FAC Explorer

Finding 393783 (2021-011)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2021
Accepted
2024-04-19
Audit: 303983
Organization: Housing Authority of the City of Pueblo (CO)
Auditor: Eide Bailly

AI Summary

  • Core Issue: The Authority failed to maintain proper tenant files, impacting eligibility determinations for the Section 8 program.
  • Impacted Requirements: Annual and interim reviews of participant information must be conducted to ensure compliance.
  • Recommended Follow-up: Implement stronger controls to ensure all tenant files are complete and that necessary forms are signed by both parties.

Finding Text

U.S. Department of Housing and Urban Development ‐ CFDA #14.182 / 14.856 Section 8 Project‐based Cluster Applicable Federal Award Number and Year – Section 8 Project‐based Cluster ‐ 2021 Eligibility Significant Deficiency in Internal Control over Compliance Criteria – The Program requires the Authority to determine eligibility of participants of the program through annual and interim review of participant information. Condition – The Authority could not find the 2021 tenant file for 1 participant. In addition, there was 1 participant file in which the HUD‐50059 form was not signed by either the participant or the Authority. Questioned Costs – None Reported. Context/Sampling – A non‐statistical sample of 60 participants were selected for testing. 1 out of the 60 tenant files could not be found. 1 out of the 60 tenant files contained a HUD‐50059 form that was not signed. Effect – Failure to implement and maintain a proper control process could result in payments to individuals that are not eligible. Cause – The Authority has experienced significant staff turnover and the Authority’s controls are currently not adequately designed and operating. Repeat Finding from Prior Year – No. Recommendation – The Authority should implement controls to ensure that all tenant files are maintained and that all forms are signed by both the participant and the Authority. Views of Responsible Officials – Management agrees with the finding.

Corrective Action Plan

U.S. Department of Housing and Urban Development – CFDA #14.182/14.856 Section 8 Project-based Cluster– 2021 Eligibility Significant Deficiency in Internal Control over Compliance Finding Summary: The Authority could not find a tenant file from 2021. In addition, there was 1 participant file that did not have a signed HUD-50059 form that was signed by the participant or the Authority. Responsible Individual: Steven Trujillo, Executive Director Corrective Action Plan: We have established procedures to ensure that all files are maintained and that all forms are signed by both the tenant and the Authority. Anticipated Completion Date: January 2023

Categories

HUD Housing Programs Eligibility Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 393781 2021-003
    Material Weakness Repeat
  • 393782 2021-003
    Material Weakness Repeat
  • 393784 2021-012
    Significant Deficiency
  • 393785 2021-011
    Significant Deficiency
  • 393786 2021-012
    Significant Deficiency
  • 393787 2021-004
    Material Weakness Repeat
  • 393788 2021-005
    Material Weakness Repeat
  • 393789 2021-006
    Significant Deficiency Repeat
  • 393790 2021-004
    Material Weakness Repeat
  • 393791 2021-005
    Material Weakness Repeat
  • 393792 2021-006
    Significant Deficiency Repeat
  • 393793 2021-007
    Material Weakness Repeat
  • 393794 2021-008
    Significant Deficiency Repeat
  • 393795 2021-009
    Significant Deficiency Repeat
  • 393796 2021-010
    Significant Deficiency
  • 970223 2021-003
    Material Weakness Repeat
  • 970224 2021-003
    Material Weakness Repeat
  • 970225 2021-011
    Significant Deficiency
  • 970226 2021-012
    Significant Deficiency
  • 970227 2021-011
    Significant Deficiency
  • 970228 2021-012
    Significant Deficiency
  • 970229 2021-004
    Material Weakness Repeat
  • 970230 2021-005
    Material Weakness Repeat
  • 970231 2021-006
    Significant Deficiency Repeat
  • 970232 2021-004
    Material Weakness Repeat
  • 970233 2021-005
    Material Weakness Repeat
  • 970234 2021-006
    Significant Deficiency Repeat
  • 970235 2021-007
    Material Weakness Repeat
  • 970236 2021-008
    Significant Deficiency Repeat
  • 970237 2021-009
    Significant Deficiency Repeat
  • 970238 2021-010
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $1.24M
14.182 Section 8 New Construction and Substantial Rehabilitation $553,367
14.871 Section 8 Housing Choice Vouchers $312,375
14.850 Public and Indian Housing $279,167
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $178,865
10.405 Farm Labor Housing Loans and Grants $127,040
10.427 Rural Rental Assistance Payments $60,863
14.896 Family Self-Sufficiency Program $36,603