Finding 1159455 (2025-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2025-10-01

AI Summary

  • Core Issue: The waitlist system lacks historical data, preventing compliance checks for new applicants against established policies.
  • Impacted Requirements: Noncompliance with federal regulations and the Housing Authority’s Admissions and Continued Occupancy Policy (ACOP) could jeopardize funding.
  • Recommended Follow-Up: Obtain training from the software vendor to ensure proper documentation of waitlist compliance and maintain an audit trail for applicant selections.

Finding Text

Finding 2025-001 – Public Housing Internal Control over Waiting List – Eligibility Noncompliance and Significant Deficiency Low Rent Public Housing – Subsidy ALN 14.850 Condition & Cause: A review of the waitlist system within the software module revealed that the historical waitlists are not available for review. Without being able to generate the historical waitlist used to house certain residents, we were unable to conduct a compliance review of the new applicants which were housed, to determine that they were placed in proper order and in accordance with the ACOP. Consequently, without substantive evidence we could not determine PHA compliance with federal regulations. Criteria: The Code of Federal Regulations and the Housing Authority’s Admissions and Continued Occupancy Policy (ACOP). 24 CFR 960.206(e)(2) states that there must be a clear audit trail to verify that each applicant has been selected in accordance with the method specified in the PHA plan. Effect: Failure to provide evidence of compliance can result in loss of funding for grants and other programs which require operations to demonstrate compliance with the applicable regulations. Recommendation: We recommend that the Agency obtain training from the software vendor to document the compliance with the waitlist criteria established in the ACOP and Code of Federal Regulations. The Authority should be able to support each selection and move in from the waiting list with evidence that it followed its board approved housing policies. This documentation should be available through the software but could also be provided through manual contemporaneous documentation. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes

Corrective Action Plan

Finding 2025-001- Public Housing Internal Control over Waiting List - Eligibility Noncompliance and Significant Deficiency Low Rent Public Housing - Subsidy ALN 14.850 Corrective Action Plan: The Great Falls Housing Authority printed out waiting lists on the date of the audit finding. We will keep notes on the list and at periodic times when adding or deleting applicants we will maintain all lists in a binder for historical review. Person Responsible: Donna Halbleib, Program Supervisor Anticipated Completion Date: Already implemented and will be continuously kept - March 31, 2026

Categories

HUD Housing Programs Eligibility Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $2.32M
14.850 Public Housing Operating Fund $1.91M
14.871 Section 8 Housing Choice Vouchers $1.13M
14.218 Community Development Block Grants/entitlement Grants $59,947