Finding 35005 (2022-003)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-08-01

AI Summary

  • Core Issue: The Section 8 Housing Choice Vouchers program is not properly selecting applicants from the waiting list, leading to potential non-compliance.
  • Impacted Requirements: The PHA must have clear written policies and follow them when selecting applicants, as outlined in federal regulations.
  • Recommended Follow-Up: The Authority should implement stronger internal controls and increase oversight to ensure compliance with waiting list procedures.

Finding Text

inding 2022-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Catalog Numbers: 14.871 Noncompliance ? N. Special Tests and Provisions ? Waiting List Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Selections from the Waiting List. The PHA must have written policies in its Section 8 Housing Choice Vouchers Program administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants from the waiting list. Except for as provided in 24 CFR section 982.203 (Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. ?Selection? from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: Based upon inspection of the waiting list provided to us during the time of audit, the new move-in list and discussions with management, it could not be determined with any certainty that certain new move-ins to the Section 8 Housing Choice Vouchers program (as it relates to the Monterey Village RAD2 Property) were selected from the wait list in an order that is in accordance with the Authority?s Section 8 Administration policy. Context: Of a sample size of six (6) new move-ins, two (2) could not be traced to the Authority's waiting list. Our sample size is statistically valid. Known Questioned Costs: $34,270 Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers program is in non-compliance with the special tests and provisions type of compliance related to selection of applicants from the waiting list. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. inding is limited to the Monterey Village RAD2 Property. The property manager is responsible for maintaining the waiting list, but it is the Authority's responsibility to monitor and verify adequate processing and housing of applicants. The Authority will be increase oversight on the maintenance of the waiting list and process of housing applicants to better monitor adequacy with compliance requirements.

Corrective Action Plan

Views of responsible officials and planned corrective action: The Authority will increase oversight in the Section 8 Housing Choice Vouchers program to ensure that established internal control policies are being followed on a timely basis. Adam Bovilsky, Executive Director, is responsible for implementing this corrective action by March 31, 2023.

Categories

Questioned Costs HUD Housing Programs Eligibility Significant Deficiency Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 35004 2022-002
    Material Weakness
  • 611446 2022-002
    Material Weakness
  • 611447 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $18.28M
14.195 Section 8 Housing Assistance Payments Program $4.78M
14.850 Public and Indian Housing $4.41M
14.879 Mainstream Vouchers $1.43M
14.872 Public Housing Capital Fund $797,237
14.870 Resident Opportunity and Supportive Services - Service Coordinators $244,224
14.889 Choice Neighborhoods Implementation Grants $165,287
14.182 Section 8 New Construction and Substantial Rehabilitation $102,432