Finding 1169548 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-01-19
Audit: 382517
Organization: City of Ashland (KY)

AI Summary

  • Core Issue: Preference codes assigned to applicants do not match original application information, leading to potential improper prioritization.
  • Impacted Requirements: Non-compliance with 24 CFR 982.54(d) regarding the PHA's administrative plan for waiting list procedures.
  • Recommended Follow-Up: Implement and document procedures for verifying any changes to preference codes to ensure compliance and fairness in applicant selection.

Finding Text

2025-001 FEDERAL COMPLIANCE – WAITING LIST PREFERENCES Federal Program Name: Housing Choice Voucher Program Catalog of Federal Domestic Assistance Number: 14.871 Federal Agency: U.S. Department of Housing and Urban Development Compliance Requirement: Special Tests and Provisions Criteria: According to 24 CFR 982.54(d), the PHA’s administrative plan must include procedures for the “Selection and admission of applicants from the PHA waiting list, including any PHA admission preferences, procedures for removing applicant names from the waiting list, and procedures for closing and reopening the PHA waiting list.” Condition: While reviewing applications for acceptance into the program, we noted several preference codes assigned to applicants that did not agree to information contained on the original application. Effect and Questioned Costs: Inadequate documentation of preference codes assigned to applicants. This could result in individuals improperly being moved to the top of the waiting list and allowed to enter the program before other qualified applicants. Repeat Finding: Yes, 2024-001 Recommendation: We recommend that the PHA implement procedures to document any changes to the original preference codes assigned to applicants. Management’s Response: The PHA has updated the Administrative Plan. Verification requirements are now explicitly stated, including what documentation is acceptable and what is not acceptable as verification. In addition, as the PHA selects applicants from the legacy waiting list, staff confirm the applicant still qualifies for the claimed preference at the time of selection.

Corrective Action Plan

The PHA has updated the Administrative Plan. Verification requirements are now explicitly stated, including what documentation is acceptable and what is not acceptable as verification. In addition, as the PHA selects applicants from the legacy waiting list, staff confirm the applicant still qualifies for the claimed preference at the time of selection.

Categories

HUD Housing Programs Special Tests & Provisions Allowable Costs / Cost Principles

Other Findings in this Audit

  • 1169549 2025-002
    Material Weakness Repeat
  • 1169550 2025-003
    Material Weakness Repeat
  • 1169551 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $4.64M
20.205 HIGHWAY PLANNING AND CONSTRUCTION $2.19M
20.507 FEDERAL TRANSIT_FORMULA GRANTS $805,209
15.252 ABANDONED MINE LAND RECLAMATION (AMLR) PROGRAM $509,600
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $368,248
66.818 BROWNFIELDS ASSESSMENT AND CLEANUP COOPERATIVE AGREEMENTS $156,492
95.001 HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM $51,988
20.939 SAFE STREETS AND ROADS FOR ALL $46,229
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $37,382
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $31,000
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $3,775
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $2,714