Finding 1056519 (2023-005)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-07-31
Audit: 316361
Organization: St Bernard Parish Government (LA)
Auditor: Eisneramper LLP

AI Summary

  • Core Issue: An applicant received Section 8 benefits despite not meeting the Parish's stricter income eligibility criteria due to a management override.
  • Impacted Requirements: The Parish's internal controls for verifying income eligibility are inadequate, risking approval of ineligible applicants.
  • Recommended Follow-Up: The Parish should revise its policies and procedures to ensure all income factors are properly considered in eligibility determinations.

Finding Text

Criteria: Requirements of eligibility for the Section 8 Housing Choice Vouchers include certain eligibility criteria that must be met by applicants to the program. The public housing authority (the Parish) verifies a family’s eligibility (including income eligibility) as part of the acceptance process into the program. Condition: Upon review and verification of an applicant’s income eligibility, it was determined by the Parish that the applicant did not meet income eligibility thresholds set by the Parish, which are more restrictive than the federal income eligibility requirements. Upon interviewing staff, it was discovered that the former Housing Coordinator instructed an employee to exclude the applicant’s bonus from consideration when determining the applicant’s income. As a result of this override of controls, the individual received benefits even though they did not meet the Parish’s requirements. The individual did meet the federal requirements. Questioned Costs: Unknown. Cause: A significant deficiency exists in the internal controls over income eligibility determination, including consideration of management override of controls. Effect: While the applicant in this instance met the federal Section 8 program’s eligibility criteria, there is potential that ineligible applicants have and will be approved by the Parish without further action to address this issue. Recommendation: The Parish should review its policies and procedures in place to ensure that appropriate factors are being considered in income eligibility determination. View of Responsible Official: See the corrective action plan provided by the Parish.

Categories

HUD Housing Programs Eligibility Significant Deficiency

Other Findings in this Audit

  • 480076 2023-004
    Material Weakness Repeat
  • 480077 2023-005
    Significant Deficiency
  • 480078 2023-006
    -
  • 1056518 2023-004
    Material Weakness Repeat
  • 1056520 2023-006
    -

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $5.90M
15.435 Gomesa $2.67M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $995,418
66.468 Capitalization Grants for Drinking Water State Revolving Funds $867,589
21.027 Coronavirus State and Local Fiscal Recovery Funds $687,138
93.568 Low-Income Home Energy Assistance $672,790
17.259 Wia Youth Activities $642,296
93.569 Community Services Block Grant $514,306
17.277 Workforce Investment Act (wia) National Emergency Grants $367,919
66.458 Capitalization Grants for Clean Water State Revolving Funds $280,941
20.507 Federal Transit_formula Grants $265,360
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $194,587
17.258 Wia Adult Program $188,580
17.278 Wia Dislocated Worker Formula Grants $151,514
66.125 Lake Pontchartrain Basin Restoration Program (prp) $54,803
11.419 Coastal Zone Management Administration Awards $38,641
97.042 Emergency Management Performance Grants $26,134
14.218 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $22,467
21.015 Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States $19,750
97.067 Homeland Security Grant Program $17,607
97.039 Hazard Mitigation Grant $14,409
93.069 Public Health Emergency Preparedness $12,457