Finding 1148511 (2024-001)

Person to Contact Regarding Findings: Wendy Fromm Section III – Federal Awards Findings and Questioned Costs 2024-001 Finding – Internal control over compliance Federal Program: Section 8 Project-Based Cluster: Section 8 Housing Assistance Payments Program - CFDA #14.195 and Lower Income Housing Assistance Program – Section 8 Moderate Rehabilitation – CFDA #14.856 Federal Agency: U.S. Department of Housing and Urban Development Award Period: 2024 Identification as a repeat finding This was not a repeat finding. Criteria Management is responsible for the design, implementation, and maintenance of a system of internal control over compliance that will ensure compliance related items such as the Tenant Selection Plan are updated in accordance with HUD guidelines. Statement of condition The Authority’s system of internal control over compliance did not prevent or timely detect that the Tenant Selection Plan had not been completed on or prior to May 31, 2024. Cause The monitoring controls in place over the Tenant Selection Plan did not detect that the plan was not timely updated in accordance with HUD guidelines. Effect The tenant selection plan utilized by management after May 31, 2024, was not in compliance with HUD requirements. Questioned costs $0 View of responsible officials The tenant selection plan was prepared in draft format prior to May 31, 2024, however, not approved by the Board of Commissioners until June 24, 2024, at which time it was fully implemented. Management plans to use the recommendation of the auditors. Context The tenant selection plan was required by HUD to be updated on or prior to May 31, 2024, to include the new provisions of HOTMA. Recommendation Management should add additional controls to ensure that the tenant selection plan is updated in accordance with HUD guidelines.