Finding 1166806 (2025-002)

Material Weakness Repeat Finding
Requirement
ELN
Questioned Costs
-
Year
2025
Accepted
2025-12-29
Audit: 377917
Auditor: RBT CPAS LLP

AI Summary

  • Core Issue: The Authority lacks proper controls over key areas like Eligibility and Reporting for Housing Choice Voucher tenant files.
  • Impacted Requirements: Failure to comply with federal regulations and grant agreements may lead to funding loss.
  • Recommended Follow-Up: Implement a checklist for Housing Coordinators during recertification to ensure all compliance requirements are documented and verified.

Finding Text

2025-002 - Documentation of Controls U.S. Department of Housing And Urban Development 14.871 - Housing Choice Voucher Cluster/Section 8 Housing Choice Vouchers E. Eligibility, L. Reporting, and N. Special Tests and Provisions - Significant Deficiency and Compliance Finding Condition: During review of the Housing Choice Voucher tenant files, RBT noted that the Authority did not establish appropriate controls over Eligibility, Reporting, Reasonable Rent, Utility Allowance, and HQS Inspections. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority did not establish controls over Eligibility, Reporting, Reasonable Rent, Utility Allowance, and HQS Inspections. Effect: Potential loss of funding due to noncompliance or additional noncompliance if a control is missed. Questioned Costs: None identified. Perspective: Out of forty-five files tested, two files were missing a rent reasonableness form, and one file was missing documentation of the internal controls performed. Repeat Finding: This is a repeat of finding 2024-001. Recommendation: RBT recommends that the Authority establish a checklist for the Housing Coordinators to use during the recertification process to ensure all compliance requirements are met. The checklist should be signed or initialed by the Housing Coordinators preparing the checklist and by a reviewer and maintained in the tenant's file. This checklist will serve as documentation that all compliance requirements were verified for the tenant. Auditor's Response: See corrective action plan.

Corrective Action Plan

Hempstead Housing will continue to move forward since the 2024 findings to use the internal control checklist but will revise the checklist to reflect 2 people checking the folder for all documents, it will have reflect a Reviewer instead of Supervisor and will not include a PHA staff as the preparer as initialers

Categories

HUD Housing Programs Special Tests & Provisions

Other Findings in this Audit

  • 1166807 2025-003
    Material Weakness Repeat
  • 1166808 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $8.78M
14.850 PUBLIC HOUSING OPERATING FUND $1.44M
14.872 PUBLIC HOUSING CAPITAL FUND $786,622