Finding 24922 (2022-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2022-12-29

Audit: 20984

Organization: Housing Authority of Kansas City Kansas (RI)

Auditor: Citrin Cooperman & Company LLP

AI Summary

Core Issue: The Authority lacks proper documentation proving U.S. citizenship or eligible immigration status for one tenant in the Housing Voucher program.
Impacted Requirements: Compliance with eligibility criteria under 2 CFR Section 5.508 is not being met due to insufficient internal controls.
Recommended Follow-Up: Enhance internal controls to ensure all required documentation is collected and retained, and conduct regular reviews of eligibility documentation.

Finding Text

Finding No. 2022-001: Significant Deficiency in Internal Control over Compliance Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Federal Assistance Listing Number: 14.871 Compliance Requirement: Eligibility Criteria: 2 CFR Section 5.508 states that in order to be eligible for federally assisted housing, each family member must provide evidence of U.S. citizenship or eligible immigration status. Condition: The Authority was unable to provide evidence of U.S. citizenship or eligible immigration status. Context: In a sample of 40 tenant files selected for eligiblity, we noted 1 of the tenants did not contain documentation of U.S. citizenship or eligible immigration status. Cause: The Authority's internal controls in place did not identify the missing documentation. Effect: The Authority does not have sufficient evidence of U.S. citizenship or eligible immigration status. Questioned Costs: None. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its internal controls to ensure that they are sufficient to ensure all required documentation is obtained and retained in the tenant files. Views of Responsible Officials: Management acknowledges the finding and going forward, management will review the completeness of the eligibility documentation for all Housing Choice Voucher participants when they are enrolled in the program and continue review during annual review. Management will also ensure the documents are maintained for a period of three years after the participant exits from the program.

Corrective Action Plan

Finding 2022-001 Significant Deficiency in Internal Control over Compliance Corrective Action Plan: The corrective plan is to examine all applicant and participant files for accuracy using a file checklist for forms such as Section 214 Declaration of Citizenship during the eligibility process and annual reexamination period. Management has decided not to purge tenant files for the current program participants. For the participants who are not in the program, the file will not be purged for a minimum of three years. In this specific instance, the participant entered the program in 2012 and ended program participation on March 31, 2022. The original file had been purged. Name of Responsible Person: Cherrie Escobar, Director of Section 8 Projected Completion Date: March 31, 2023

Other Findings in this Audit

601364 2022-001

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
14.871	Section 8 Housing Choice Vouchers	$10.83M
14.850	Public and Indian Housing	$9.45M
14.872	Public Housing Capital Fund	$5.15M
14.896	Family Self-Sufficiency Program	$71,946