Finding 1168738 (2025-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-01-12

AI Summary

  • Core Issue: Twelve tenant recertification forms were incomplete, leading to potential noncompliance with HUD regulations.
  • Impacted Requirements: Compliance with income eligibility verification as outlined in 24 CFR sections 5.230, 5.609, and 982.516.
  • Recommended Follow-Up: Management should establish internal controls to ensure timely and complete recertification forms are collected and filed.

Finding Text

US Department of Housing and Urban Development Program Name Low Rent Public Housing AL Number 14.850 E Eligibility 2025-001 Income Eligibility Questioned Costs The monetary impact needs further investigation to determine the amount for the period of noncompliance. Criteria As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Condition During the audit, it was noted that in twelve (12) instances of tenant's recertification form for participation in the Program we not completed. Context We selected a sample of twenty-five (25) tenant files, of those files twelve (12) lacked the correct recertification forms. The prior year forms were present, the future forms were present, however, the period under audit was not completed. Cause The Authority had a change in personnel that complete the annual recertification. The person responsible during our audit period did not complete the required recertifications with in 12 months of prior certifications. Effect The Authority was not in compliance with HUD regulations during the period of time indicated in the cause description. Recommendations Management Views Management should implement internal control procedures to ensure that recertification forms are obtained during re-examination and are properly files in the tenant's file. Management agrees.

Corrective Action Plan

Finding # 2025-001- Finding Description: As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility (24 CFR sections 5. 2301 5. 6091 982.516) Corrective Action Plan: WHA prioritized and immediately completed all annual recertifications that were overdue, implemented standard operating procedures to initiate annual reexaminations 120 days before the tenant's anniversary date, ensured all relevant staff are properly trained on HUD requirements, and established a monitoring system to track the status of all upcoming annual recertifications. Anticipated Completion Date: Completed Contact Person: Name, Title: Belinda Kahl, Executive Director Address: 48 Chestnut Park Drive, Waynesville NC 28786 Phone#: 828-456-6377 Contact Person Signature: ~d-{

Categories

HUD Housing Programs Eligibility

Programs in Audit

ALN Program Name Expenditures
10.415 RURAL RENTAL HOUSING LOANS $905,555
14.182 LOWER INCOME HOUSING ASSISTANCE PROGRAM_SECTION 8 NEW CONSTRUCTION/SUBSTANTIAL REHABILITATION $339,166
14.850 PUBLIC HOUSING OPERATING FUND $298,994
14.872 PUBLIC HOUSING CAPITAL FUND $292,946