Finding 2688 (2021-005)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2021
Accepted
2023-11-29

AI Summary

  • Core Issue: The Public Housing Authority (PHA) failed to maintain proper documentation for tenant applications and selection letters, leading to noncompliance with federal regulations.
  • Impacted Requirements: The PHA did not follow established policies for tenant admissions, specifically regarding applications and waiting lists as outlined in 24 CFR sections 960.202 through 960.206.
  • Recommended Follow-Up: Assign a dedicated person to ensure all required documents are verified and complete before processing new tenants.

Finding Text

2021-005 Federal agency: U.S. Department of Housing and Urban Development Federal program title: Public and Indian Housing Assistance Listing Number: 14.850 Award Period: January 1, 2021 – December 31, 2021 Type of Finding:  Noncompliance and Material Weakness in Internal Control over Compliance Criteria or specific requirement: Special Tests and Provisions-Waiting List New Tenants The PHA must establish and adopt written policies for admission of tenants. The PHA tenant selection policies must include requirements for applications and waiting lists, description of the policies for selection of applicants from the waiting lists, and policies for verification and documentation of information relevant to acceptance or rejections of an applicant (24 CFR sections 960.202 through 960.206). Condition: During the testing of the Public and Indian Housing for the City and County files certain special provision compliance deficiencies were noted. City -2 instances out of 9 files reviewed where the initial signed application was missing. County -3 instances out of 5 files reviewed where the initial signed application was missing. -2 instances out of 5 files reviewed where the tenant file was missing a copy of the selection letter. Questioned costs: None Context: Out of the 14 total files tested, 5 contains errors as noted above. Cause: The Authority failed to provide required documentation to be in compliance with program requirements. Effect: The Authority is not in compliance with federal regulations regarding the maintenance of the Public and Indian Housing waiting lists. Recommendation: We recommend management to assign a person that verifies all the documents are in place before processing new move ins. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Recommendation: We recommend management to assign a person that verifies all the documents are in place before processing new move ins. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: To address this issue, as of 2017, the Intake unit initiated a practice of saving all selection letters as a backup. It's important to note that the audit focused on files predating this backup system, when no duplicate copies were available. To prevent such issues in the future, a comprehensive intake checklist is now completed by staff before transferring files for review, and the reviewing staff will verify the inclusion of these essential documents in the file. Name(s) of the contact person(s) responsible for corrective action: Troy Lynch Planned completion date for corrective action plan: The targeted completion date is set for August 31, 2023

Categories

Special Tests & Provisions HUD Housing Programs Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 2679 2021-002
    Significant Deficiency
  • 2680 2021-002
    Significant Deficiency
  • 2681 2021-002
    Significant Deficiency
  • 2682 2021-003
    Significant Deficiency
  • 2683 2021-003
    Significant Deficiency
  • 2684 2021-003
    Significant Deficiency
  • 2685 2021-004
    Significant Deficiency
  • 2686 2021-004
    Significant Deficiency
  • 2687 2021-004
    Significant Deficiency
  • 2689 2021-005
    Material Weakness
  • 2690 2021-006
    Material Weakness
  • 2691 2021-006
    Material Weakness
  • 2692 2021-007
    Significant Deficiency
  • 579121 2021-002
    Significant Deficiency
  • 579122 2021-002
    Significant Deficiency
  • 579123 2021-002
    Significant Deficiency
  • 579124 2021-003
    Significant Deficiency
  • 579125 2021-003
    Significant Deficiency
  • 579126 2021-003
    Significant Deficiency
  • 579127 2021-004
    Significant Deficiency
  • 579128 2021-004
    Significant Deficiency
  • 579129 2021-004
    Significant Deficiency
  • 579130 2021-005
    Material Weakness
  • 579131 2021-005
    Material Weakness
  • 579132 2021-006
    Material Weakness
  • 579133 2021-006
    Material Weakness
  • 579134 2021-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $115.97M
21.023 Emergency Rental Assistance Program $50.76M
14.218 Community Development Block Grants/entitlement Grants $43.46M
14.889 Choice Neighborhoods Implementation Grants $6.44M
14.231 Emergency Solutions Grant Program $6.30M
14.267 Continuum of Care Program $5.00M
14.872 Public Housing Capital Fund $3.34M
14.241 Housing Opportunities for Persons with Aids $1.05M
14.850 Public and Indian Housing $1.04M
14.871 Section 8 Housing Choice Vouchers $593,654
14.870 Resident Opportunity and Supportive Services - Service Coordinators $152,726
14.896 Family Self-Sufficiency Program $142,761
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $117,125
21.019 Coronavirus Relief Fund $97,139
14.879 Mainstream Vouchers $24,036
14.895 Jobs-Plus Pilot Initiative $0