Condition
Testing of interfund receivable balances owed to the Low Rent Public Housing (LRPH) programs from the
nonfederal program indicated potential unallowable uses of LRPH grant funds .
Criteria
The Operating Fund is designed to make financial assistance available to PHA's for the operation and
management of public housing . The use of a centralized revolving fund allows the use of one program's
cash to cover expenses of another program which is subsequently reimbursed within a reasonable
amount of time. Inter-program due to and due from balances, not reconciled on a timely basis, indicate
the existence of temporary loans and are unallowable.
Cause
The COCC program had not generated sufficient cash required to reimburse the revolving fund for
expenses incurred on its behalf before the end of the operating cycle.
Effect
It appears LRPH funds in the amount of$616,585 were used to cover costs of non-federal programs. This
is considered an unallowable use of grant funds and may be subject to repayment.
Questioned Costs
$616,585
Recommendation
We recommend the Authority reconcile and settle interfund balances on a monthly basis . In addition , we
recommend the Authority establish controls to restrict interfund transactions for which there is no certainty
of reimbursement before the accounting period cut-off.
Condition
The Authority failed to complete annual recertifications in accordance with its Administrative Plan and
HUD regulations.
Criteria
PHAs are required to reexam ine family income and co mposition at least on ce every twelve (1 2) months
and calcu late tenant rents an d housing assistance pa ymen ts in accordance with 24 CFR 98 2.516 .
Cause
The overall cause was a lack of management oversight and quality control over this program.
Effect
Failure to complete the annual recertification could lead to inappropriate tenant rent and housi ng
assistance payment charges and/or ineligible tenants receiving assistance.
Questioned Costs
Questioned costs were $2 ,226 , the amount of ineligible housing assistance payments received during the
fiscal year.
Context
During audit fieldwork, forty (40) HAP contract files from statistically valid samples were examined for
compliance with annual tenant recertification requirements. Of the 40 HAP files examined, one tenant
failed to complete the annual recertification, and continued to receive housing assistance payments for 8
months subsequent to the renewal date, despite abandoning the unit.
Recommendation
The Authority should implement greater oversight over the Housing Choice Voucher program to ensure
that annual recertifications are completed time ly and accurately.
Condition
The Authority failed to complete annual recertifications in accordance with its Administrative Plan and
HUD regulations.
Criteria
PHAs are required to reexam ine family income and co mposition at least on ce every twelve (1 2) months
and calcu late tenant rents an d housing assistance pa ymen ts in accordance with 24 CFR 98 2.516 .
Cause
The overall cause was a lack of management oversight and quality control over this program.
Effect
Failure to complete the annual recertification could lead to inappropriate tenant rent and housi ng
assistance payment charges and/or ineligible tenants receiving assistance.
Questioned Costs
Questioned costs were $2 ,226 , the amount of ineligible housing assistance payments received during the
fiscal year.
Context
During audit fieldwork, forty (40) HAP contract files from statistically valid samples were examined for
compliance with annual tenant recertification requirements. Of the 40 HAP files examined, one tenant
failed to complete the annual recertification, and continued to receive housing assistance payments for 8
months subsequent to the renewal date, despite abandoning the unit.
Recommendation
The Authority should implement greater oversight over the Housing Choice Voucher program to ensure
that annual recertifications are completed time ly and accurately.
Condition
Testing of interfund receivable balances owed to the Low Rent Public Housing (LRPH) programs from the
nonfederal program indicated potential unallowable uses of LRPH grant funds .
Criteria
The Operating Fund is designed to make financial assistance available to PHA's for the operation and
management of public housing . The use of a centralized revolving fund allows the use of one program's
cash to cover expenses of another program which is subsequently reimbursed within a reasonable
amount of time. Inter-program due to and due from balances, not reconciled on a timely basis, indicate
the existence of temporary loans and are unallowable.
Cause
The COCC program had not generated sufficient cash required to reimburse the revolving fund for
expenses incurred on its behalf before the end of the operating cycle.
Effect
It appears LRPH funds in the amount of$616,585 were used to cover costs of non-federal programs. This
is considered an unallowable use of grant funds and may be subject to repayment.
Questioned Costs
$616,585
Recommendation
We recommend the Authority reconcile and settle interfund balances on a monthly basis . In addition , we
recommend the Authority establish controls to restrict interfund transactions for which there is no certainty
of reimbursement before the accounting period cut-off.
Condition
The Authority failed to complete annual recertifications in accordance with its Administrative Plan and
HUD regulations.
Criteria
PHAs are required to reexam ine family income and co mposition at least on ce every twelve (1 2) months
and calcu late tenant rents an d housing assistance pa ymen ts in accordance with 24 CFR 98 2.516 .
Cause
The overall cause was a lack of management oversight and quality control over this program.
Effect
Failure to complete the annual recertification could lead to inappropriate tenant rent and housi ng
assistance payment charges and/or ineligible tenants receiving assistance.
Questioned Costs
Questioned costs were $2 ,226 , the amount of ineligible housing assistance payments received during the
fiscal year.
Context
During audit fieldwork, forty (40) HAP contract files from statistically valid samples were examined for
compliance with annual tenant recertification requirements. Of the 40 HAP files examined, one tenant
failed to complete the annual recertification, and continued to receive housing assistance payments for 8
months subsequent to the renewal date, despite abandoning the unit.
Recommendation
The Authority should implement greater oversight over the Housing Choice Voucher program to ensure
that annual recertifications are completed time ly and accurately.
Condition
The Authority failed to complete annual recertifications in accordance with its Administrative Plan and
HUD regulations.
Criteria
PHAs are required to reexam ine family income and co mposition at least on ce every twelve (1 2) months
and calcu late tenant rents an d housing assistance pa ymen ts in accordance with 24 CFR 98 2.516 .
Cause
The overall cause was a lack of management oversight and quality control over this program.
Effect
Failure to complete the annual recertification could lead to inappropriate tenant rent and housi ng
assistance payment charges and/or ineligible tenants receiving assistance.
Questioned Costs
Questioned costs were $2 ,226 , the amount of ineligible housing assistance payments received during the
fiscal year.
Context
During audit fieldwork, forty (40) HAP contract files from statistically valid samples were examined for
compliance with annual tenant recertification requirements. Of the 40 HAP files examined, one tenant
failed to complete the annual recertification, and continued to receive housing assistance payments for 8
months subsequent to the renewal date, despite abandoning the unit.
Recommendation
The Authority should implement greater oversight over the Housing Choice Voucher program to ensure
that annual recertifications are completed time ly and accurately.