Finding 1167905 (2025-001)

Material Weakness Repeat Finding
Requirement
Eligibility
Questioned Costs
-
Year
2025
Accepted
2026-01-06

AI Summary

  • Core Issue: Three recertifications for the MTW program were not completed on time, affecting tenant eligibility and subsidy calculations.
  • Impacted Requirements: Annual, bi-annual, or tri-annual recertifications are required to verify tenant income and family composition.
  • Recommended Follow-Up: Enhance monitoring of quality control and implement stronger internal controls to ensure timely recertifications.

Finding Text

2025-001 Recertifications Federal Agency: U.S. Department of Housing and Urban Development (Passed through MA EOHLC) Federal Programs: 14.881 Moving to Work Demonstration Program (MTW) Condition: Three recertifications for MTW were not completed in a timely manner. Criteria: The MTW program requires tenants to be recertified annually, bi-annually, or tri-annually based on certain criteria in the MTW Annual Plan, in order to determine eligibility and calculate the amount of subsidy the tenant will receive on a monthly basis. This includes but is not limited to, verification of tenant income, the value of assets, deductions from annual income, and determining family composition. Cause: The Organization was unable to complete the recertifications in accordance with program requirements. Effect: Non-compliance with program requirements resulting in payment of unsupported or incorrect tenant subsidies. Context: A sample of 40 recertifications were selected for the program for the month of December 2024 with subsidy payments totaling $98,603. The total population consisted of approximately 8,000 tenants with subsidy payments totaling approximately $16,000,000. Our sample was not a statistically valid sample. This was not a repeat finding from a prior period. Questioned Costs: N/A Recommendation: We recommend that monitoring of established quality control procedures be enhanced and additional internal control procedures be implemented to ensure recertifications are completed in accordance with program requirements. Management Response: Management agrees with the finding. See management’s attached corrective action plan.

Corrective Action Plan

2025-001 Recertifications 14.881 Moving to Work Demonstration Program – Award No. OCD26401344019MTW Responsible Official Sarah Scott Director of Leased Housing Plan Detail There has been a greater focus on ensuring new past dues (recertifications not completed on time) do not occur while we continue to resolve older ones. Starting with April 1, 2024 regular recertifications, we implemented a more rigorous monitoring process. The day after data entry for each recertification is due, the Director of Leased Housing generates a comprehensive report that consolidates information from multiple sources, including our software and internal tracking systems. Once verified, the Director provides these reports—including past-due recertifications from prior months—to managers for follow-up. Managers are responsible for ensuring the timely resolution of all cases on the report. Managers are held accountable for ensuring past-due cases do not reappear in subsequent months. Since the implementation of this process, we have seen a significant reduction in the number of past-due recertifications for assigned caseloads as management is proactive in ensuring no name, especially those on vacant caseloads due to numerous staff medical leaves, reaches that list. Additionally, as of October 2025, the Leased Housing Department will be operating within our new Yardi software system, a significant upgrade designed to enhance efficiency, accuracy, and user experience across all aspects of program administration. Yardi enables considerably faster processing times compared to our current platform, reducing the time needed to complete certifications, adjustments, and case updates. One of the most beneficial features of Yardi is its Recertification Dashboard, which provides staff with real-time visibility into upcoming deadlines, pending tasks, and the overall status of each case. The dashboard includes automated prompts and workflow reminders throughout the recertification process, ensuring staff stay on track and that each step is completed in sequence. In addition to speed and organization, Yardi offers enhanced data accuracy and integration capabilities, minimizing duplication and manual entry errors. These improvements will help staff manage their caseloads more effectively, provide more timely service to participants and property owners, and ensure compliance with program requirements. Anticipated Completion Date June 30, 2026 – Past due percentages will be lowered to acceptable levels with those outstanding being a result of the hearings and appeals process.

Categories

Subrecipient Monitoring Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1167904 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.881 MOVING TO WORK DEMONSTRATION PROGRAM $7.15M
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $2.13M
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $1.19M
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $1.10M
21.023 EMERGENCY RENTAL ASSISTANCE PROGRAM $1.01M
14.267 CONTINUUM OF CARE PROGRAM $280,596