Finding 30637 (2022-001)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-03-27

AI Summary

  • Core Issue: One tenant file lacked required third-party income verification, violating eligibility criteria.
  • Impacted Requirements: Compliance with 24 CFR Section 982.516 for documenting family annual income.
  • Recommended Follow-Up: Ensure all tenant files have third-party income documentation and strengthen internal controls.

Finding Text

Finding 2022-001 Eligibility CFDA 14.871/14.879 Housing Voucher Cluster Criteria: Pursuant to 24 CFR Section 982.516, as a condition of continued assistance, the Authority must obtain and document in the tenant file third-party verification of the reported family annual income. Condition: For 1 of the 40 clients selected for testing, the income documentation contained in the tenant file was not from a third-party. Cause: The Authority?s internal control procedures to ensure compliance with Federal Eligibility requirements were not operating as designed. Effect: The Authority was not in compliance with program?s Eligibility requirements and controls were not operating effectively. Questioned Costs: The amount of questioned costs, if any, is undeterminable. Recommendation: The Authority should ensure that each tenant file contains third-party documentation of income. The Authority should ensure controls operate effectively. Management?s Response: Management agrees with the finding and is implementing procedures to correct it. The Housing Authority agrees with the finding and is implementing procedures to correct it. Applicable staff will be briefed on the finding and training will be provided on both written policy and procedure. The Housing Authority has a quality assurance program to monitor and ensure the proper documentation is contained within the tenant file.

Corrective Action Plan

Planned Corrective Action: Applicable staff will be briefed on the finding and training will be provided on both written policy and procedure. The Housing Authority has a quality assurance program to monitor and ensure the proper documentation is contained within the tenant files. The Housing Authority will continue to implement its file review system for the Section 8 Program. Although the system cannot ensure 100% compliance, its effectiveness is demonstrated in the high percentage of compliance. Anticipated Completion Date: 6/30/23. Responsible Contact Person: Leah Eppinger, Executive Director.

Categories

Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

  • 30638 2022-002
    Material Weakness
  • 30639 2022-001
    Material Weakness
  • 30640 2022-002
    Material Weakness
  • 30641 2022-001
    Material Weakness
  • 30642 2022-002
    Material Weakness
  • 30643 2022-001
    Material Weakness
  • 30644 2022-002
    Material Weakness
  • 607079 2022-001
    Material Weakness
  • 607080 2022-002
    Material Weakness
  • 607081 2022-001
    Material Weakness
  • 607082 2022-002
    Material Weakness
  • 607083 2022-001
    Material Weakness
  • 607084 2022-002
    Material Weakness
  • 607085 2022-001
    Material Weakness
  • 607086 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $2.56M
14.238 Shelter Plus Care $269,958
14.879 Mainstream Vouchers $233,285
14.871 Section 8 Housing Choice Vouchers $123,508
14.850 Public and Indian Housing $12,523