Finding 1167140 (2024-006)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-12-30
Audit: 378189
Auditor: RBT CPAS LLP

AI Summary

  • Core Issue: Tenant recertifications for Housing Choice Vouchers were not completed on time due to software transition challenges.
  • Impacted Requirements: The Organization must reexamine tenant income and composition at least once every 12 months to maintain compliance.
  • Recommended Follow-Up: Adjust software filters to ensure all tenants due for recertification are included in reports to prevent future compliance issues.

Finding Text

14.871 – Section 8 Housing Choice Vouchers E. Eligibility – Significant Deficiency and Compliance Finding Condition: During review of the Housing Choice Voucher tenant files, RBT noted that tenant recertifications were not being performed timely. Criteria: As a condition of continued occupancy, the Organization must reexamine family income and composition at least once every 12 months and adjust tenant rent and housing assistance payments as necessary using the documentation from third party verification. Cause: The Organization switched to a new software in October 2023 and was unfamiliar with the reports that are generated to identify recertification that were coming due. The aging reports that were used to identify tenants that have approaching recertifications were filtered in the software, resulting in tenants being excluded from the reports. Effect: Potential loss of funding due to noncompliance. Perspective: The tenant recertifications were not completed within 12 months for 7 out of 25 tenant files selected for testing. Recommendation: RBT recommends that the Organization ensure aging reports in the software are filtered properly to include all tenants with approaching recertifications to ensure no recertifications are missed.

Corrective Action Plan

To date, The Director of Housing Choice Vouchers (Section 8) have tested all our reports to ensure they are properly filtered to include all tenant with approaching recertifications will be performed timely.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1167139 2024-005
    Material Weakness Repeat
  • 1167141 2024-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $650,236
17.274 YOUTHBUILD $561,125
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $462,660
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $408,701
21.020 COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS PROGRAM $276,000
14.874 LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUSING $266,861
14.873 NATIVE HAWAIIAN HOUSING BLOCK GRANTS $118,560
14.169 HOUSING COUNSELING ASSISTANCE PROGRAM $30,000