Finding 1149044 (2024-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-08-05

AI Summary

  • Core Issue: Deficiencies in tenant file documentation and compliance with HUD requirements were identified in both MTW Vouchers and Low Rent Public Housing.
  • Impacted Requirements: Internal controls related to eligibility verification, income documentation, and timely unit inspections are not being followed, violating 24 CFR regulations.
  • Recommended Follow-Up: The Authority should reassess and strengthen procedures to ensure compliance, address the noted deficiencies, and evaluate the impact on the entire tenant file population.

Finding Text

Condition: Out of an approximate population of 2,396 of MTW Vouchers and 170 Low Rent Public Housing tenants the following deficiencies were noted: MTW Housing Choice Voucher (a total of 36 tenants selected for testing): • Two files did not use the correct utility allowance, • Two files did not have support necessary to verify income exemptions, • One file did not have documentation necessary to verify the reported income, • One file did not have 9886 release of information from within 15 months of the annual recertification, • Three files did not have a 214 declaration for a member of the household, and • Two files did not have identification documents Low Rent Public Housing (a total of 8 tenants selected for testing): • Seven files did not contain evidence of timely unit inspections being performed. • One file did not have documentation necessary to verify the reported income, and • Three files did not have 9886 release of information from within 15 months of the annual recertification Criteria: The Authority’s ACOP, Administrative Plan, 24 CFR 960.259, and 24 CFR 982.516 require internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. In addition, 24 CFR 5.705 requires each unit be periodically inspected. Context: The auditor randomly selected tenant files out of the population from each program as outlined, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Commission is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority does not have adequate systems and controls in place to ensure all eligibility requirements are being followed and units are being inspected timely Effect: The Authority is not in compliance with all of the HUD requirements regarding eligibility and tenant recertification which could result in incorrect amount of rental assistance being provided. Questioned Costs: Unknown. Auditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility and inspections performed. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. Management Response: See Corrective Action Plan.

Categories

HUD Housing Programs Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

  • 572602 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.881 Moving to Work Demonstration Program $36.97M
14.871 Housing Choice Voucher Program $5.12M
14.879 Mainstream Vouchers $1.25M
21.023 Emergency Rental Assistance Program $1.08M
14.871 Emergency Housing Voucher $1.01M
93.558 Transitional Assistance to Needy Families $575,565
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $505,466
14.856 Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation $81,913
14.251 Drgr Human Rights Housing Project $19,095