Finding 1114472 (2024-004)

Finding 2024-004 – Public Housing Waiting Lists – Special Tests and Provisions – Noncompliance & Material Weakness – Public and Indian Housing – ALN #14.850 Condition & Cause: We selected three (3) tenants admitted into the Public Housing program during the audit period for review. We found that for two (2) of these tenants, the local preferences used to determine their position on the waiting list were not verified. This could be linked to the ongoing staff turnover in recent years. During the audit period, the Agency had three different Executive Directors and three different Public Housing Specialists. For the remaining tenant, the Authority was unable to produce readily available documentation for review. Upon further investigation, we found the tenant in question is an immediate family member of a staff member and was allegedly admitted into the program based on this conflict of interest. We have included the subsidized portion of this tenant’s rent during the fiscal year as questioned costs. Criteria: The Code of Federal Regulations and the Housing Authority’s Admissions and Continued Occupancy Policy. Effect: Failure to verify claimed preferences could result in applicants being housed out of order. The absence of a proper audit trail for the waiting list could raise concerns about transparency, fairness, and compliance with federal requirements. Bypassing admission controls compromises the integrity of the program and puts the Agency at risk for scrutiny from regulatory bodies. Recommendation: We recommend that the Agency implement a standardized procedure for maintaining complete and accurate documentation for the ranking, selection, and removal of applicants from the Public Housing waiting list. Questioned Costs: $1,326 Repeat Finding: No Was sampling statistically valid? Yes