Finding 1157053 (2024-005)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-09-30

AI Summary

  • Core Issue: The Housing Voucher Cluster is not following proper procedures for selecting applicants from the waiting list, leading to potential non-compliance.
  • Impacted Requirements: The PHA must have clear written policies in its Section 8 Administrative Plan and must adhere to these when selecting applicants.
  • Recommended Follow-Up: Implement stronger internal controls to ensure compliance with selection procedures as outlined in the Uniform Guidance.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs Federal Catalog Numbers: 14.871 and 14.879 Noncompliance – N. Special Tests and Provisions - Selection from the Waiting List Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Selection from the Waiting List. The PHA must have written policies in its Section 8 Administrative Plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants from the waiting list. Except for as provided in 24 CFR section 982.203 (Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: Based upon inspection of the waiting list provided to us during the time of audit, the new move-in list and discussions with management, it could not be determined with any certainty that certain new move-ins to the Housing Voucher Cluster programs were either selected from the wait list in an order or housed through the special admission criteria that is in accordance with the Authority’s Section 8 Administrative Plan Context: There are approximately thirty eight (38) new move-ins. Of a sample size of four (4) files, one (1) move-in could not be determined to be housed in proper order from the Authority's wait list or housed through the special admission criteria. Our sample size is statistically valid. Known Questioned Costs: Amount is below threshold of $25,000. Cause: There is a significant deficiency for the Housing Voucher Cluster in internal controls over the compliance for the special tests and provisions type of compliance related to selection from the waiting list. The Authority has not properly housed applicants in compliance with program requirements. Effect: The Housing Voucher Cluster is in non-compliance with the special tests and provisions type of compliance related to selection from the waiting list. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.

Corrective Action Plan

Authority's Response and Planned Corrective Action: Management agrees with the recommendation of the auditor. The Authority will increase oversight in the Housing Voucher Cluster to ensure that established internal control policies related to selection from the waiting list are being documented and followed on a timely basis. Donald Paredez, Executive Director, is responsible for implementing this corrective action by December 31, 2025.

Categories

HUD Housing Programs Special Tests & Provisions

Other Findings in this Audit

  • 1157048 2024-003
    Material Weakness Repeat
  • 1157049 2024-004
    Material Weakness Repeat
  • 1157050 2024-005
    Material Weakness Repeat
  • 1157051 2024-003
    Material Weakness Repeat
  • 1157052 2024-004
    Material Weakness Repeat
  • 1157054 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $10.53M
14.872 Public Housing Capital Fund $2.21M
14.850 Public and Indian Housing $2.20M
14.879 Mainstream Vouchers $913,859
14.896 Family Self-Sufficiency Program $86,456