Finding 1167291 (2025-001)

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

AI Summary

  • Core Issue: Significant deficiencies in tenant file documentation were found, including missing forms and errors that affect compliance with HUD requirements.
  • Impacted Requirements: Internal controls outlined in the Authority’s administrative plan and 24 CFR 982.516 are not being followed, risking incorrect rental assistance amounts.
  • Recommended Follow-Up: Train staff on compliance procedures, address the noted deficiencies, and assess the impact on the entire tenant file population.

Finding Text

Eligibility Section 8 Housing Choice Vouchers Program - AL No. 14.871 Material Weakness in Internal Control Material Noncompliance Condition: Out of an approximate population of 2,200 tenants, a total of 37 tenant files were selected for testing and the following deficiencies were noted: • Thirteen files were missing rent reasonableness documentation, • Eleven files were missing 214 forms, • Eleven files were missing income support or had an income calculation error, • Eleven files were missing recertifications that agreed to the rent roll month tested, • Eight files were missing annual inspections, • Eight files had incorrect utility allowances, • Six files did not have a valid 9886 release of information form within 15 months of the annual recertification, • Five files were missing identification for tenants, • Four files had the incorrect payment standards used, and • One file had an annual recertification completed over 12 months after the previous recertification. Criteria: The Authority’s administrative plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding complete and accurate tenant files. Context: The auditor haphazardly selected 37 tenant files out of the population, which is considered to be a statistically valid sample. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing turnover and did not have the available staff to fully implement the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to complete the tenant files. Additionally, the implementation of online certifications and transitioning to paperless recordkeeping contributed to inconsistent electronic files being maintained. Effect: The Authority is not in full compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: None. Auditor Recommendations: The Authority should continue to train staff on the established procedures and controls in place to ensure full compliance in regard to eligibility. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. Management Response: See Corrective Action Plan.

Corrective Action Plan

Eligibility - Qualified Opinion Section 8 Housing Choice Vouchers Program -AL No. 14.871 Material Weakness in Internal Control Material Noncompliance Condition: Out of an approximate population of 2,200 tenants, a total of 37 tenant files were selected for testing and the following deficiencies were noted: • Thirteen files were missing rent reasonableness documentation, • Eleven files were missing 214 forms, • Eleven files were missing income support or had an income calculation error, • Eleven files were missing recertifications that agreed to the rent roll month tested, • Eight files were missing annual inspections, • Eight files had incorrect utility allowances, • Six files did not have a valid 9886 release of information form within 15 months of the annual recertification , • Five files were missing identification for tenants, • Four files had the incorrect payment standard used, and • One file had an annual recertification completed over 12 months after the previous recertification. Auditor Recommendations: The Authority should continue to train staff on the established procedures and controls in place to ensure full compliance in regard to eligibility. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor's sample. Action Taken: HCV department will implement the recommendation as presented. The department does recognize that this is a repeat finding and leadership adjustments have been made, appointing a new program director. Transition to paperless function results in adjustment to regular quality checks. A few of the functions to enhance performance during the next fiscal year will be: • Establish and enforce Standard operating procedures • Quantitative metrics added to performance evaluation for all staff, including errorrate. • Periodic one-on-one check-ins from supervisors • Enforce mandatory, individual staff, QC forms to ensure files are maintained in order • Weekly staff meetings to review and discuss regulations, administrative policies, PIC issues, QC errors and required protocols • Enforce internal QC procedures at a minimum of 10% annually • Use QC data to assign additional review duties to staff with high error-rates • Enforce electronic files for every customer • In an effort to exceed expectations staff will attend trainings to update and trach staff requirements and protocols on pending HACFM changes to include PBV, HOTMA, NSPIRE and HCV Specialist training for newer staff.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1167288 2025-001
    Material Weakness Repeat
  • 1167289 2025-002
    Material Weakness Repeat
  • 1167290 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 PUBLIC HOUSING OPERATING FUND $5.08M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $3.65M
14.889 CHOICE NEIGHBORHOODS IMPLEMENTATION GRANTS $2.95M
14.269 HURRICANE SANDY COMMUNITY DEVELOPMENT BLOCK GRANT DISASTER RECOVERY GRANTS (CDBG-DR) $2.76M
14.872 PUBLIC HOUSING CAPITAL FUND $1.98M
14.879 SECTION 8 HOUSING CHOICE VOUCHERS $1.95M
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $1.16M
14.895 JOBS-PLUS PILOT INITIATIVE $412,743
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $202,951
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $80,278