Action Taken: Management acknowledges the findings and the material weakness in internal control and material noncompliance in allowability and eligibility. We accept responsibility for the deficiencies in internal control over allowability and eligibility and are committed to implementing correctiv...
Action Taken: Management acknowledges the findings and the material weakness in internal control and material noncompliance in allowability and eligibility. We accept responsibility for the deficiencies in internal control over allowability and eligibility and are committed to implementing corrective actions that address missing documentation and lack of verifiable procurement procedures to ensure compliance. • Immediate File Correction & Review: Correct all identified deficiencies in the sampled files. Furthermore, a 100% review of the remaining -335 files must be conducted to identify if these errors are systematic [1.1]. • Repayment and Re-calculation: For files with incorrect income, utility allowance, or payment standards, the Authority must recalculate the Housing Assistance Payments (HAP) and determine if repayments to HUD are necessary. • Strengthen Internal Controls: • Implement a File Checklist: Require a mandatory, signed checklist for all new admissions and annual recertifications to ensure all 214 forms, 9886 forms, income verifications, and ID documentation are present. • Supervisory Review: Implement a mandatory, independent supervisory review of a percentage of files before HAP payments are authorized. • Inspection Tracking System: Utilize automated tools to track HQS inspection dates to prevent late or missed inspections. • Training: Provide staff training on HUD eligibility, income verification, and rent calculation procedures, specifically focusing on the requirements in 24 CFR Part 5. Name of Responsible Person: Catherine Lamberg, CEO, and Jackie Otto, COO, and Daporsha Abernathy, HCVP Director Projected Completion Date: Some of the corrective activities are underway. We anticipate completing these activities by June 1, 2026.