Finding 394650 (2020-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2020
Accepted
2024-04-25

AI Summary

  • Core Issue: Some tenant files were not recertified annually, violating HUD requirements.
  • Impacted Requirements: Annual income reexaminations must be completed within 12 months to ensure accurate rent and subsidy calculations.
  • Recommended Follow-Up: Fayetteville Housing Authority should review and recertify all tenant files annually and establish a schedule for compliance.

Finding Text

2020-001 Tenant Files - Annual Certifications Were Not Done Criteria: Under the terms of the Public Housing Occupancy Guide ~ Complete the reexamination within a year (12 months) of the previous annual reexamination or new admission for families paying income-based rent. Any Housing Authority not in compliance with annual income reexamination requirements at the time of the submission of the calculation of operating subsidy shall furnish to the responsible HUD field office a copy of the procedures it is using to achieve compliance and a statement of the number of families that have undergone reexamination during the 12 months preceding the current funding cycle. If, on the basis of this submission or any other information, HUD determines that the Housing Authority is not substantially in compliance with all of the annual income reexamination requirements, HUD shall withhold payments to which the Housing Authority may be entitled under this part. Payment may be withheld in an amount equal to HUD's estimate of the loss of rental income to the Housing Authority resulting from its failure to comply with the requirements. Condition: We noted some tenant files were not recertified, after the tenant moved into the Housing Authority property. Questioned Costs: Cannot be determined, due to incomplete information. Effect: Tenant rent and subsidy calculations are incorrect and not up to date. Cause: Lack of oversight by Fayetteville Housing Authority Management. Recommendation: The Fayetteville Housing Authority needs review all tenant files and recertify all tenant files annually. We recommend the Fayetteville Housing Authority implement a schedule to ensure that tenant recertifications are completed annually.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions: Reexaminations have been completed for tenants who were not recertified during FY 2020. Current staff have received additional training on the recertification process and documentation. During recertification, if Upper-management will review a minimum of 20% of all tenants recertification and recertifications, selected randomly by the management designee from tenant files due for recertification within the current month to ensure all required documents are present and correct. Interim recertifications were completed for residents that had a decrease in income during this time period. Additionally, residents who were recertified at a later date or will be certified at a later date and found to have been over charged for rent, will be credited for the amount of overpayment retro to the start of the overpayment or the due date of the recertification. Responsible Parties: Audra Butler, Interim Deputy Director and Tara West, Property Manager. Timeline: Recertifications: Completed Compliance Review beginning January 2022.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 394651 2020-002
    Material Weakness
  • 394652 2020-003
    Material Weakness
  • 394653 2020-004
    Material Weakness
  • 394654 2020-005
    Material Weakness
  • 394655 2020-006
    Material Weakness
  • 394656 2020-007
    Material Weakness
  • 394657 2020-008
    Material Weakness
  • 394658 2020-009
    Material Weakness
  • 394659 2020-010
    Material Weakness
  • 394660 2020-011
    Material Weakness
  • 394661 2020-012
    Material Weakness
  • 394662 2020-013
    Material Weakness
  • 394663 2020-014
    Material Weakness
  • 394664 2020-015
    Material Weakness
  • 394665 2020-016
    Material Weakness
  • 394666 2020-017
    Material Weakness
  • 394667 2020-018
    Material Weakness
  • 971092 2020-001
    Material Weakness
  • 971093 2020-002
    Material Weakness
  • 971094 2020-003
    Material Weakness
  • 971095 2020-004
    Material Weakness
  • 971096 2020-005
    Material Weakness
  • 971097 2020-006
    Material Weakness
  • 971098 2020-007
    Material Weakness
  • 971099 2020-008
    Material Weakness
  • 971100 2020-009
    Material Weakness
  • 971101 2020-010
    Material Weakness
  • 971102 2020-011
    Material Weakness
  • 971103 2020-012
    Material Weakness
  • 971104 2020-013
    Material Weakness
  • 971105 2020-014
    Material Weakness
  • 971106 2020-015
    Material Weakness
  • 971107 2020-016
    Material Weakness
  • 971108 2020-017
    Material Weakness
  • 971109 2020-018
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $2.89M
14.850 Public and Indian Housing $81,392
14.871 Section 8 Housing Choice Vouchers $20,347