Finding 1153455 (2024-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-09-19
Audit: 366705
Organization: Bladenboro Housing Authority (NC)

AI Summary

  • Core Issue: The Authority failed to follow internal controls for tenant eligibility, leading to incomplete documentation.
  • Impacted Requirements: Non-compliance with 24 CFR 982-516 regarding tenant file accuracy and eligibility documentation.
  • Recommended Follow-Up: Continue monthly reviews of tenant recertifications to ensure compliance with eligibility and reporting requirements.

Finding Text

2024-001 Federal Agency: U. S. Department of Housing and Urban Development Federal program: Public and Indian Housing ALN: 14.871 Award Period: 01/01/24-12/31/24 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: None Context: Testing of 25 tenant files identified an exception in 2 files as follows: • 2 files did not contain proper documentation of the Section 214 Declaration of Citizenship form. Cause: The Authority did not obtain Section 214 form upon intake. Effect: The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: None Recommendation: I recommend that the Authority continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions: Management agrees with this finding. We have reviewed the intake procedure and will continue to review recertifications.

Corrective Action Plan

Bladenboro Housing Authority Corrective Action Plan For the Year Ended December 31, 2024 Section II - Financial Statement Findings None Reported Section III - Federal Award Findings and Questioned Costs Finding 2024-001 Name of Contact Person: Becky Tatum Interim Director Corrective Action: Management will implement proper internal control procedures for the Public and Indian Housing program eligibility requirements. Proposed Completion Date: Immediately

Categories

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

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $305,860
14.872 Public Housing Capital Fund $222,583
14.871 Section 8 Housing Choice Vouchers $40,821