Finding 1222230 (2025-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-06-30

AI Summary

  • Core Issue: Missing original lease agreements for two tenants in the Housing Voucher program.
  • Impacted Requirements: The Corporation must maintain adequate documentation to comply with Uniform Guidance.
  • Recommended Follow-Up: Obtain signed lease copies from landlords and improve documentation procedures for tenant files.

Finding Text

2025-001 U.S. Department of Housing and Urban Development Housing Voucher Cluster - 14.871 Section 8 Housing Choice Vouchers and 14.879 Mainstream Vouchers Eligibility NONCOMPLIANCE Condition: Lack of adequate supporting documentation. The Corporation was unable to provide the original lease agreement for two tenants included in the testing sample. Criteria: The Corporation is required to maintain adequate documentation to provide evidence of their compliance with requirements applicable to each program funded under the Uniform Guidance. Cause: As a result of converting tenant software, scanned lease agreements were not retained for 2 of the 40 tenants tested. Each of the tenants have been in the program since 2004 and 2012, respectively. The Corporation does not maintain paper files going back to those periods. Effect: There is a possibility noncompliance could result in additional regulatory scrutiny or potential administrative penalties. Recommendation: The Corporation should contact the landlords and obtain a signed copy of the lease agreements for any files where the lease is missing. The Corporation should ensure the tenant files contain all required information and have adequate back-up procedures in place. Grantee’s Response: The Corporation concurs and is implementing this recommendation.

Corrective Action Plan

U.S. Department of Housing and Urban Development Housing Voucher Cluster: ALN-14871 Section 8 Housing Choice Vouchers and ALN-14.879 Mainstream Vouchers Noncompliance - Eligibility A. Comments on Findings and Recommendations: We concur with the auditor’s suggestions for maintaining supporting documentation to provide evidence of the Agency’s compliance with requirements applicable to each program funded under Uniform Guidance requirements. B. Actions Taken or Planned: Management implemented changes to ensure that upon move-ins a copy of the executed lease is obtained, and management has included on the check list completed with each move in a reference to obtaining and scanning the new lease. The lease is scanned into the Corporation’s web-based system and retained for as long as the person remains on the program. Management will continue to evaluate their controls with respect to current federal awards and requirements to ensure accurate information captured, reported and maintained. Anticipated completion date: 9/30/26 Responsible party: Michelle Worthington, Section 8 Housing Director

Categories

HUD Housing Programs Eligibility

Other Findings in this Audit

  • 1222229 2025-001
    Material Weakness Repeat
  • 1222231 2025-002
    Material Weakness Repeat
  • 1222232 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $6.81M
10.415 RURAL RENTAL HOUSING LOANS $1.90M
81.042 WEATHERIZATION ASSISTANCE FOR LOW-INCOME PERSONS $816,830
93.569 COMMUNITY SERVICES BLOCK GRANT $766,947
14.879 MAINSTREAM VOUCHERS $600,039
10.557 SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN $419,730
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $381,941
10.420 RURAL SELF-HELP HOUSING TECHNICAL ASSISTANCE $198,039
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $179,820
10.427 RURAL RENTAL ASSISTANCE PAYMENTS $177,038
10.433 RURAL HOUSING PRESERVATION GRANTS $151,900
99.U01 NEIGHBORWORKS AMERICA $100,000
93.044 SPECIAL PROGRAMS FOR THE AGING_TITLE III, PART B_GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS $94,867
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $61,671
21.023 EMERGENCY RENTAL ASSISTANCE PROGRAM $42,009
14.169 HOUSING COUNSELING ASSISTANCE PROGRAM $30,800
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $22,248
10.551 SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $16,227
93.052 NATIONAL FAMILY CAREGIVER SUPPORT, TITLE III, PART E $16,114
14.278 VETERANS HOME REHABILITATION PROGRAM $13,629
99.U19 NEIGHBORWORKS AMERICA - HOUSING STABILITY COUNSELING PROGRAM $11,967
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $6,600
97.024 EMERGENCY FOOD AND SHELTER NATIONAL BOARD PROGRAM $3,793
14.252 SECTION 4 CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT AND AFFORDABLE HOUSING $1,178