FAC Explorer

Finding 1160158 (2023-004)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2025-10-08
Audit: 370549
Organization: Grand Forks Housing Authority (ND)
Auditor: Brady Martz & Associates PC

AI Summary

  • Core Issue: One tenant file showed errors in reported annual income, indicating a lack of proper documentation.
  • Impacted Requirements: The Authority must verify and document family income, assets, and deductions as per federal regulations (24 CFR section 982.516).
  • Recommended Follow-Up: Review and improve procedures for maintaining tenant files to ensure all necessary documentation is collected and verified.

Finding Text

Federal Program – Housing Voucher Cluster 14.871 & 14.879 – Significant Deficiency Criteria or Specific Requirement – The Program requires the Authority to obtain and document in the family file third party verification of: (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516) for both family income examinations and reexaminations. Condition – We tested forty files for eligibility and noted one file with annual income errors. We also noted the leasing and property manager did not have documentation of performing the historical internal control practice of reviewing a sample of tenant files. Cause – Management oversight. Questioned Costs – Undeterminable Context – We tested compliance and internal controls on a sample of 40 tenant files out of the population of approximately 1,640 total tenants. Effect – The tenant could be receiving HAP that is either incorrect or possibly ineligible. Recommendation – We recommend that the Authority review the procedures for maintaining and reviewing tenant files to ensure all required documentation is available to support the tenant’s eligibility. Repeat Finding – Yes – see 2022-001. Views of Responsible Officials – Management will review their tenant file documentation procedures to ensure controls are in place to identify missing documentation within tenant files.

Corrective Action Plan

Contact Person Terry Hanson, Executive Director Corrective Action Plan The Authority has encountered turnover with their tenant specialists and will review, implement, and document controls that will ensure file reviewed are performed in a timely manner. Planned Completion Date for CAP Immediately

Categories

Eligibility Internal Control / Segregation of Duties Significant Deficiency

Other Findings in this Audit

  • 1160155 2023-004
    Material Weakness Repeat
  • 1160156 2023-004
    Material Weakness Repeat
  • 1160157 2023-004
    Material Weakness Repeat
  • 1160159 2023-005
    Material Weakness Repeat
  • 1160160 2023-005
    Material Weakness Repeat
  • 1160161 2023-005
    Material Weakness Repeat
  • 1160162 2023-005
    Material Weakness Repeat
  • 1160163 2023-006
    Material Weakness Repeat
  • 1160164 2023-006
    Material Weakness Repeat
  • 1160165 2023-006
    Material Weakness Repeat
  • 1160166 2023-006
    Material Weakness Repeat
  • 1160167 2023-007
    Material Weakness Repeat
  • 1160168 2023-007
    Material Weakness Repeat
  • 1160169 2023-007
    Material Weakness Repeat
  • 1160170 2023-007
    Material Weakness Repeat
  • 1160171 2023-008
    Material Weakness Repeat
  • 1160172 2023-008
    Material Weakness Repeat
  • 1160173 2023-008
    Material Weakness Repeat
  • 1160174 2023-008
    Material Weakness Repeat
  • 1160175 2023-009
    Material Weakness Repeat
  • 1160176 2023-009
    Material Weakness Repeat
  • 1160177 2023-009
    Material Weakness Repeat
  • 1160178 2023-009
    Material Weakness Repeat
  • 1160179 2023-010
    Material Weakness Repeat
  • 1160180 2023-010
    Material Weakness Repeat
  • 1160181 2023-010
    Material Weakness Repeat
  • 1160182 2023-010
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $383,435
14.871 Section 8 Housing Choice Vouchers $203,473
14.276 Youth Homelessness Demonstration Program $157,673
14.896 Family Self-Sufficiency Program $128,155
14.267 Continuum of Care Program $15,968
14.879 Mainstream Vouchers $14,723
14.218 Community Development Block Grants/entitlement Grants $2,800