Finding 19842 (2022-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-06-28

AI Summary

  • Core Issue: The Authority has significant weaknesses in managing the waiting list for the Housing Choice Voucher Program, leading to noncompliance with HUD regulations.
  • Impacted Requirements: The Authority failed to maintain proper documentation and oversight, resulting in errors in tenant admissions and eligibility verification.
  • Recommended Follow-Up: Assign a dedicated individual to oversee the waiting list and ensure all applicant communications and documentation are properly tracked.

Finding Text

Finding 2022 ? 004 ? Selection from the Waiting List Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Other Matters Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. Expect 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 names reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted as summarized below: Waiting List New Tenants Number of Instances Finding 2 Where the Authority was unable to provide a tenant file to review Of the files the Authority was able to provide. The files contained the following compliance deficiencies: Number of Instances Finding 11 Where the tenant was not admitted correctly into the program with accordance into the admin plan due to either the original application and/or acceptance/referral letter was missing. 2 Where the tenant file did not contain the tenant?s original application 10 Where the tenant file did not contain the letter notifying them that they had been accepted into the Housing Choice Voucher Program 1 Where a referral letter was missing for a special program Tenant Selected from the Waiting List Number of Instances Finding 34 Where the status of the applicant was showing "selected" since 2022, noting the Authority's lack of maintenance of the Waiting List 34 Where the Authority provided status on the open items report, but failed to provide supporting documentation or actions taken. Questioned costs: Undeterminable Context: Out of 60 new tenant files tested, 13 contained the errors noted above. Out of 60 tenants selected from the waiting list files tested, 34 files contained the errors noted above. The sample was a statistically valid sample. Finding 2021 ? 004 ? Selection from the Waiting List (Continued) Cause: The Authority failed to provide adequate monitoring and oversight of their waiting list to ensure compliance with HUD rules and regulations as well as their administrative policy. Effect: The Authority may have tenants on the waiting list that are not eligible for an HCVP voucher, are no longer interested in the HCVP housing, or have moved away. Repeat Finding: This is a repeat finding from previous years. The finding numbers are 2018-008, 2019-007, 2020-005, and 2021-004. Recommendation: We recommend that the Authority designate an individual to maintain the waiting list and track all correspondence with potential tenants. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

2022-004 ? Selection from the Waiting List Housing Choice Voucher Cluster ? Assistance Listing No. 14.871 and 14.879 Recommendation: We recommend that the Authority designate an individual to maintain the waiting list and track all correspondence with potential tenants. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The PBCHA acknowledges the continuing issues associated with this finding. The COVID-19 pandemic has placed unprecedented stress on companies across the country. The PBCHA was no exception. This stress negatively impacted the PBCHA?s management, workforce and operations which resulted in sudden changes in working arrangements, shortages due to workforce sickness, staffing vacancies and turnover all while dealing with increased housing demand due rising rental costs, and decreased housing supply and housing instability. Despite these challenges, the PBCHA remains strongly focused on continued and improved operations, increased compliance, and accountability. The PBCHA will continue to develop, train, and enforce procedures related to efficient waitlist management for families placed on the list for the HCV programs; the ongoing maintenance of the waiting lists; and selection of enough families from the list to maximize the PBCHA?s use of available funding. The PBCHA has elected to open its waiting lists beginning in June 2022 for its HCV programs and to leave lists open indefinitely to accurately depict the demand for affordable housing. This will require that PBCHA staff ae trained and annually comply with the procedures outlined in the Administrative Plan related to updating, removal and selection from the wait lists, admission, and eligibility, and that all steps are documented within the tenant file and agency business system accordingly. The PBCHA make decisions, develop strategies, implement policies/procedures, and utilize all available resources during this period of prevailing uncertainty and volatility. Any action taken to address the noted deficiency will be based on careful analysis, innovative thinking, restructuring, flexibility and/or revised strategies to adapt to everchanging business circumstances. Name(s) of the contact person(s) responsible for corrective action: Tyler Rasmussen. Carol Jones-

Categories

HUD Housing Programs Subrecipient Monitoring Eligibility Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 19839 2022-001
    Material Weakness Repeat
  • 19840 2022-002
    Material Weakness Repeat
  • 19841 2022-003
    Material Weakness Repeat
  • 19843 2022-005
    Significant Deficiency
  • 19844 2022-001
    Material Weakness Repeat
  • 19845 2022-002
    Material Weakness Repeat
  • 19846 2022-003
    Material Weakness Repeat
  • 19847 2022-004
    Material Weakness Repeat
  • 19848 2022-005
    Significant Deficiency
  • 596281 2022-001
    Material Weakness Repeat
  • 596282 2022-002
    Material Weakness Repeat
  • 596283 2022-003
    Material Weakness Repeat
  • 596284 2022-004
    Material Weakness Repeat
  • 596285 2022-005
    Significant Deficiency
  • 596286 2022-001
    Material Weakness Repeat
  • 596287 2022-002
    Material Weakness Repeat
  • 596288 2022-003
    Material Weakness Repeat
  • 596289 2022-004
    Material Weakness Repeat
  • 596290 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $30.29M
14.879 Mainstream Vouchers $3.05M
14.241 Housing Opportunities for Persons with Aids $2.92M
14.850 Public and Indian Housing $1.54M
14.872 Public Housing Capital Fund $1.49M
14.871 Emergency Housing Vouchers $570,541
14.871 Covid-19 Hcv Cares Act Funding $360,476
14.895 Jobs-Plus Pilot Initiative $241,191
14.850 Covid-19 Public Housing Cares Act Funding $129,791
14.896 Family Self-Sufficiency Program $107,770
14.870 Resident Opportunity and Supportive Services - Service Coordinators $43,974