Finding 390524 (2023-001)

-
Requirement
A
Questioned Costs
$1
Year
2023
Accepted
2024-03-30
Audit: 301280
Organization: Mission Housing Authority (TX)

AI Summary

  • Core Issue: The PHA did not follow eviction and workout policies on time, leading to increased tenant arrears.
  • Impacted Requirements: Timely enforcement of eviction and workout agreements is required by HUD.
  • Recommended Follow-Up: The PHA should continue to implement its debt collection strategy and ensure adherence to policies to reduce bad debt.

Finding Text

2023-001 - Public and Indian Housing - ALN No. 14.850 Criteria or Specific Requirement: HUD requies PHA's to timely follow its eviction and workout agreement policies. Condition: The PHA didn't timely follow its eviction and workout agreement policies. Cause: Unknown. Effect: The majority of the PHA's tenants failed to timely pay their monthly rental amounts. As a result, the year-end tenant accounts receivable balance increased to $528,266 (67% of tenant rental revenue). Bad debt expense caused mainly from increasing the allowance for doubtful accounts was $445,641 (56% of tenant rental revenue). Questioned Costs: $445,641 in bad debt expense. Repeat Finding: Not a repeat finding. Recommendation: The PHA should timely enforce its eviction and workout agreement policies. Response: The PHA is currently addressing outstanding Account Tenant Receivables in the following manner: We are contacting the families in sequence of the largest outstanding debt to lesser, these families are provided with an option to settle the debt via a Payment Agreement. The Agreement details total amount owed, a requirement of an initial down payment of 5% of the outstanding amount, the remainder is scheduled at a value of 10% of the families monthly adjusted income until full payment. Many families have abandoned their units upon completing these initial interviews, for these we will place their outstanding debt on HUD EIV module, and will be soliciting a collection agency contract for efforts to collect outstanding debt.

Corrective Action Plan

Corrective Action Plan - Past due tenant accounts receivable. Contact person - Executive Director. Corrective action planned - The PHA is working to obtain workout agreements on all past due balances. Anticipated completion date - Within the next fiscal year.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $1.19M
14.850 Public and Indian Housing $932,809
14.870 Resident Opportunity and Supportive Services - Service Coordinators $43,950
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $23,837
14.871 Section 8 Housing Choice Vouchers $7,568