Finding 2023-001:
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles:
Housing Voucher Cluster
- Section 8 Housing Choice Vouchers
- Mainstream Vouchers
- Emergency Housing Vouchers
Assistance Listing Numbers: 14.871, 14.879, 14.EHV
Noncompliance – E. Eli...
Finding 2023-001:
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles:
Housing Voucher Cluster
- Section 8 Housing Choice Vouchers
- Mainstream Vouchers
- Emergency Housing Vouchers
Assistance Listing Numbers: 14.871, 14.879, 14.EHV
Noncompliance – E. Eligibility – Tenant Files
Non Compliance Material to the Financial Statements:
Housing Voucher Cluster
- Section 8 Housing Choice Vouchers - Yes
- Mainstream Vouchers - Yes
- Emergency Housing Vouchers - No
Finding 2023-001 (continued):
Material Weakness and Significant Deficiency in Internal Control over Compliance for Eligibility
Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit.
Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit.
Context: There are approximately 2,434 units. Of a sample size of fifty-six (56) tenant files, the following was noted:
• HUD form 9886 was unable to be provided in 4 files
• Verification of income was unable to be provided in 5 files
• Verification of assets was unable to be provided in 4 files
• HUD 50058 annual recertification was not filed timely in 8 files
• Original Application was unable to be provided in 12 files
• Citizen Declaration Section 214 form was unable to be provided in 2 files
• Lead based paint form was unable to be provided in 16 files
• Signed lease was unable to be provided in 6 files
• Our sample size is statistically valid.
Known Questioned Costs:
• 14.871 - Section 8 Housing Choice Vouchers - $65,025
• 14.879 - Mainstream Vouchers - $31,974
• 14.EHV - Emergency Housing Vouchers - $14,095
Cause: There is a material weakness in the Section 8 Housing Choice Vouchers and Mainstream Vouchers programs and a significant deficiency in the Emergency Housing Vouchers program in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance.
Effect: The Section 8 Housing Choice Vouchers and Mainstream Vouchers programs are in material non-compliance, and the Emergency Housing Vouchers program is in non-compliance with the eligibility type of compliance related to the maintenance of tenant files.
Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement.
Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Housing Voucher Cluster to ensure that established internal control policies are being followed on a timely basis. Kathleen Wyatt, Director of Housing Operations, will be responsible to implement this corrective action by December 31, 2024.