Finding 1115925 (2024-002)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-03-28
Audit: 350010
Organization: Athens Housing Authority (GA)

AI Summary

  • Core Issue: Seven out of seventy-six tenant files were found noncompliant due to income miscalculations and lack of proper verification methods.
  • Impacted Requirements: Noncompliance with federal regulations regarding income verification and failure to conduct required annual inspections of public housing units.
  • Recommended Follow-Up: Conduct an audit of tenant files for income compliance and ensure annual inspections of housing units are performed timely.

Finding Text

Finding 2024-002 – Low Income Public Housing Tenant Files – Eligibility – Noncompliance & Material Weakness – Public and Indian Housing – ALN #14.850 Criteria: The Code of Federal regulations, the Housing Authority Admissions and Continued Occupancy Policy and specific HUD guidelines for the Low Income Public Housing program. Condition & Cause: We reviewed seventy-six (76) tenant files from the Low Income Public Housing program for various compliance indicators. We found that seven (7) files, or about 9% of the sample, were noncompliant for income-related reasons. Specifically, two (2) files had income miscalculations that did not materially affect the tenants, and five (5) files relied on tenant self-declaration without documenting attempts to gather the preferred third-party verification. We also found that the Authority did not conduct the required annual self-inspections of public housing units during the fiscal year, as mandated by 24 CFR 5.707. Inspections were performed in August 2024, subsequent to fiscal year end and 18 months following the previous inspections. This is consistent with the Authority's low scores on the NSPIRE inspections, which were also conducted subsequent to fiscal year end. We noted that the Agency underwent extensive changes in management during the current fiscal year ended June 30, 2024, which resulted in several staff vacancies, which contributed to the noncompliance. Effect: Improper calculation and verification of annual income can result in inaccurate subsidy amounts, financial burdens on participants, and misstatements in the Authority’s financial statements. Delayed unit inspections increase the risk of unsafe or unsanitary living conditions. These issues lead to noncompliance with regulations and heightened scrutiny from oversight bodies. Recommendation: We recommend that the Agency conduct an audit of existing tenants to determine the extent of noncompliance regarding income calculation and verification. Additionally, the Agency should ensure that units are inspected at least annually. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes

Categories

HUD Housing Programs Eligibility Material Weakness

Other Findings in this Audit

  • 539482 2024-001
    Material Weakness
  • 539483 2024-002
    Material Weakness
  • 539484 2024-003
    Significant Deficiency
  • 1115924 2024-001
    Material Weakness
  • 1115926 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $5.14M
14.872 Public Housing Capital Fund $4.27M
14.239 Home Investment Partnerships Program $2.30M
14.195 Section 8 Housing Assistance Payments Program $885,269
14.218 Community Development Block Grants/entitlement Grants $84,826