Finding 3138 (2023-002)

Finding 2023-002: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Emergency Housing Vouchers Assistance Listing Number: 14.EHV Noncompliance – E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: No Significant deficiency in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Condition: Based upon inspection of the Authority’s files and on discussions with management there were documents that were unavailable for examination at the time of audit. Context: Of a sample size of six (6) tenant files, the following information was unavailable for examination at the time of audit: • Annual 50058 form • Annual inspection form Our sample size is statistically valid. Known Questioned Costs: $1,775 Cause: There is a significant deficiency in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered and designed a system of internal controls that reasonably assures the program is in compliance. Effect: The Emergency Housing Vouchers Program is in non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Authority Response: We agree with the Auditor’s observations on the inspection of the tenant files and will implement internal control procedures that will assure tenant file compliance. Views of responsible officials and planned corrective action: The PHA has taken into consideration the Auditor’s recommendation in regards to Emergency Housing Vouchers (EHV) program. During the audit period, the staff assigned to the EHV program changed three times, resulting in program deficiencies. Currently a more skilled tenant interviewer is responsible for voucher processing, therefore program compliance will be in line with HUD requirement.