Finding Text
Finding No. 2024-002 – Reporting; Significant Deficiency (HCV Cluster #14.871 and #14.879) CONDITION: During a HUD Compliance Review performed in 2023, the results of several indicators of the Section 8 Management Assessment Program (SEMAP) were changed resulting in the Authority being designated as a Troubled Performer. As of December 31, 2024, The Authority continued its designation of a Troubled Performer. CRITERIA: When the Authority conducts its SEMAP, it should be properly documented how they selected sample sizes and the methods that were used to ensure that the items being tested were properly calculated. QUESTIONED COSTS: The amount of questioned costs could not be determined. CONTEXT: Several indicators were adjusted to reflect a score of 0, resulting in a Troubled Performer designation for fiscal year 2023 and 2024. EFFECT: By not properly conducting and documenting the SEMAP, the Housing Authority is labeled as a Troubled Performer. Additionally, the SEMAP is a good control tool to ensure that the HCV program is being conducted in accordance with HUD regulations. CAUSE: The overall cause was a lack of quality control in performing the SEMAP. RECOMMENDATION: The Housing Authority should develop better internal controls over the performance and documentation of SEMAP or consider outsourcing this to a reputable third party.