Finding 1167015 (2025-002)

Material Weakness Repeat Finding
Requirement
ELN
Questioned Costs
-
Year
2025
Accepted
2025-12-30

AI Summary

  • Core Issue: The Authority failed to maintain essential tenant documentation, impacting compliance with federal housing program requirements.
  • Impacted Requirements: Key compliance areas include eligibility verification, timely reporting, and annual recertifications as mandated by HUD.
  • Recommended Follow-Up: Enhance policies and internal controls to ensure all necessary documentation is collected and maintained accurately.

Finding Text

Finding 2025-002: Missing Tenant Information (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Choice Voucher Cluster Federal Assistance Listing Number: 14.871 Compliance Requirement: Eligibility, Reporting, Special Tests and Provisions Criteria: Per 2 CFR, PHAs are required to obtain documentation declaring the tenant is eligible to receive federal housing benefits, obtain release forms from tenants to gather necessary information from third parties, perform annual recertifications of tenant income through HUD Form 50058, and perform annual inspections of the units. Condition: The Authority was unable to provide declarations of eligible status, signed release forms, and annual recertifications. Context: Out of the 40 tenant files reviewed, we found the following exceptions: • 1 file did not have proper documentation supporting income calculation • 2 files did not have updated signed release forms • 15 HUD Form 50058s were not submitted on time • 3 files did not have proper utility allowance calculations • 1 files did not have a HUD Form 50058 Effect: The Authority was not in compliance with the eligibility, reporting, and special tests and provisions requirements for the program. Cause: The Authority did not have the proper controls in place to ensure the files were complete and accurate. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the recertifications are performed and the necessary documentation is adequately retained in the Authority’s files. Views of Responsible Officials: The Authority agrees with the finding.

Corrective Action Plan

Corrective Action Plan 1. Policy and Procedure Review and Update During the first quarter of 2025, GHA conducted a comprehensive review of its Housing Choice Voucher policies and since then, provided staff with ongoing standard operating procedures training related to tenant eligibility, annual recertifications, income calculations, utility allowance determinations, HUD Form 50058 submissions, and file retention. Policies were adopted and has since been amended as needed to clearly define documentation requirements, timelines, and staff responsibilities. Moving forward, supervisors will conduct 20 percent of active participant files annually, reviewed on a monthly basis, to verify that all required documentation is complete, accurate, and compliant with HUD and federal program requirements. Responsible Party: Housing Program Director / Assistant Director Anticipated Completion Date: March 31, 2027 2. Strengthening Internal Controls and File Management GHA implemented standardized file checklists for move-ins, unit transfers, port-ins, annual recertifications, interim reexaminations, and port-outs to ensure all required documents (including eligibility declarations, signed release forms, income verifications, utility allowance calculations, and HUD Form 50058s) are present and complete prior to file review. Supervisory reviews will be documented on 20 percent of active participant files to confirm compliance. In addition, corrective actions will be taken immediately when deficiencies are identified. Results will also be documented and used to guide additional training or process improvements. Responsible Party: Housing Program Director / Assistant Director Anticipated Completion Date: Monthly 3. Timely HUD Form 50058 Reporting GHA will reinforce reporting timelines and establish monitoring controls to ensure HUD Form 50058s are submitted accurately and timely in accordance with HUD requirements. Monthly reconciliation reports will be reviewed by supervisory staff to identify and correct late or missing submissions. Responsible Party: Housing Program Director / Assistant Director Anticipated Completion Date: Ongoing, with full implementation within 30 days 4. Staff Training and Technical Assistance All HCV staff will receive refresher training on eligibility determinations, income calculation, utility allowance application, documentation requirements, and HUD Form 50058 reporting. Training will emphasize regulatory compliance, record retention, and the importance of complete and accurate tenant files. Responsible Party: Housing Program Director / Assistant Director Anticipated Completion Date: Within 90 days 5. File Quality Control Reviews GHA will implement periodic internal quality control reviews of tenant files, by the Chief Operating Officer, to ensure ongoing compliance. A sample of 30 participant files will be reviewed quarterly, and corrective actions will be taken immediately when deficiencies are identified. Results will also be documented and used to guide additional training or process improvements. Responsible Party: Chief Operating Officer Anticipated Completion Date: Quarterly, beginning within 60 days Expected Results Implementation of this corrective action plan will strengthen internal controls, improve documentation accuracy and timeliness, ensure compliance with HUD and federal requirements, and reduce the risk of future audit findings related to tenant eligibility and reporting. Status of Finding: Open – Corrective actions in progress

Categories

HUD Housing Programs Special Tests & Provisions

Other Findings in this Audit

  • 1167012 2025-001
    Material Weakness Repeat
  • 1167013 2025-002
    Material Weakness Repeat
  • 1167014 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 PUBLIC HOUSING OPERATING FUND $4.99M
14.879 MAINSTREAM VOUCHERS $1.67M
14.872 PUBLIC HOUSING CAPITAL FUND $1.03M
14.895 JOBS-PLUS PILOT INITIATIVE $258,861
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $244,890
14.892 CHOICE NEIGHBORHOODS PLANNING GRANTS $176,457
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $20,000
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $15,000