Finding 1157539 (2024-001)

Finding Reference: 2024-001 Federal Agency: US. Department of Housing and Urban Development Federal Program(s): Low Rent Public Housing ALN: 14.850 Category of Finding: Eligibility (E) Type of Finding: Noncompliance; Significant Deficiency CONDITION: Based upon inspection of the PHA’s tenant files and on discussions with management, the PHA failed to recertify tenants in accordance with the PHA’s Admissions and Continued Occupancy Policy and HUD regulations. CRITERIA: PHAs are required to re-examine and recertify tenants of Low Rent Public Housing at least annually. QUESTIONED COSTS: The amount of questioned costs could not be determined. CONTEXT: During audit fieldwork, 37 Low Rent Public Housing files from a statistically valid sample were examined for compliance with annual recertification requirements. Of the files examined, three recertifications were not completed during the 2024 fiscal year. EFFECT: The Authority is not in compliance with federal regulations regarding annual Low Rent Public Housing recertification and documentation. This could result in incorrect tenant rent charges and continued occupancy of tenants who are not eligible for the program. CAUSE: The overall cause was a lack of management oversight and quality control over this program. RECOMMENDATION: We recommend the PHA design and implement a corrective action plan that will assure compliance with the Uniform Guidance and the compliance supplement. MANAGEMENT’S RESPONSE See separately prepared Corrective Action Plan.