Finding 1136386 (2023-006)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2025-05-08

AI Summary

  • Core Issue: Tenant files for Low Rent Public Housing lacked necessary documentation, including waitlist information and signed forms.
  • Impacted Requirements: Recertification every 12 months and proper tenant selection documentation were not followed.
  • Recommended Follow-Up: Implement a checklist for required documents in each tenant file and ensure compliance with new policies and procedures.

Finding Text

Criteria:Tenant files for Low Rent Public Housing are required to undergo recertification every 12 months and include a list of required forms signed by the tenant. In addition, each tenant file should have documentation showing that they were included on a wait list and how their selection was made. Condition:Of the tenant files examined for testing, seven tenants had moved in during the year of the audit and none of them contained documentation relating to the wait list and how they were selected. In addition, one tenant file was missing signed forms relating to privacy and release authorization forms. Effect:Required procedures for tenant selection and maintaining of tenant documentation were not being followed. Cause: Lack of oversight by management and the Board. Recommendation:A checklist of required documentation should be included in each tenant file to ensure all forms are included and properly signed. In addition, a copy of the applicable waitlist included selection process should be with each tenant file.Views of Responsible Officials and Planned Corrective Actions:We agree with the auditors' comments, and the following action will be taken to improve the situation. This situation was created when the previous administration failed to maintain all tenant records in accordance with HUD/CFR requirements. KMHA has taken the following actions.1. KMHA's Board has approved new written Tenant policies and procedures, to include a new ACOP (CFR 960), and are in place now.2. Appropriate staff have begun taking proper safeguards to ensure a waiting list is in place and utilized, each tenant application is filed and proper action taken and tenant files are properly maintained and complete. A checklist is placed inside each tenant file to assist in completeness.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 559939 2023-001
    Material Weakness
  • 559940 2023-002
    Material Weakness
  • 559941 2023-003
    Material Weakness
  • 559942 2023-004
    Material Weakness
  • 559943 2023-005
    Material Weakness
  • 559944 2023-006
    Material Weakness
  • 559945 2023-007
    Material Weakness
  • 1136381 2023-001
    Material Weakness
  • 1136382 2023-002
    Material Weakness
  • 1136383 2023-003
    Material Weakness
  • 1136384 2023-004
    Material Weakness
  • 1136385 2023-005
    Material Weakness
  • 1136387 2023-007
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $1.59M
14.850 Public Housing Operating Fund $566,741