Finding 384368 (2023-002)

Significant Deficiency
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2024-03-25
Audit: 297483
Auditor: 263670494

AI Summary

  • Core Issue: Tenant files for Low Income Public Housing showed significant errors, including income miscalculations and missing signatures, indicating a Material Weakness.
  • Impacted Requirements: Noncompliance with federal regulations and HUD guidelines regarding tenant file documentation.
  • Recommended Follow-Up: Conduct a comprehensive audit of tenant files to identify further discrepancies and establish a system for ongoing compliance monitoring.

Finding Text

Finding 2023-002 – Low Income Public Housing Tenant Files – Eligibility – Noncompliance & Significant Deficiency – Public and Indian Housing – ALN 14.850 Condition & Cause: Our review of ten (10) Low Income Public Housing Tenant Files revealed the following discrepancies: • There were three (3) files that contained miscalculations of annual income. • There were two (2) files that were missing tenant signatures on one or more required documents. • There was one (1) file that was missing Declarations of Citizenships for two (2) members. We extrapolated the miscalculations of annual income to the Public Housing population and found that the percentage of potential misstatement equates to 7.8% of rental revenue. We feel that the Authority has a Material Weakness in this area. Criteria: The Code of Federal regulations, the Housing Authority Admissions and Continued Occupancy Policy and specific HUD guidelines in documenting and maintaining Low Income Public Housing tenant files. Recommendation: We recommend that the Agency conduct a thorough tenant file audit of existing tenants to determine whether there are any additional misstatements. We also recommend that the Agency determine the best way to monitor compliance with local and federal regulations as it pertains to the upkeep of the tenant files. Questioned Costs: $2,146 Repeat Finding: No Was sampling statistically valid? Yes

Corrective Action Plan

Finding 2023-002 – Low Income Public Housing Tenant Files – Eligibility – Noncompliance & Significant Deficiency – Public and Indian Housing – ALN 14.850 The New Reidsville Housing Authority suffered a tremendous loss with the passing of the Housing Choice Voucher and Public Housing Specialists within weeks of one another and immediately before the start of the fiscal year. As a small housing authority, the deaths of two of the five office employees who had a combined 33 years of Authority experience left a significant void in knowledge and experience. Although the two employees were cross trained on each other’s jobs, no remaining employees were fully trained or capable of assuming those positions or responsibilities. In the months after the passing of the PH Specialist, temporary labor was utilized until such time as the position was filled on a permanent basis. Although a comprehensive review of all tenant and participant files to ensure completeness and compliance had begun prior to the audit, the sudden declining health and subsequent passing of the Executive Director hindered efforts even further. All new and existing housing personnel have received and continue to receive housing-related software-specific training and cross training on both the Public and Housing Choice Voucher programs. Comprehensive file review, written documentation of all tasks, and an office-wide evaluation of processes will continue as the employees become accustomed to their new positions. Corrective Action Plan: We concur with this finding. We are emphasizing the importance of accurate tenant file information, data entry, and calculations with our staff in their new positions. We are confident these errors and oversights will not occur in the future. An extensive tenant file review was underway but was not completed at the time of the audit. A thorough tenant file audit to detect and correct any misstatements will begin as well. All staff are being trained in their positions, and future cross-training and peer review processes are currently being put into practice to execute an added layer of review for all tenant files. Person Responsible: Samantha Shumaker, Interim Director Anticipated Completion Date: June 30, 2024

Categories

Questioned Costs HUD Housing Programs Eligibility Material Weakness Significant Deficiency

Other Findings in this Audit

  • 384369 2023-001
    Significant Deficiency Repeat
  • 960810 2023-002
    Significant Deficiency
  • 960811 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.00M
14.850 Public and Indian Housing $472,592
14.872 Public Housing Capital Fund $258,441
14.267 Continuum of Care Program $178,601
14.241 Housing Opportunities for Persons with Aids $28,453