Finding 1166845 (2025-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-12-29

AI Summary

  • Core Issue: The Authority lacks established waiting list procedures for admitting tenants into the Housing Choice Voucher program.
  • Impacted Requirements: Noncompliance with federal regulations and grant agreements due to absence of an Administrative Plan governing participant selection.
  • Recommended Follow-Up: Develop and implement a comprehensive Administrative Plan that includes clear policies for waiting list selection processes.

Finding Text

2025-003 - Waiting List Procedures U.S. Department of Housing and Urban Development 14.871 - Housing Choice Voucher Cluster/Section 8 Housing Choice Vouchers N. Special Tests and Provisions - Significant Deficiency and Compliance Finding Condition: During review of the Housing Choice Voucher ("HCV") program, RBT noted that the Authority did not establish waiting list procedures to admit tenants into the program. 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 does not have an Administrative Plan ("Plan") in place. The Plan should include policies governing the selection of HCV participants from the waiting list. Staff are unfamiliar with waiting list preferences and policies. Effect: Potential loss of funding due to noncompliance or additional noncompliance if a control is missed. Questioned Costs: None identified. Perspective: Out of the four new tenants admitted to the HCV program selected for testing, four did not have documents showing that waiting list selection procedures were followed. Repeat Finding: This is a repeat of finding 2024-004. Recommendation: RBT recommends that the Authority establish and follow a Housing Choice Voucher program Administrative Plan, including policies and procedures for waiting list selection processes. Auditee's Response: See corrective action plan.

Corrective Action Plan

Auditee’s Response and Planned Corrective Action: Management concurs with the audit finding and acknowledges HUD’s requirements for maintaining effective internal controls in accordance with applicable HUD regulations and guidance. The Authority acknowledges that written waiting list policies and consistent documentation were not fully implemented. Planned Corrective Action: The Authority will develop, formally adopt, and implement HUD-compliant written waiting list policies and procedures for the Housing Choice Voucher and Public Housing programs, consistent with applicable HUD regulations. Staff will be trained in these procedures, and compliance will be monitored through periodic supervisory reviews. Sustainability Measures: The Authority will sustain compliance by incorporating waiting list procedures into formal policy, providing recurring staff training, and performing documented supervisory reviews. Policies and procedures will be reviewed periodically to ensure continued alignment with HUD Housing Choice Voucher and Public Housing requirements.

Categories

HUD Housing Programs Special Tests & Provisions

Other Findings in this Audit

  • 1166846 2025-004
    Material Weakness Repeat
  • 1166847 2025-005
    Material Weakness Repeat
  • 1166848 2025-006
    Material Weakness Repeat
  • 1166849 2025-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $5.71M
14.850 PUBLIC HOUSING OPERATING FUND $1.11M
14.872 PUBLIC HOUSING CAPITAL FUND $963,869
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $151,359