Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers, Mainstream Vouchers,
and Emergency Housing Vouchers
Federal Assistance Listing Numbers: 14.871, 14.879, and 14.EHV
Material Noncompliance
Non Compliance Material to the Financial Statements: Yes
Material Weakness in Internal Control over Compliance
Criteria: As a grantee and administrator of HUD's Section 8 Housing Choice Vouchers, Mainstream Vouchers and Emergency Housing Voucher Programs (the "HVC Cluster"), the Authority must adhere to the rules and regulations governing the programs.
Condition: The Authority did not comply with rules and regulations governing the HVC Cluster in the areas of tenant file maintenance, waiting list maintenance and housing quality inspections. Context: Fifty-six (56) Section 8 Housing Choice Vouchers, ten (10) Mainstream Vouchers and one (1) Emergency Housing Vouchers Program tenant files were tested with noncompliance pervasive through all aspects of essential rules and regulations, including in areas of: income recertification , maintaining signed leases and obtaining vital household information. Additionally, twenty-five (25) Section 8 Housing Choice Vouchers Program and two (2) Mainstream Vouchers Program failed inspections were also tested, of which six (6) Section 8 Housing Choice Vouchers Program and one (1) Mainstream Vouchers Program failed inspections were improperly administered. Cause: The Authority experienced high turnover with key employees throughout many departments and as a result Authority personnel did not follow established internal control polices over HCV Cluster compliance.
Effect: The Section 8 Housing Choice Vouchers, Mainstream Vouchers and Emergency Housing Voucher Programs did not comply with the rules and regulations governing the HVC Cluster.
Recommendation: We recommend that the Authority implement a process whereby Authority personnel receive the appropriate training in all areas of HVC Cluster compliance. Safeguards should be put into place so that if an employee or manager leaves a department, other employees have been trained to fill that void.
Authority's Response: The Authority experienced significant turnover in employees during the year and as a result certain processes were not followed and source documents were misplaced or destroyed. Management agrees with the Auditors' finding and has hired a new Executive Director who will implement the required safeguards and ensure that the Authority follows its Section 8 Administrative Plan and the HUD compliance requirements to remedy the aforementioned deficiencies.