Finding 1074821 (2023-003)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-09-26
Audit: 321116
Organization: Gloversville Housing Authority (RI)
Auditor: Marcum LLP

AI Summary

  • Core Issue: The Authority failed to provide tenant files for 6 selected tenants, impacting compliance with annual reexamination requirements.
  • Impacted Requirements: The Authority did not properly verify family income and composition, leading to potential inaccuracies in rent calculations and housing assistance payments.
  • Recommended Follow-Up: Management should enhance oversight, review policies, and provide training on reexamination procedures to ensure compliance.

Finding Text

2023-003 – ELIGIBILITY Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.871/14.879 – Housing Voucher Cluster CRITERIA PHA responsibility for reexamination and verification. (1) The PHA must conduct a reexamination of family income and composition at least annually. (2) The PHA must obtain and document in the tenant file third-party verification of the following factors, or must document in the tenant file why third-party verification was not available: (i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income. (24 CFR 982.516) CONDITION The Authority did not provide tenant files for 6 tenants selected. CAUSE The Authority did not properly oversee the administration of the Housing Choice Voucher and Mainstream Voucher programs. EFFECT The Authority is potentially incorrectly calculating and adjusting tenant rent and housing assistance payments. QUESTIONED COSTS None noted. CONTEXT We selected a sample of 40 from a population of 243. This was not a statistically valid sample. REPEAT FINDING See finding 2022-003. RECOMMENDATION We recommend the Authority’s management take an active role in reviewing their policies and monitoring the Authority’s compliance with those policies. We recommend the Authority provide training for the performance of reexamination procedures. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.

Categories

HUD Housing Programs Subrecipient Monitoring Eligibility Material Weakness

Other Findings in this Audit

  • 498379 2023-003
    Material Weakness Repeat
  • 498380 2023-003
    Material Weakness Repeat
  • 498381 2023-004
    Material Weakness Repeat
  • 498382 2023-004
    Material Weakness Repeat
  • 498383 2023-005
    Material Weakness Repeat
  • 498384 2023-006
    Material Weakness Repeat
  • 498385 2023-006
    Material Weakness Repeat
  • 1074822 2023-003
    Material Weakness Repeat
  • 1074823 2023-004
    Material Weakness Repeat
  • 1074824 2023-004
    Material Weakness Repeat
  • 1074825 2023-005
    Material Weakness Repeat
  • 1074826 2023-006
    Material Weakness Repeat
  • 1074827 2023-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.17M
14.872 Public Housing Capital Fund $1.05M
14.850 Public Housing Operating Fund $923,658
14.879 Mainstream Vouchers $142,130
14.896 Family Self-Sufficiency Program $104,633