Finding 390305 (2023-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-29

AI Summary

  • Core Issue: There is a significant deficiency in internal controls regarding the waiting list for housing applicants, with 14 out of 40 applicants lacking necessary documentation.
  • Impacted Requirements: The Authority is not complying with HUD requirements for maintaining waiting lists and admitting tenants as outlined in 24 CFR 960 and its own policies.
  • Recommended Follow-Up: Implement archiving procedures for historical waiting lists, document applicant statuses, and provide training to staff to ensure consistent adherence to policies.

Finding Text

2023-002 Special Tests and Provisions - Waiting List Public and Indian Housing Program - AL No. 14.850 Significant deficiency in internal control Other matter required to be reported in accordance with Uniform Guidance Condition: Out of 40 applicants that were selected from the waiting list for testing, 14 lacked documentation to show their current status and whether they were given the opportunity to be housed. In addition, there were difficulties obtaining any historical waiting lists for the Public Housing properties. Context: The auditor haphazardly selected 20 tenants each from two of the Authority’s larger Public Housing properties. The auditor reviewed the applicant file and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding waiting list maintenance and new admissions. Criteria: The Authority is required to maintain a waiting list and admit tenants based on the waiting list in accordance with HUD requirements in 24 CFR 960 (Subpart B) and the Authority’s policies as stated in the ACOP. Cause: The Authority did not have adequate internal controls in place over waiting lists and new admissions at each of its Public Housing properties to ensure applicants were properly given the opportunity to be housed. Effect: The Authority is not in compliance with waiting list maintenance and new admission policies. Questioned Costs: None. Auditor’s Recommendations: The Authority should implement archiving procedures for its historical waiting lists on a routine basis. In addition, the Authority should document for proper auditing purposes, those given the opportunity to be housed from the waiting list and their current status. The Authority should provide proper training for all staff at the properties to ensure procedures and policies are being followed consistently across all of the Authority’s Public Housing properties. View of Responsible Officials: See Corrective Action Plan.

Corrective Action Plan

March 29, 2024 U.S. Department of Housing and Urban Development The Memphis Housing Authority respectfully submits the following corrective action plan for the year ended June 30, 2023. Berman Hopkins Wright & LaHam, CPAs and Associates, LLP 8035 Spyglass Hill Road Melbourne, FL 32940 Audit period: July 1, 2022 - June 30, 2023 The findings from the June 30, 2023 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FEDERAL AWARDS 2023-002 Special Tests and Provisions - Waiting List Public and Indian Housing Program - AL No. 14.850 Significant deficiency in internal control Other matter required to be reported in accordance with Uniform Guidance Condition: Out of 40 applicants that were selected from the waiting list for testing, 14 lacked documentation to show their current status and whether they were given the opportunity to be housed. In addition, there were difficulties obtaining any historical waiting lists for the Public Housing properties. Auditor’s Recommendations: The Authority should implement archiving procedures for its historical waiting lists on a routine basis. In addition, the Authority should document for proper auditing purposes, those given the opportunity to be housed from the waiting list and their current status. The Authority should provide proper training for all staff at the properties to ensure procedures and policies are being followed consistently across all of the Authority’s Public Housing properties. Action Taken: • MHA will ensure we have a saved copy of all public housing site-based waiting lists. LaTonia Young, Director of Asset Management, will save copies of the waiting list for all Public Housing sites on a monthly basis effective March 28, 2024. Tomecia Brown, Director of Compliance and Training will ensure that all site staff are trained on how to pull from the waiting list during the monthly site staff meeting effective April 23, 2024.

Categories

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

Other Findings in this Audit

  • 390304 2023-001
    Significant Deficiency
  • 966746 2023-001
    Significant Deficiency
  • 966747 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $9.84M
14.850 Public and Indian Housing $7.31M
14.889 Choice Neighborhoods Implementation Grants $4.04M
14.879 Mainstream Vouchers $1.93M
14.871 Section 8 Housing Choice Vouchers $1.09M
14.896 Family Self-Sufficiency Program $71,438
14.870 Resident Opportunity and Supportive Services - Service Coordinators $53,235