Finding 31163 (2022-001)

Significant Deficiency Repeat Finding
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-09-27

AI Summary

  • Core Issue: The Authority lacks adequate internal controls to ensure compliance with HCVP eligibility requirements.
  • Impacted Requirements: Inaccurate reporting on the HUD-50058 affects housing assistance payments due to missing or incorrect income and deduction verifications.
  • Recommended Follow-Up: Implement processes to ensure all necessary documentation is collected and accurately reported to meet HUD requirements.

Finding Text

2022-001 HCVP Eligibility (Continued) Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that eligibility requirements were being met. Questioned Costs: Unknown Context: Out of 60 tenants tested, we noted 10 instances where there was a difference between the third-party verification and what was reported on the HUD-50058, all of which could have a potential impact on the housing assistance payments (HAP) calculation. Our sample was a statistically valid sample. ? 7 instances of missing third-party verification information of income. ? 4 instances of missing or incorrect verification of deductions/exclusions Cause: The Authority does not have controls in place to ensure it is meeting all eligibility requirements set by HUD. Effect: The Authority is not in compliance with program requirements over eligibility. The instances above could impact the HAP calculation. Effect: This finding is a repeat finding in the immediate prior year. Prior year finding number was 2021-003. Recommendation: The Authority should implement processes to ensure that all documentation is received and that the correct inputs are being accurately reported on the HUD-50058. View of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Housing Voucher Cluster ? Assistance Listing No. 14.871/14.879 ? Eligibility Recommendation: The Authority should implement processes to ensure that all documentation is received and that the correct inputs are being accurately reported on the HUD-50058. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority has made several improvements to the processes in which the staff verify eligibility for the HCV program. In 2021, the Authority created a Director of Program Compliance and Training position to ensure that all HCV staff receive consistent training that is congruent with HUD policies and regulations and the Authority?s Administrative Plan. The Director of Program Compliance and Training instructs staff on HCV processes, procedures, and regulations, and monitors staff progress throughout their development. With the assistance of the Director of Program Compliance and Training, the Authority now provides staff with detailed training regarding calculations of adjusted income, the proper steps to determine and calculate required deductions, and the importance of third-party verification required for HCV program eligibility. The Authority has also taken the initiative to complete its own internal audits at random intervals, at least once a year. The HCV Director completes these audits using HUD?s Section Eight Management Assessment Program (SEMAP) audit template. Following these internal audits, the HCV Director meets with staff to discuss any areas of concern and ensure errors are properly corrected. During this meeting, staff receive training on any errors discovered, and recommendations for additional training. Name(s) of the contact person(s) responsible for corrective action: Nicole O?Dell/Katrina Sommer Planned completion date for corrective action plan: On-going

Categories

HUD Housing Programs Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

  • 31164 2022-002
    Significant Deficiency Repeat
  • 31165 2022-003
    Material Weakness Repeat
  • 31166 2022-001
    Significant Deficiency Repeat
  • 31167 2022-002
    Significant Deficiency Repeat
  • 31168 2022-003
    Material Weakness Repeat
  • 31169 2022-001
    Significant Deficiency Repeat
  • 31170 2022-002
    Significant Deficiency Repeat
  • 31171 2022-003
    Material Weakness Repeat
  • 31172 2022-004
    Significant Deficiency Repeat
  • 607605 2022-001
    Significant Deficiency Repeat
  • 607606 2022-002
    Significant Deficiency Repeat
  • 607607 2022-003
    Material Weakness Repeat
  • 607608 2022-001
    Significant Deficiency Repeat
  • 607609 2022-002
    Significant Deficiency Repeat
  • 607610 2022-003
    Material Weakness Repeat
  • 607611 2022-001
    Significant Deficiency Repeat
  • 607612 2022-002
    Significant Deficiency Repeat
  • 607613 2022-003
    Material Weakness Repeat
  • 607614 2022-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $56.59M
14.879 Mainstream Vouchers $2.37M
14.850 Public and Indian Housing $1.59M
14.872 Public Housing Capital Fund $1.52M
14.896 Family Self-Sufficiency Program $180,000
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $153,595
14.871 Emergency Housing Vouchers $63,235