Finding 1156763 (2024-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
$1
Year
2024
Accepted
2025-09-30

AI Summary

  • Core Issue: The Agency failed to reexamine family income and composition annually, leading to noncompliance with HUD regulations.
  • Impacted Requirements: The requirement to conduct annual recertifications within 12 months was not met, affecting 23 out of 60 tested files.
  • Recommended Follow-Up: Implement a quality control review of tenant files each month to ensure compliance and address deficiencies.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: CA007 2024 Award Period: January 1, 2024 – December 31, 2024 Type of Finding: - Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria or Specific Requirement: Eligibility The PHA must reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification (24 CFR section 982.516). Condition: The Agency did not have adequate internal controls designed to ensure that reexaminations of family income and composition were performed at least once every 12 months. Questioned Costs: $251,056 Context: Testing of 60 HCVP files indicated that 23 instances where the annual recertification was not processed within regulatory period of 12 months. Cause: The Agency failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Effect: The Agency is not in compliance with federal regulations regarding the recertification of household circumstances within 12 months. Repeat Finding: Yes, (2023-002) Recommendation: We recommend that management should implement a quality control review over a sampling of tenant files recertified each month. The purpose of the review is to determine if the tenant files were prepared in accordance with internal policies and verify the compliance deficiencies have been corrected. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

Housing Choice Voucher Cluster – Assistance Listing No. 14.871/14.879 Recommendation: We recommend that management should implement a quality control review over a sampling of tenant files recertified each month. The purpose of the review is to determine if the tenant files were prepared in accordance with internal policies and verify the compliance deficiencies have been corrected. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We would like to provide additional context. The challenge is not due to a lack of monitoring efforts, but rather staffing constraints that have impacted our ability to meet recertification timelines. Specifically, the Agency is currently operating with an insufficient number of staff to manage the full caseload effectively. Additionally, a significant portion of the team responsible for processing recertifications consists of new hires who are still in training and not yet able to carry a full workload, which has temporarily reduced the overall output of the team. In response, we are actively working to streamline internal processes, prioritize core functions, and improve overall operational efficiency. These efforts are intended to increase the number of timely recertifications completed and ensure compliance with HUD requirements moving forward. Name(s) of the contact person(s) responsible for corrective action: MaryLiz Paulson, Director, Housing Choice Vouchers Planned completion date for corrective action plan:: December 31, 2025

Categories

Questioned Costs HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1156761 2024-002
    Material Weakness Repeat
  • 1156762 2024-002
    Material Weakness Repeat
  • 1156764 2024-003
    Material Weakness Repeat
  • 1156765 2024-003
    Material Weakness Repeat
  • 1156766 2024-003
    Material Weakness Repeat
  • 1156767 2024-004
    Material Weakness Repeat
  • 1156768 2024-004
    Material Weakness Repeat
  • 1156769 2024-004
    Material Weakness Repeat
  • 1156770 2024-005
    Material Weakness Repeat
  • 1156771 2024-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $139.99M
14.850 Public Housing Operating Fund $9.52M
14.871 Section 8 Housing Choice Vouchers $9.01M
21.023 Emergency Rental Assistance Program $8.29M
14.872 Public Housing Capital Fund $8.00M
21.027 Coronavirus State and Local Fiscal Recovery Funds $6.60M
14.267 Continuum of Care Program $6.00M
14.879 Mainstream Vouchers $4.05M
14.241 Housing Opportunities for Persons with Aids $1.83M
14.218 Community Development Block Grants/entitlement Grants $1.59M
14.231 Emergency Solutions Grant Program $939,385
14.896 Family Self-Sufficiency Program $189,089
14.870 Resident Opportunity and Supportive Services - Service Coordinators $180,111
14.900 Lead Hazard Reduction Grant Program $178,109
14.856 Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation $132,083