Finding 1238682 (2025-009)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-09-30

AI Summary

  • Core Issue: The Housing Voucher Program is not following its own rules for selecting applicants from the waiting list, leading to potential non-compliance.
  • Impacted Requirements: The PHA must have clear written policies and documentation to ensure all new move-ins are selected from the waiting list in the correct order.
  • Recommended Follow-Up: Hire and train staff on proper selection processes to ensure compliance with federal guidelines and improve internal controls.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Numbers: 14.871 and 14.879 Noncompliance - N. Special Tests and Provisions - Selection from the Waiting List Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: Selections from the Waiting List. The PHA must have written policies in its Section 8 Administrative Plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants from the waiting list. Except for as provided in 24 CFR section 982.203 (Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: Based upon inspection of the waiting list provided to us during the time of audit, the new move-in list and discussions with management, it could not be determined with any certainty that certain new move-ins to the Housing Voucher Cluster Programs were selected from the wait list in an order that is in accordance with the Authority’s Section 8 Administrative Plan. Context: Of a sample size of fifteen (15) new move-ins, fifteen (15) could not be determined to be housed in proper order from the Authority's waiting list. Our sample size is statistically valid. Known Questioned Costs: $110,747* * Represents HAP attributable to fifteen (15) new move-ins for which the Authority could not demonstrate compliance with the selection from the waiting list requirements. The questioned costs do not represent amounts determined to be ineligible but rather costs associated with the new move-ins that may not have been housed in compliance with the selection from the waiting list requirements. Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to selection from the waiting list. The Authority has not retained records to support proper selection from the waiting list. Effect: The Housing Voucher Program is in material non-compliance with the special tests and provisions type of compliance related to selection from the waiting list. Recommendation: We recommend that the Authority implement a process whereby Authority personnel are hired and trained on properly housing applicants from the Authority's waiting list that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.

Corrective Action Plan

The Authority acknowledges the deficiencies identified in its historical waiting list administration. The Authority completed a comprehensive waiting list purge on July 31, 2026, and is now reconciling and reorganizing the remaining applicant entries. Quality control procedures are being incorporated to establish appropriate checks and balances over applicant selection and processing. Consistent with the Authority's corrective action plan, each applicant selected from the waiting list will be subject to documented supervisory review and approval, with supporting documentation maintained in the applicant's file. Because the Authority no longer has operational access to Yardi, current management may be unable to independently reconstruct every historical waiting list selection or action recorded in the former system. Dexter Brady, Interim Executive Director, is the responsible official and this will be completed by December 31, 2026.

Categories

Eligibility HUD Housing Programs Special Tests & Provisions Material Weakness

Other Findings in this Audit

  • 1238667 2025-006
    Material Weakness Repeat
  • 1238668 2025-007
    Material Weakness Repeat
  • 1238669 2025-008
    Material Weakness Repeat
  • 1238670 2025-009
    Material Weakness Repeat
  • 1238671 2025-010
    Material Weakness Repeat
  • 1238672 2025-011
    Material Weakness Repeat
  • 1238673 2025-006
    Material Weakness Repeat
  • 1238674 2025-007
    Material Weakness Repeat
  • 1238675 2025-008
    Material Weakness Repeat
  • 1238676 2025-009
    Material Weakness Repeat
  • 1238677 2025-010
    Material Weakness Repeat
  • 1238678 2025-011
    Material Weakness Repeat
  • 1238679 2025-006
    Material Weakness Repeat
  • 1238680 2025-007
    Material Weakness Repeat
  • 1238681 2025-008
    Material Weakness Repeat
  • 1238683 2025-010
    Material Weakness Repeat
  • 1238684 2025-011
    Material Weakness Repeat
  • 1238685 2025-012
    Material Weakness Repeat
  • 1238686 2025-013
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $704,503
14.879 MAINSTREAM VOUCHERS $696,886
14.249 SECTION 8 MODERATE REHABILITATION SINGLE ROOM OCCUPANCY $477,839
14.850 PUBLIC HOUSING OPERATING FUND $401,616
14.872 PUBLIC HOUSING CAPITAL FUND $35,021