Finding 384369 (2023-001)

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

AI Summary

  • Core Issue: Tenant files for the Housing Choice Voucher Program are missing key documentation, including income verification and annual inspection records.
  • Impacted Requirements: Compliance with federal regulations and HUD guidelines for maintaining accurate tenant files is not being met.
  • Recommended Follow-Up: Conduct a comprehensive audit of all tenant files and establish a monitoring system to ensure ongoing compliance with documentation requirements.

Finding Text

Finding 2023-001 – Housing Choice Voucher Tenant Files – Eligibility – Noncompliance & Significant Deficiency – Housing Choice Voucher Program – ALN 14.871 Condition & Cause: Our review of ten (10) Housing Choice Voucher Tenant Files revealed the following discrepancies: • There were three (3) files that were missing proper third-party income verification. • There was one (1) file that was missing documentation for the annual inspection. Criteria: The Code of Federal regulations, the Housing Authority Administrative Plan and specific HUD guidelines in documenting and maintaining Housing Choice Voucher 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: None Repeat Finding: Yes Was sampling statistically valid? Yes

Corrective Action Plan

Finding 2023-001 – Housing Choice Voucher Tenant Files – Eligibility – Noncompliance & Significant Deficiency – Housing Choice Voucher Program – ALN 14.871 The New Reidsville Housing Authority suffered a tremendous loss with the passing of the Housing Choice Voucher (HCV) 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 immediate months after the passing of the employees, temporary and consultant labor was utilized until the Authority filled the vacant positions. Unfortunately, employee turnover among the new hires created further voids in HCV personnel during and after the fiscal year. 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 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 and complete tenant file information with our staff and within 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. 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

HUD Housing Programs Eligibility Significant Deficiency

Other Findings in this Audit

  • 384368 2023-002
    Significant Deficiency
  • 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