Finding 1157603 (2024-006)

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

AI Summary

  • Core Issue: The Authority lacks adequate internal controls for selecting new tenants from the waitlist, leading to non-compliance with HUD regulations.
  • Impacted Requirements: Written policies for waitlist selection must be followed, as outlined in HUD regulations (24 CFR sections 5.410, 982.54(d), and 982.201-207).
  • Recommended Follow-Up: The Authority should review and strengthen their processes and internal controls to ensure compliance with HUD requirements and their administrative plan.

Finding Text

Housing Voucher Cluster – Waitlist – New Tenants Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Federal Award Identification Number and Year: VA003, 2023-2024 Assistance Listing Number: 14.871/14.879/14.EHV Award Period: July 1, 2023 – December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The Authority must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and Authority documentation must show that the Authority follows these policies when selecting applicants for admission from the waiting list. Except 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 Authority notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure compliance over waitlist – new tenant requirements was met. Context: During our testing of 24 files for new tenants selected off of the waitlist, the Authority was unable to locate 1 file. Questioned costs: None Cause: The Authority has had vacancies and turnover in the staff who perform these processes, resulting in these processes being performed by less experienced and trained staff. Effect: The Authority is not in compliance with HUD regulations. Repeat Finding: No. Recommendation: We recommend the Authority review their process and internal controls for new tenants to ensure compliance with HUD requirements and their administrative plan. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Housing Voucher Cluster-Assistance Listing No. 14.871/14.879/14.EHV Recommendation: We recommend the Authority review their process and internal controls for new tenants to ensure compliance with HUD requirements and their administrative plan. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Director of Housing will review our process and internal controls for new tenants to ensure compliance with HUD requirements and our administrative plan. Name(s) of the contact person(s) responsible for corrective action: Director of Housing Planned completion date for corrective action plan: December 31 , 2025

Categories

Eligibility HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1157586 2024-001
    Material Weakness Repeat
  • 1157587 2024-001
    Material Weakness Repeat
  • 1157588 2024-001
    Material Weakness Repeat
  • 1157589 2024-002
    Material Weakness Repeat
  • 1157590 2024-002
    Material Weakness Repeat
  • 1157591 2024-002
    Material Weakness Repeat
  • 1157592 2024-003
    Material Weakness Repeat
  • 1157593 2024-003
    Material Weakness Repeat
  • 1157594 2024-003
    Material Weakness Repeat
  • 1157595 2024-004
    Material Weakness Repeat
  • 1157596 2024-004
    Material Weakness Repeat
  • 1157597 2024-004
    Material Weakness Repeat
  • 1157598 2024-005
    Material Weakness Repeat
  • 1157599 2024-005
    Material Weakness Repeat
  • 1157600 2024-005
    Material Weakness Repeat
  • 1157601 2024-006
    Material Weakness Repeat
  • 1157602 2024-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.889 Choice Neighborhoods Implementation Grants $11.05M
14.850 Public Housing Operating Fund $7.35M
14.872 Public Housing Capital Fund $6.19M
14.218 Community Development Block Grants/entitlement Grants $2.69M
14.879 Mainstream Vouchers $2.04M
14.239 Home Investment Partnerships Program $1.36M
14.195 Project-Based Rental Assistance (pbra) $1.24M
14.871 Section 8 Housing Choice Vouchers $650,204
14.896 Family Self-Sufficiency Program $236,979
14.870 Resident Opportunity and Supportive Services - Service Coordinators $156,389
14.267 Continuum of Care Program $109,770