Finding 1155725 (2024-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-09-26

AI Summary

  • Core Issue: Late annual recertifications and inadequate income documentation were found, impacting eligibility determinations.
  • Impacted Requirements: PHAs must verify participant income annually to calculate rent and housing assistance accurately.
  • Recommended Follow-Up: Address staff workload and improve document workflow to ensure timely completion of tasks.

Finding Text

2024-001 – Eligibility – Moving to Work Demonstration Program - 14.881 Significant Deficiency Statement of Condition and Criteria The audit noted instances of late annual recertifications and insufficient income documentation. PHA’s are required to determine income eligibility, calculate participant rent and housing assistance payments on an annual basis using verified participant income documentation. Cause Significant staff turnover in the prior year as well as ongoing corrections to prior compliance issues. Effect or Potential Effect Potential overpayment of Housing Assistance Payments Context A sample of 40 files were selected to audit program eligibility from a population of 3,089. The test found 3 files noted late annual recertifications and 3 files with old or incorrect income documentation. Recommendation We recommend the Authority continue its work in addressing staff workload and review document workflow to ensure tasks are carried out through completion. Management’s Response Management agrees with the finding and corrective action is in progress as detailed in the Corrective Action Plan.

Corrective Action Plan

The initial eligibility determinations are currently handled by the HCV department and are centralized. It has been determined that considerable investment in staff training has been made during the past twelve months. As a result, there has been staff turnover, some at the decision of TGHA, and some at the decision of staff. Initial eligibility is currently being restructured with an emphasis on new admissions. All procedures and processes are being evaluated for accuracy, with emphasis on the noted area of noncompliance and includes a complete review and update to the Administrative Plan. There will be increased staff training and file review. In July 2024, TGHA transitioned project-based files from a property management team to the Housing Choice Voucher Department. The files had not been electronically stored. Evidence pointed to deficiencies in file maintenance. TGHA has hired temporary staff for an extended period to focus on file organization and to correct documentation deficiencies. All HCV staff have completed Rent Calculation courses provided by NAHRO or Nan McKay during the fiscal year. There have been two managers hired for the department, one exclusively for project-based vouchers. Both attended NAHRO supervisory training in September. There will be an intensive focus on program integrity throughout the programs, including staff capability, training and monitoring. TGHA has contracted with a professional recruiter to assist in hiring a Director of the HCV and MTW programs. Recertification transactions will be monitored on a monthly basis. This will include validation of calculations and verification of correct documentation. TGHA files were fully in order by July 2025.

Categories

HUD Housing Programs Eligibility Significant Deficiency Matching / Level of Effort / Earmarking

Programs in Audit

ALN Program Name Expenditures
14.881 Moving to Work Demonstration Program $31.31M
14.871 Section 8 Housing Choice Vouchers $1.66M
14.896 Family Self-Sufficiency Program $165,648
14.879 Mainstream Vouchers $159,256