Finding Text
Condition: During our audit, we noted that the Authority was unable to provide complete and adequate waiting list documentation to support the selection of tenants who were issued housing vouchers. Specifically, required records demonstrating waiting list position, selection order, and eligibility determinations were not available for review. As a result, we were unable to verify that vouchers were issued in accordance with HUD waiting list and tenant selection requirements. Context: The HCV program requires housing authorities to maintain a waiting list and to issue vouchers in a manner that is consistent with HUD regulations and the Authority’s Administrative Plan. The waiting list reports could not be located and staff were unable to pull waitlist reports from the system to show historical data. Criteria: In accordance with 24 CFR 982.204 the Authority should follow the policies and procedures documented in its Administrative Plan for applicant eligibility, purging the waiting list, and maintaining the proper order of the waiting list. Cause: The Authority experienced staffing turnover and did not have the available staff to fully implement the established internal controls to ensure proper maintenance and compliance of the waiting list. Effect: The Authority is unable to demonstrate that housing vouchers were issued in accordance with HUD waiting list and tenant selection requirements. Questioned Costs: None. Auditor Recommendations: We recommend that management perform a reconciliation of the waiting list and reconstruct missing documentation where possible to support applicant selection and voucher issuance. Management should update and formalize waiting list procedures in accordance with HUD regulations and the Authority’s Administrative Plan, implement supervisory review controls to verify completeness of waiting list documentation prior to voucher issuance, and ensure records are retained in accordance with HUD and federal record-retention requirements. In addition, management should provide training to staff responsible for waiting list administration to promote consistent compliance with HUD requirements. Management Response: See Corrective Action Plan.