Finding 307919 (2022-101)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 282246
Organization: City of South Tucson (AZ)

AI Summary

  • Core Issue: The South Tucson Housing Authority failed to have an independent review of tenant eligibility determinations.
  • Impacted Requirements: This violates 24 CFR 5.601, which mandates effective internal controls for income eligibility and rent calculations.
  • Recommended Follow-Up: Implement policies to ensure an independent review and approval process for tenant eligibility determinations.

Finding Text

Assistance Listing number and name 14.850 - Public and Indian Housing Federal Agency: U.S Department of Housing and Urban Development Compliance Requirement: Eligbility Questioned Costs: Unknown Criteria: In accordance with 24 CFR 5.601, Public Housing Agencies (PHAs) should maintain effective internal control policies and procedures to determine income eligibility requirements and calculate tenants' rent payments. Condition: The South Tucson Housing Authority did not have someone other than the preparer review and approve the eligibility determiniations. Cause: The South Tucson Housing Authority lacked proper internal control over the tenants' eligibility determination process. Effect: There is an increased risk that eligibility determinations could contain errors that the South Tucson Housing Authority may not detect or correct in a timely manner. Recommendation: The South Tucson Housing Authority should establish policies and procedures to ensure that tenants' eligibility determinations will be reviewed and approved by an employee that is independent of the initial eligibility determination.

Corrective Action Plan

We have prepared the following corrective action plan as required by the standards applicable to financial audits contained in Government Auditing Standards and by the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Specifically, for each finding we are providing you with the names of the contact people responsible for corrective action, the corrective action planned, and the anticipated completion date. Findings - Financial Statement Audit 2022-101: Eligibility Recommendation: The South Tucson Housing Authority should establish policies and procedures to ensure that tenants? eligibility determinations will be reviewed and approved by an employee that is independent of the initial eligibility determination. Action Taken: The South Tucson Housing Authority concurs and has implemented the recommendation. Completion date: Fiscal Year 2023

Categories

HUD Housing Programs Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

  • 307920 2022-101
    Material Weakness
  • 307921 2022-102
    Material Weakness
  • 884361 2022-101
    Material Weakness
  • 884362 2022-101
    Material Weakness
  • 884363 2022-102
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.218 Community Development Block Grants/entitlement Grants $256,532
14.872 Public Housing Capital Fund $131,177
14.871 Section 8 Housing Choice Vouchers $131,177
16.U01 Organized Crime Drug Enforcement Task Force $73,324
66.815 Environmental Workforce Development and Job Training Cooperative Agreements $30,720
97.067 Homeland Security Grant Program $13,425
16.922 Equitable Sharing Program $3,400
14.850 Public and Indian Housing $560