Finding 1168845 (2024-003)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2026-01-13

AI Summary

  • Core Issue: Tenant files for the Section 8 program are missing required items and were not recertified on time.
  • Impacted Requirements: Annual recertification and documentation procedures were not followed, leading to incomplete tenant files.
  • Recommended Follow-Up: Implement a checklist for required documentation in each tenant file to ensure compliance.

Finding Text

Finding 2024-003 Type of Finding: Material Weakness Criteria: Tenant files for the Section 8 Housing Choice Voucher program are required to undergo recertification every 12 months and include a list of required forms signed by the tenant and other information supporting the participants portion of their rent and also that bi-annual inspections of the participant’s unit have been conducted. Condition: Of the tenant files examined for testing, 22 of the files were missing one or more items required to be included in the file and/or were not recertified within the 12-month time frame. Effect: Required procedures for maintaining tenant documentation were not being followed. Cause: Lack of oversight by the staff and management. Recommendation: A checklist of required documentation should be included in each tenant file to ensure all forms are included and properly signed. Views of responsible officials and planned corrective actions: The Authority agrees with the finding. Please refer to the corrective action plan on page 43 and 44.

Corrective Action Plan

Name of Contact Person: Stephanie Hanvey, Director, Regional Housing, Western Piedmont Council of Government Corrective Action: With the merger of the City of Hickory public Housing Authority into the Western Piedmont Council of Governments affected July 1, 2025, staff have impacted new processes to make sure that all the HPHA files and past processes are brought into compliance. Reviewing PIC inspection delinquency reports and scheduling overdue inspections, beginning with the most delinquent cases, while also coordinating current annual inspections with annual reexaminations to maintain compliance. Staff is reviewing the PIC delinquent annual reexamination report and completing overdue examinations in order of priority, and an annual reexamination checklist has been added to ensure all required documentation is collected. An audit process has been implemented for every examination to strengthen oversight, and quarterly quality control inspections are being conducted to monitor the inspection process. In addition, staff review EIV reports monthly to verify the integrity of the client information-including multiple subsidy, SSN screening, and income reporting-and monitor SACS software reports each month to ensure recertification are completed within required timelines. Proposed Completion Date: Immediately

Categories

HUD Housing Programs Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $1.94M
14.879 MAINSTREAM VOUCHERS $262,470
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $63,304
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $17,029