Finding Text
Eligibility Moving to Work Demonstration Program AL No. 14.881 Material Weakness in Internal Control Material Noncompliance Condition: Out of an approximate population of 17,500 of Section 8 Housing Choice Voucher and 2,200 Low Rent Public Housing tenants the following deficiencies were noted: Section 8 Housing Choice Voucher (a total of 11 tenants selected for testing): • One file did not have annual recertifications performed during the year, • Two files did not have 9886 release of information forms within 15 months of annual recertification, • Three files did not have an annual recertification performed within 12 months of the previous certification, • Two files did not have an utility allowance calculation sheet during annual recertification, • Three files did not have documentation necessary to verify the reported income, • Two files did not have a inspections performed during the period, and • Two files did not utilize the correct payment standard. Eligibility (continued) Moving to Work Demonstration Program AL No. 14.881 Material Weakness in Internal Control Material Noncompliance Low Rent Public Housing (a total of 12 tenants selected for testing): • Three files did not contain flat rent options forms, • Four files did not have documentation necessary to verify the reported income, • Six files did not have a 214 declaration for a member of the household, and • One file did not have support necessary to verify income allowances, Criteria: The Authority’s ACOP, Administrative Plan, 24 CFR 960.259, and 24 CFR 982.516 require internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Context: The auditor randomly selected tenant files out of the population from each program as outlined, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges during the onset of COVID- 19 and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. Management Response: See Corrective Action Plan.