Finding 1224932 (2025-003)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-07-30
Audit: 408192
Organization: Williamston Housing Authority (NC)

AI Summary

  • Core Issue: The Authority failed to follow internal controls for tenant eligibility, leading to incomplete tenant files.
  • Impacted Requirements: Non-compliance with 24 CFR 982-516 regarding tenant identification verification and signed releases.
  • Recommended Follow-Up: Continue monthly reviews of recertifications to ensure compliance with eligibility and reporting requirements.

Finding Text

Criteria: 24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Statement of Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: $0. Context: Testing of 25 tenant files identified an exception in the files as follows:3 tenant files did not contain proper verification of tenant identification and 2 tenant files did not contain a release of information signed by all adult members of the household. Cause: The Agency did not obtain the required documents upon intake. The Agency also did not obtain all required signatures on certain forms. Effect:The Authority is not in compliance with requirements regarding eligibility.Identification of a Repeat Finding: None. Recommendation: I recommend that the Agency continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements.Management agrees with this finding. Views of responsible officials and planned corrective action. We have reviewed the intake procedure and will continue to review recertifications.

Corrective Action Plan

Name of Contact Person: Michael Gaddy, Executive Director. Corrective Action: We will implement proper internal control procedures for the Public and Indian Housing program eligibility requirements. Management has established a checklist for applications and will establish a checklist for Move-ins and Move-outs. Proposed completion date: Immediately.

Categories

Eligibility HUD Housing Programs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1224931 2025-001
    Material Weakness Repeat
  • 1224933 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $805,950
14.182 LOWER INCOME HOUSING ASSISTANCE PROGRAM_SECTION 8 NEW CONSTRUCTION/SUBSTANTIAL REHABILITATION $762,733
14.850 PUBLIC HOUSING OPERATING FUND $762,729
14.872 PUBLIC HOUSING CAPITAL FUND $483,873