Finding 1239034 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-09-30
Audit: 413915
Organization: Anthony Housing Authority (TX)
Auditor: MIKE ESTES PC

AI Summary

  • Core Issue: The administration of the FSS and Homeownership programs has been inadequate, leading to non-compliance with federal regulations.
  • Impacted Requirements: Documentation and monitoring of the FSS program for new participants and proper oversight of the Homeownership program are lacking.
  • Recommended Follow-Up: Determine the FSS program liability by September 30, 2025, and establish a policy for Homeownership program expenditures for enrolled tenants.

Finding Text

Low Rent Housing Program ALN# 14.850 and Housing Choice Voucher Program ALN# 14.871 2025-002-Administration of the Homeownership Program and FSS Programs-Need Improvement-Special Tests Criteria The Low Rent and Housing Choice Voucher Programs both participate in the FSS programs. Federal regulations dictate how the FSS program should work. Enrollees have a choice of goals to accomplish and thus graduate with FSS funds. The Authority should keep documentation that the FSS program has been offered to all new participants, as long as the program exists. The Homeownership program was established years ago from excess Admin fees of the program, which was permitted from the pre-2004 Admin fees. Condition FSS For years, an audit finding noted that this program was not adequately monitored. Beginning in mid -2024, after the new E.D. and a new employee was hired, the authority improved administration of the program. However, there is no established liability of the authority at year-end. Homeownership For years, an audit finding has noted that this program is not adequately monitored. Old paperwork suggests that approximately 8 tenants may have at one time been enlisted. However, with multiple E.D.s and employees, plus the port-out of all but one of the potential enrollees, the paperwork is inadequate. Cause As noted, there has been employee turnover and no emphasis by prior management to properly administer the programs. Effect The federal regulations that apply to administering these programs have not been complied with. Recommendation For the FSS program, the liability as of September 30, 2025 should be determined. Regarding the Homeownership program, we have recommended that the Board establish a policy for which expenditures will be paid to the tenant, for those that provide proof they were enrolled in the program. View of Responsible Official As noted in Finding 2025-001, I have agreed to this recommendation.

Corrective Action Plan

Corrective Action Plan Finding: 2025-002-Administration of the Homeownership Program and FSS Programs-Need Improvement-Special Tests Condition: FSS For years, an audit finding noted that this program was not adequately monitored. Beginning in mid -2024, after the new E.D. and a new employee was hired, the authority improved administration of the program. However, there is no established liability of the authority at year-end. Homeownership For years, an audit finding has noted that this program is not adequately monitored. Old paperwork suggests that approximately ten tenants may have at one time been enlisted. However, with multiple E.D.s and employees, plus the port-out of all but one of the potential enrollees, the paperwork is not available for the one-time enrollees. Corrective Action Planned: As noted in Finding 2025-001, I have agreed to this recommendation. Person responsible for corrective action: Louie Alfaro, Executive Director Telephone: (915) 886-4650 Housing Authority of the Town of Anthony, Texas Fax: (915) 886-2296 1007 Franklin Anthony, TX 79821 Anticipated Completion Date: September 30, 2026

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1239033 2025-001
    Material Weakness Repeat
  • 1239035 2025-003
    Material Weakness Repeat
  • 1239036 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $3.05M
14.850 PUBLIC AND INDIAN HOUSING $110,155