Finding 1164510 (2025-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
$1
Year
2025
Accepted
2025-12-11
Audit: 374083
Organization: Middletown Housing Authority (CT)
Auditor: GEEL LLP

AI Summary

  • Core Issue: Late annual recertifications were found, impacting income eligibility and rent calculations.
  • Impacted Requirements: Compliance with the HCV Admin Plan is compromised, leading to potential overpayments.
  • Recommended Follow-Up: Address staff workload, improve document workflow, and enhance review procedures for manual adjustments.

Finding Text

Eligibility – Housing Voucher Cluster 14.871 Significant Deficiency and Reportable Noncompliance Statement of Condition and Criteria The audit noted instances of late annual recertifications. PHA’s are required to determine income eligibility, calculate participant rent and housing assistance payments on an annual basis in accordance with its HCV Admin Plan. Cause Significant program staff turnover during the year. Effect or Potential Effect Increase in manual, retroactive housing assistance payments including potential for overpayment of assistance to landlords. Questioned Costs Known questioned costs totaled $5,872. Context A sample of 40 files were selected to audit program eligibility from a population of 831. The test found 25 files noted late annual recertifications including 3 files with an overpayment of assistance due to errors. Recommendation We recommend the Authority continue its work in addressing staff workload and review document workflow to ensure tasks are carried out through completion. The Authority should also consider increasing review procedures for the processing of manual HAP adjustments due to increased risk of error. Management’s Response Management a

Corrective Action Plan

Corrective Action MHA is now fully staffed with a current recertification reporting rate of over 96%. New staff members have been hired, trained and fully onboarded. An outside consultant was retained prior to staff hiring and processed all delinquent recertifications in the spring of 2025. Additional staff training is being scheduled. Increased quality control procedures are being designed and implemented in coordination with a consultant to ensure ongoing activities meet Authority standards as well as Federal requirements.

Categories

Questioned Costs HUD Housing Programs Eligibility Significant Deficiency Matching / Level of Effort / Earmarking

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $11.73M
14.850 PUBLIC HOUSING OPERATING FUND $933,445
14.872 PUBLIC HOUSING CAPITAL FUND $178,449