Finding 1156331 (2024-002)

Material Weakness Repeat Finding
Requirement
EN
Questioned Costs
-
Year
2024
Accepted
2025-09-29
Audit: 368623
Organization: Rensselaer Housing Authority (NY)
Auditor: Rbt CPAS LLP

AI Summary

  • Core Issue: The Authority lacks proper controls over key areas like Eligibility and Rent, risking compliance with federal requirements.
  • Impacted Requirements: Failure to maintain internal controls can lead to potential funding loss and repeat compliance issues.
  • Recommended Follow-Up: Implement a checklist for Housing Coordinators during recertification to document compliance efforts effectively.

Finding Text

2024-002 – Documentation of Controls U.S. Department of Housing and Urban Development 14.871 – Section 8 Housing Choice Vouchers E. Eligibility and N. Special Tests and Provisions – Significant Deficiency Condition: During review of the Housing Choice Voucher tenant files, RBT noted that the Authority did not establish appropriate controls over Eligibility, Reasonable Rent, Utility Allowance, and HQS Inspections. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority did not establish controls over Eligibility, Reasonable Rent, Utility Allowance, and HQS Inspections. Effect: Potential loss of funding due to noncompliance or additional noncompliance if a control is missed. Questioned Costs: None identified. Perspective: Although the Authority was in compliance with noted compliance attributes, none of the 19 tenant files selected for testing contained documentation of the internal controls performed. Repeat Finding: This is a repeat of finding 2023-001. Recommendation: RBT recommends the Authority establish a checklist for the Housing Coordinators to use during the recertification process to ensure all compliance requirements are met. The checklist should be signed or initialed by the Housing Coordinator preparing the checklist and a reviewer and maintained in the tenant’s file. This checklist will serve as documentation that all compliance requirements were verified for the tenant. Auditee’s Response: See corrective action plan.

Corrective Action Plan

The Rensselaer Housing Authority (RHA) has already implemented a check list to ensure tenant files are organized and reviewed by another employee and signed off as completed. Planned implementation Date of Corrective Action: Already in effect Person Responsible for Corrective Action:: Stacey Sabiani, Executive Director

Categories

HUD Housing Programs Special Tests & Provisions

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $698,694
14.850 Public Housing Operating Fund $542,908
14.872 Public Housing Capital Fund $372,712