Finding 401277 (2023-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-06-20
Audit: 309310
Organization: Farmville Housing Authority (NC)

AI Summary

  • Core Issue: The Farmville Housing Authority failed to follow internal controls for tenant eligibility, leading to non-compliance with HUD requirements.
  • Impacted Requirements: 24 CFR 880 mandates accurate tenant files and compliance with eligibility criteria.
  • Recommended Follow-Up: Continue monthly reviews of tenant recertifications to ensure compliance and proper documentation.

Finding Text

Farmville Housing Authority Farmville, North Carolina Schedule of Findings and Questioned Costs For the Year Ended September 30, 2023 Section III - Federal Award Findings and Questioned Costs 2023-001 Federal Agency: U. S. Department of HUD Federal program: N/C S/R Section 8 Program ALN#: 14.182 Award Period: Type of Finding: Criteria or specific requirement: Condition: Questioned Cost: Context: Cause: Effect: Identification of a repeat finding: Recommendation: 10/1/22-9/30/23 Significant Deficiency in Internal Control over Compliance 24 CFR 880 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. $0 Testing of 25 tenant files identified an exception in 2 files as follows: • 2 files did not contain an EIV withing 1 year of the annual recertification. The Agency did not obtain all required documentation during the intake procedures. The Authority is not in compliance with requirements regarding eligibility. None I recommend that the Agency continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions: Management agrees with this finding. We have reviewed the intake procedure and will continue to review recertifications.

Corrective Action Plan

Farmville Housing Authority Corrective Action Plan For the Year Ended September 30, 2023 Section II - Financial Statement Findings None Reported Section III - Federal Award Findings and Questioned Costs Finding 2023-001 Name of Contact Person: Wendy Ellis Executive Director Corrective Action: We will implement proper internal control procedures for the N/C S/R Section 8 program eligiblity requirements. Proposed Completion Date: Immediately

Categories

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

Other Findings in this Audit

  • 977719 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $911,261
14.872 Public Housing Capital Fund $644,960
14.182 Section 8 New Construction and Substantial Rehabilitation $623,855