FAC Explorer

Finding 395062 (2021-006)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2021
Accepted
2024-04-30
Audit: 304992
Organization: Housing Authority of Cass County (ND)
Auditor: Brady Martz & Associates PC

AI Summary

  • Core Issue: The Authority did not reexamine one tenant's income within the required 12-month period and lacked third-party verification.
  • Impacted Requirements: Compliance with HUD regulations for income reexamination and documentation (24 CFR section 982.516).
  • Recommended Follow-Up: Implement a second-party review process to ensure all eligibility procedures and documentation are completed properly.

Finding Text

Federal Program U.S. Department of Housing and Urban Development AL #14.871 – Significant Deficiency Criteria The Authority must reexamine family income at least once every 12 months and obtain and document third party verification (24 CFR section 982.516). Condition We tested compliance with the Authority’s eligibility in 40 tenant files and found that one tenant did not have a reexamination of all income done within the 12 months and no third party verification was performed on that income. We also noted one tenant did not have a signed lease agreement within the file. Questioned Costs None Context We reviewed a sample of 40 of the Authority’s 436 tenant files for eligibility requirements. Effect HAP payments could have been paid to a tenant who was not eligible to receive the payments. Cause The Authority failed to reexamine family income every 12 months and obtain third party verification for all income. Repeat Finding Not a repeat finding. Recommendation We recommend there be a second party review of the file to ensure all necessary procedures have been performed and appropriate documents are included. Views of Responsible Officials Management recognizes the deficiency and plans to implement the auditor’s recommendation.

Corrective Action Plan

Contact Person Derek Johnson, Executive Director Corrective Action Plan The Authority will review its policies and procedures over program compliance requirements and continue to provide occupancy training to staff to prevent future exceptions. Planned Completion Date for CAP December 31, 2022.

Categories

Eligibility Significant Deficiency

Other Findings in this Audit

  • 395061 2021-005
    Material Weakness
  • 395063 2021-007
    Significant Deficiency
  • 395064 2021-008
    Significant Deficiency
  • 395065 2021-009
    Significant Deficiency
  • 395066 2021-005
    Material Weakness
  • 395067 2021-006
    Significant Deficiency
  • 395068 2021-007
    Significant Deficiency
  • 395069 2021-008
    Significant Deficiency
  • 395070 2021-009
    Significant Deficiency
  • 395071 2021-005
    Material Weakness
  • 395072 2021-006
    Significant Deficiency
  • 395073 2021-007
    Significant Deficiency
  • 395074 2021-008
    Significant Deficiency
  • 395075 2021-009
    Significant Deficiency
  • 971503 2021-005
    Material Weakness
  • 971504 2021-006
    Significant Deficiency
  • 971505 2021-007
    Significant Deficiency
  • 971506 2021-008
    Significant Deficiency
  • 971507 2021-009
    Significant Deficiency
  • 971508 2021-005
    Material Weakness
  • 971509 2021-006
    Significant Deficiency
  • 971510 2021-007
    Significant Deficiency
  • 971511 2021-008
    Significant Deficiency
  • 971512 2021-009
    Significant Deficiency
  • 971513 2021-005
    Material Weakness
  • 971514 2021-006
    Significant Deficiency
  • 971515 2021-007
    Significant Deficiency
  • 971516 2021-008
    Significant Deficiency
  • 971517 2021-009
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $230,447
14.879 Mainstream Vouchers $152,297
14.871 Section 8 Housing Choice Vouchers $64,219
14.850 Public and Indian Housing $62,632