Finding 1142466 (2024-007)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-06-24

AI Summary

  • Core Issue: Two tenant files tested showed eligibility deficiencies, including lack of income support for a college student and overdue annual inspections.
  • Impacted Requirements: Compliance with HUD regulations on tenant income verification and documentation is not being met.
  • Recommended Follow-Up: Assign a dedicated reviewer for monthly file checks and consider hiring external consultants or increasing staff to address compliance issues.

Finding Text

Finding 2024 – 007 – Eligibility Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Opportunities for Persons with Aids Assistance Listing Numbers: 14.241 Federal Award Identification Number and Year: FL080; 2024 Award Period: October 1, 2023 to September 30, 2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Noncompliance (Other Matters) Criteria or Specific Requirement: A person eligible for assistance under this program means a person with HIV or AIDS who is a low-income individual and the person’s family, including persons important to their care or well-being, as defined in 24 CFR section 574.3. The eligibility of those tenants who were admitted to the program should be determined by (1) obtaining applications that contain all the information needed to determine eligibility, including diagnosis, documentation of housing need, income, rent and order of selection; and (2) obtaining third-party verifications or documentation of expected income, assets, unusual medical expenses, and any other pertinent information. Condition: During the testing of the HOPWA files, certain eligibility deficiencies were noted as summarized below: Number of Instances Finding 1 There was no support for excluding the income of a full-time college student for the recertification date tested 1 The annual inspection was not performed within a year. Questioned Costs: Undeterminable Context: Out of 29 HOPWA tenant files tested, 2 tenant files contained errors as noted above. Cause: The Authority failed to provide adequate monitoring and oversight of their tenant files to ensure compliance with HUD rules and regulations as well as their administrative policy. Effect: The Authority is not in compliance with federal regulations regarding the verification of the tenants income and maintaining adequate documents per the compliance requirements. Repeat Finding: No. Recommendation: We recommend management should designate one person to review a sample of the files that have been recertified each month and to determine if the tenant files were prepared in accordance with internal policies and until the compliance deficiencies have been corrected. We recommend the Authority to hire outside consultants to assist with eligibility requirements or increase staffing in this area. Views of Responsible Officials: There is no disagreement with the audit finding.

Categories

Internal Control / Segregation of Duties Subrecipient Monitoring Eligibility HUD Housing Programs Significant Deficiency

Other Findings in this Audit

  • 566008 2024-001
    Material Weakness Repeat
  • 566009 2024-001
    Material Weakness Repeat
  • 566010 2024-001
    Material Weakness Repeat
  • 566011 2024-002
    Significant Deficiency Repeat
  • 566012 2024-002
    Significant Deficiency Repeat
  • 566013 2024-002
    Significant Deficiency Repeat
  • 566014 2024-003
    Significant Deficiency Repeat
  • 566015 2024-003
    Significant Deficiency Repeat
  • 566016 2024-003
    Significant Deficiency Repeat
  • 566017 2024-004
    Significant Deficiency Repeat
  • 566018 2024-004
    Significant Deficiency Repeat
  • 566019 2024-004
    Significant Deficiency Repeat
  • 566020 2024-005
    Significant Deficiency Repeat
  • 566021 2024-005
    Significant Deficiency Repeat
  • 566022 2024-005
    Significant Deficiency Repeat
  • 566023 2024-006
    Significant Deficiency Repeat
  • 566024 2024-007
    Significant Deficiency
  • 1142450 2024-001
    Material Weakness Repeat
  • 1142451 2024-001
    Material Weakness Repeat
  • 1142452 2024-001
    Material Weakness Repeat
  • 1142453 2024-002
    Significant Deficiency Repeat
  • 1142454 2024-002
    Significant Deficiency Repeat
  • 1142455 2024-002
    Significant Deficiency Repeat
  • 1142456 2024-003
    Significant Deficiency Repeat
  • 1142457 2024-003
    Significant Deficiency Repeat
  • 1142458 2024-003
    Significant Deficiency Repeat
  • 1142459 2024-004
    Significant Deficiency Repeat
  • 1142460 2024-004
    Significant Deficiency Repeat
  • 1142461 2024-004
    Significant Deficiency Repeat
  • 1142462 2024-005
    Significant Deficiency Repeat
  • 1142463 2024-005
    Significant Deficiency Repeat
  • 1142464 2024-005
    Significant Deficiency Repeat
  • 1142465 2024-006
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $40.81M
14.879 Mainstream Vouchers $4.46M
14.241 Housing Opportunities for Persons with Aids $3.56M
14.850 Public Housing Operating Fund $1.75M
14.871 Emergency Housing Vouchers $1.48M
14.872 Public Housing Capital Fund $946,341
14.895 Jobs-Plus Pilot Initiative $690,328
17.274 Youthbuild $389,862
14.896 Family Self-Sufficiency Program $140,985
14.870 Resident Opportunity and Supportive Services - Service Coordinators $83,755