakness in Internal Control over Compliance, Material
Noncompliance (Modified Opinion)
Criteria or specific requirement: Most PHAs devise their own application forms that are filled out by the PHA staff during an interview with the tenant. The head of the household signs (a) one or more release forms to allow the PHA to obtain information from third parties; (b) a federally prescribed general release form for employment information; and (c) a privacy notice. Under some circumstances, other members of the family are required to sign these forms (24 CFR sections 5.212 and 5.230).
The PHA must do the following:
(1) As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516).
(2) For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516).
(3) Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516).
(5) Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification (24 CFR section 982.516).
Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted. Of the tenant files provided, auditor noted the following items:
Number of Instances Finding
1 The Authority was unable to locate and provide the tenant file
1 The Authority failed to process a move out
1 Contract rent was higher than what was prescribed on the rent reasonableness form
Questioned Costs: $11,471
Context: Of the 25 tenant files tested, 3 tenant files contained the errors as noted above.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority is not in compliance with federal regulations regarding document retention and timely processing of examination.
Repeat Finding: No
Recommendation: We recommend management should designate one person to review a sample of the files that have been recertified each month, to determine if the tenant files were prepared in accordance with internal policies and until the compliance deficiencies have been corrected.
Views of responsible officials: There is no disagreement.
Federal Agency: Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871 and 14.879
Federal Award Identification Number and Year: FL063, 2023
Award Period: April 1, 2022 to March 31, 2023
Type of Finding: Material Weakness in Internal Control over Compliance, Material
Noncompliance (Modified Opinion)
Criteria or specific requirement: Most PHAs devise their own application forms that are filled out by the PHA staff during an interview with the tenant. The head of the household signs (a) one or more release forms to allow the PHA to obtain information from third parties; (b) a federally prescribed general release form for employment information; and (c) a privacy notice. Under some circumstances, other members of the family are required to sign these forms (24 CFR sections 5.212 and 5.230).
The PHA must do the following:
(1) As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516).
(2) For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516).
(3) Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516).
(5) Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification (24 CFR section 982.516).
Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted. Of the tenant files provided, auditor noted the following items:
Number of Instances Finding
1 The Authority was unable to locate and provide the tenant file
1 The Authority failed to process a move out
1 Contract rent was higher than what was prescribed on the rent reasonableness form
Questioned Costs: $11,471
Context: Of the 25 tenant files tested, 3 tenant files contained the errors as noted above.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority is not in compliance with federal regulations regarding document retention and timely processing of examination.
Repeat Finding: No
Recommendation: We recommend management should designate one person to review a sample of the files that have been recertified each month, to determine if the tenant files were prepared in accordance with internal policies and until the compliance deficiencies have been corrected.
Views of responsible officials: There is no disagreement.
Federal Agency: Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871 and 14.879
Federal Award Identification Number and Year: FL063, 2023
Award Period: April 1, 2022 to March 31, 2023
Type of Finding: Material Weakness in Internal Control over Compliance, Material
Noncompliance (Modified Opinion)
Criteria or specific requirement: Most PHAs devise their own application forms that are filled out by the PHA staff during an interview with the tenant. The head of the household signs (a) one or more release forms to allow the PHA to obtain information from third parties; (b) a federally prescribed general release form for employment information; and (c) a privacy notice. Under some circumstances, other members of the family are required to sign these forms (24 CFR sections 5.212 and 5.230).
The PHA must do the following:
(1) As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516).
(2) For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516).
(3) Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516).
(5) Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification (24 CFR section 982.516).
Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted. Of the tenant files provided, auditor noted the following items:
Number of Instances Finding
1 The Authority was unable to locate and provide the tenant file
1 The Authority failed to process a move out
1 Contract rent was higher than what was prescribed on the rent reasonableness form
Questioned Costs: $11,471
Context: Of the 25 tenant files tested, 3 tenant files contained the errors as noted above.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority is not in compliance with federal regulations regarding document retention and timely processing of examination.
Repeat Finding: No
Recommendation: We recommend management should designate one person to review a sample of the files that have been recertified each month, to determine if the tenant files were prepared in accordance with internal policies and until the compliance deficiencies have been corrected.
Views of responsible officials: There is no disagreement.
Federal Agency: Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871 and 14.879
Federal Award Identification Number and Year: FL063, 2023
Award Period: April 1, 2022 to March 31, 2023
Type of Finding: Material Weakness in Internal Control over Compliance, Material
Noncompliance (Modified Opinion)
Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. Expect as provided in 24 CFR section 982.203 (Special admission (non-waiting list)), all families admitted to the program must be selected from the waiting list. “Selection from the waiting list generally occurs when the PHA notifies a family whose names reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207).
Condition: During the testing of the Housing Choice Voucher Program tenant files, certain selection from the Waiting List deficiencies were noted as summarized below:
Number of Instances Finding
1 The participant was processed as a regular voucher without being placed on the waiting list. The participant is a mainstream referral but there is no documentation that verifies the classification of the participant as mainstream.
4 The HUD-52578b was missing or where the HUD-52578b was not properly signed by the Authority and tenant.
Questioned Costs: $1,898
Context: Of the 25 tenant files tested, 5 tenant files contained the errors as noted above.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority does not have adequate internal controls over compliance with program requirements.
Repeat Finding: No
Recommendation: We recommend management should designate one person to review a sample of the new files entering into the program to determine if files were prepared and processed in accordance with internal policies and compliance requirements.
Views of responsible officials: There is no disagreement.
Federal Agency: Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871 and 14.879
Federal Award Identification Number and Year: FL063, 2023
Award Period: April 1, 2022 to March 31, 2023
Type of Finding: Material Weakness in Internal Control over Compliance, Material
Noncompliance (Modified Opinion)
Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. Expect as provided in 24 CFR section 982.203 (Special admission (non-waiting list)), all families admitted to the program must be selected from the waiting list. “Selection from the waiting list generally occurs when the PHA notifies a family whose names reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207).
Condition: During the testing of the Housing Choice Voucher Program tenant files, certain selection from the Waiting List deficiencies were noted as summarized below:
Number of Instances Finding
1 The participant was processed as a regular voucher without being placed on the waiting list. The participant is a mainstream referral but there is no documentation that verifies the classification of the participant as mainstream.
4 The HUD-52578b was missing or where the HUD-52578b was not properly signed by the Authority and tenant.
Questioned Costs: $1,898
Context: Of the 25 tenant files tested, 5 tenant files contained the errors as noted above.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority does not have adequate internal controls over compliance with program requirements.
Repeat Finding: No
Recommendation: We recommend management should designate one person to review a sample of the new files entering into the program to determine if files were prepared and processed in accordance with internal policies and compliance requirements.
Views of responsible officials: There is no disagreement.
Federal Agency: Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871 and 14.879
Federal Award Identification Number and Year: FL063, 2023
Award Period: April 1, 2022 to March 31, 2023
Type of Finding: Material Weakness in Internal Control over Compliance, Material
Noncompliance (Modified Opinion)
Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. Expect as provided in 24 CFR section 982.203 (Special admission (non-waiting list)), all families admitted to the program must be selected from the waiting list. “Selection from the waiting list generally occurs when the PHA notifies a family whose names reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207).
Condition: During the testing of the Housing Choice Voucher Program tenant files, certain selection from the Waiting List deficiencies were noted as summarized below:
Number of Instances Finding
1 The participant was processed as a regular voucher without being placed on the waiting list. The participant is a mainstream referral but there is no documentation that verifies the classification of the participant as mainstream.
4 The HUD-52578b was missing or where the HUD-52578b was not properly signed by the Authority and tenant.
Questioned Costs: $1,898
Context: Of the 25 tenant files tested, 5 tenant files contained the errors as noted above.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority does not have adequate internal controls over compliance with program requirements.
Repeat Finding: No
Recommendation: We recommend management should designate one person to review a sample of the new files entering into the program to determine if files were prepared and processed in accordance with internal policies and compliance requirements.
Views of responsible officials: There is no disagreement.