Finding Text
Section 8 Housing Choice Voucher Program-CDFA#14.871, Low Rent Program-CDFA#14.850
2023-002-Inadequate Administration of Facets of Programs-Allowable Costs/Principles
Criteria and specific requirement
(a)-Both the Low Rent and Housing Choice Voucher Plans participate in the Family Self-Sufficiency (FSS) programs. Various tenants participate in the program. Various HUD-approved goals for personal improvement are established. Authority personnel help the participants set the objectives and time frames for accomplishing the goals. Authority personnel counsel the participants and track their progress. If the goals are timely met, the escrowed funds are disbursed to the participant. If the goals are not timely met, the escrowed amount is forfeited by the authority.
(b)-Funds are earned by participants who meet goals established similarly to the FSS program noted above in the Family Self Sufficiency Program. This program was established years ago from excess Admin fees of the HCV program, at a time when this was still permitted. The funds are referred to as Homeownership Set Aside funds.
(c)-As noted in Note 11, Retirement System, the authority participates in a Simplified Pension Plan (SEP). $17,722 was contributed to the Plan during the audit year. We requested a copy of the Master Plan, but we have not received it. Also, we requested a breakdown of how the $17,722 was calculated, and to which participant(s) this money had been credited to. We have not received that.
Condition Found
(a) and (b)-It appears the enrollment, progress of participants to meet the established goals, and potential earning and disbursement of FSS and Set Aside funds have been inadequately monitored for at least the last two years.(c)-Without both of these requested items noted above, we are unable to determine if the SEP contribution terms were adequately complied with.
Cause
It appears that the authority has not retained adequate personnel to oversee the FSS and Set Aside tracking. We do not know why we have not received the SEP information.
Effect
The federal regulations for FSS and Set Aside tracking has not been complied with. In addition, it is possible the terms of ERISA (Employers Retirement Income Security Act) may have not been complied with, in some respects.
Recommendation to prevent future occurrences
Personnel should be trained in the FSS and Homeownership programs. They should adequately track and administer the program. The SEP provisions should be complied with in all material respects.
View of Responsible Officials
We will comply with the auditor’s recommendation. I do note that we were short of personnel for the entire audit period. I believe that I have staff presently that can do most of the assigned duties. I admit that not all of the deficiencies noted were due to being understaffed, but lack of training (being new to HUD) and understanding. But we will also correct those errors to the best of our ability.