Finding 1216559 (2025-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-06-04

AI Summary

  • Core Issue: Many participant files are missing required signatures from adult members and landlords, leading to non-compliance with HUD regulations.
  • Impacted Requirements: All adult household members and landlords must sign contracts and recertifications; failure to do so affects program eligibility.
  • Recommended Follow-Up: Management should update control procedures, suspend non-compliant participants, and retrain staff on admissions and recertification processes.

Finding Text

2025-001 Participant Signatures Federal Agency: Department of Housing and Urban Development (HUD) Programs effected: ALN 14.871 Housing Choice Vouchers and ALN 14.879 Mainstream Vouchers Criteria: Per HUD regulations all adult members of participant households must sign the contracts, releases, and recertifications. The landlords must also sign the contracts. Condition: The Authority lacked proper controls to ensure that the necessary signatures were being obtained during the initial onboarding process nor during the annual or interim re-examinations. Context: Approximately 44% of files selected for testing lacked the proper signatures for the time period covered by the audit. Cause of Condition: The Authority has experienced turnover at the executive and program levels. The new staff and management lacked the proper training to operate the controls. Effect of Condition: Many of the participant files were out of compliance. The files lacked proper documentation that the participants had been informed of their benefits or authorized the release of information. Recommendation: Management should review the control procedures relating to admissions, recertification, and documentation and update them as necessary. Participants and landlords failing to fulfill their roles in the admissions and recertification process should have their participation suspended until they are in compliance. Additionally, all staff performing admissions and recertifications should be retrained on the procedures. Management’s Response: Management will review the admissions, recertification, and documentation procedures to ensure that they comply with HUD regulations. All personnel involved in admissions and recertification will be retrained on the updated procedures.

Corrective Action Plan

The Wytheville Redevelopment & Housing Authority had experienced turnover during FY2025. The hiring of a new Executive Director (3/1/2025) and a new Housing Director (10/31/2025). All of the FY 2025 new admissions, annual, & interim recertifications would have been completed by our previous Housing Director. Both new hires have obtained specialized training in the Housing Choice Voucher program and have gained competencies in administering the program. 2025-001- Participant Signatures A portion of our HCV tenants & landlords did not fulfill their obligation to sign and return certification documents. Moving forward, the following has system has been implemented:  All HCV participants are to be given a strict return documents deadline. If a tenant or landlord fails to bring in their signed documents, Housing Assistance Payments will be suspended. If the participant fails to bring in the aforementioned documents before the end of the month. Their participation with the WRHA HCV program will be terminated.  No HCV applicant will be placed onto the program until their new admission documents have been signed  All HCV participants (tenants and landlords) will be receiving a letter informing them of the WRHA’s obligation to receive signed documents  At the end of every month, I will review documents with housing staff here to ensure corrective action is enforced. Our housing operations staff will be cross training with other agencies as well to strengthen their competencies with the HCV program. Since the completion of our FY2025 audit, I have taken the time to review our internal procedures and find that this corrective action plan will assist our agency in its ongoing dedication to compliance.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1216558 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $701,276
14.850 PUBLIC HOUSING OPERATING FUND $655,736
14.879 MAINSTREAM VOUCHERS $129,799
14.872 PUBLIC HOUSING CAPITAL FUND $40,707