A. Finding
Finding 2024-001: Moving to Work Resident Files - Eligibility- Rent Calculations & HAP Disbursements Noncompliance & Significant Deficiency -ALN #14.881
B. Condition & Cause
Twenty (20) HCV tenant-based resident files and twenty (20) HCV project-based resident files were reviewed for a t...
A. Finding
Finding 2024-001: Moving to Work Resident Files - Eligibility- Rent Calculations & HAP Disbursements Noncompliance & Significant Deficiency -ALN #14.881
B. Condition & Cause
Twenty (20) HCV tenant-based resident files and twenty (20) HCV project-based resident files were reviewed for a total of forty (40) Moving to Work resident files reviewed. In the TBV file review, one (1) instance of a resident's income being miscalculated on HUD form 50058 was noted. The Authority understated the resident's income which resulted in a lower rent charge amount than expected. Also in the TBV file review, one (I) instance of the Authority issuing a double payment of HAP funding to a landlord was noted. The total amount of the overpayment was $2,006 which has since been requested back from the property owner.
C. Background Information
Due to organizational restructuring, the HCV Manager moved to the Multi-family Housing department and the new HCV Manager was an internal promotion from within the HCV Department leaving a vacancy in the PBV Caseworker position. In addition, the TBV Caseworker resigned in November 2023 and was replaced by a new staff member in December 2023. The HCV application/in-take position also had turnover during the fiscal year, resulting in a relatively inexperienced HCV staff for a significant portion of the fiscal year. Due to the new staff, HCV has devoted significant resources to train new staff and implement internal control measures to minimize non-compliance and reduce errors; however, the process is still ongoing and will be continually evaluated and adjusted to ensure compliance with HUD's regulatory requirements.
D. Controls to Correct the Deficiency
In an effort to correct the finding noted above, the Auburn Housing Authority (AHA) has implemented and/or will implement the following by FYE2025:
a. HCV Manager will perform a comprehensive audit of tenant files for existing tenants to identify any additional deficiencies and assess the need for staff training.
b. HCV Manager will perform monthly file reviews on all recertifications completed during FYE2025 to identify rent calculation errors and compliance issues and assess the need for staff training.
c. During FYE2025, the Chief Operating Officer (COO) will perform quality controls by randomly selecting departmental files for review.
d. To eliminate HAP Disbursement Errors, monthly HAP Requests will be prepared by the Caseworker and reviewed by the IICV Manager and COO prior to submission to the Chief Executive Officer (CEO) for final review and approval.
e. Other internal control measures to eliminate future audit findings.
E. Person Responsible: Sharon N. Tolbert, CEO
F. Anticipated Completion Date: June 30, 2025