Finding 1120909 (2024-005)

2024-005 ALN 14.850 – Public Housing Operating Fund – Special Test - Waiting List Condition and Criteria: For compliance requirements related to selection from the waiting list, Public Housing Operating Fund Program applicants must be selected from the Authority’s waiting list in accordance with the Authority’s applicant selection policies documented in the ACOP and in accordance with federal regulations. Per 24 CFR section 960.202, applicants must be admitted for participation into the Low Rent Program in accordance with HUD regulations and other requirements, including the Authority’s policies stated in the ACOP and the PHA Plan, and that the Authority’s admission policy must state the system of admission preferences the Authority uses in determining the applicant selection order from the waiting list, including preferences such as any residency or other local preferences. . The Authority did not provide sufficient waiting list documentation for the current audit period evidencing whether new tenant move-ins were being admitted in the proper selection order per federal regulations and the tenant selection policies included in the Authority's Admission and Continued Occupancy Policy (“the ACOP”). Amount of Questioned Costs: None Context: The Authority did not provide sufficient waiting list documentation for the current audit period evidencing whether new tenant move-ins were being admitted in the proper selection order per federal regulations and the tenant selection policies included in the Authority's Admission and Continued Occupancy Policy (“the ACOP”). Cause: The Authority failed to maintain an adequate set of internal controls over the waiting list selection process. The Authority failed to maintain documentation of a waitlist. Effect or Potential Effect: Without maintaining a proper waitlist, it is possible that tenants are not being selected in the correct order in accordance with the Authority's Board-approved ACOP. Auditor’s Recommendation: The Authority should have a more effective set of monitoring controls in place to verify that evidence supporting all selected applicants from the waiting list are being documented and retained by the Authority. The Authority should ensure the employees responsible for the waiting list now have the necessary training and understanding of the waiting list process as well as the relevant policies for selecting from the waiting list that are documented in detail in the Board-approved ACOP. Grantee Response: Management acknowledges the finding and will follow the auditor’s recommendation.