Finding 404754 (2023-001)

Material Weakness Repeat Finding
Requirement
EN
Questioned Costs
-
Year
2023
Accepted
2024-06-30

AI Summary

  • Core Issue: The Authority has a material weakness in controls for tenant recertification, leading to missing documentation in 30% of selected files.
  • Impacted Requirements: Non-compliance with 24CFR sections 5.230, 5.609, and 960.259 jeopardizes eligibility and accurate rent calculations.
  • Recommended Follow-Up: Implement new controls and procedures, including a dedicated Quality Control Specialist to review all tenant files annually.

Finding Text

Low Rent Public Housing (CFDA#14.850) Type of Deficiency: Material Weakness Compliance Requirement: Eligibility and Special Tests We selected forty files for the Low Rent Public Housing Program. 12 of the files were missing required documentation from EIV, 9866 forms, birth certificates and one the entire recertification for the year sampled was missing Cause: The Authority did not implement the proper controls to ensure that all tenants are properly recertified each year. Condition: The Authority did not follow the compliance requirements of 24CFR sections 5.230, 5.609 and 960.259. This was condition was noted as a finding the prior year audit report. Effect of Condition: The effect of not complying with the requirements in the Compliance Supplement may result in ineligible individuals being admitted to the program and improper rent calculations. Recommendation: We recommend that the Authority adopt controls and procedures to ensure compliance with the requirements of the Low Rent Public Housing Program. Questioned Costs -$0- Response: The following steps have been and are being taken regarding tenant certifications: 1. Staff has attended HOTMA training: An In-Depth Review of Programmatic Changes on 5/21/24 2. A new position was created at the Authority. Our most senior Manager is now our dedicated Quality Control Specialist and will be responsible for reviewing 100% of our files yearly.

Corrective Action Plan

The following steps have been and are being taken regarding tenant certifications: 1. Staff has attended HOTMA training: An In-Depth Review of Programmatic Changes on 5/21/24 2. A new position was created at the Authority. Our most senior Manager is now our dedicated Quality Control Specialist and will be responsible for reviewing 100% of our files yearly.

Categories

Eligibility HUD Housing Programs Material Weakness

Other Findings in this Audit

  • 404755 2023-002
    Material Weakness Repeat
  • 981196 2023-001
    Material Weakness Repeat
  • 981197 2023-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $7.90M
14.872 Public Housing Capital Fund $4.94M
14.871 Section 8 Housing Choice Vouchers $4.83M
14.269 Hurricane Sandy Community Development Block Grant Disaster Recovery Grants (cdbg-Dr) $3.07M
14.218 Community Development Block Grants/entitlement Grants $555,925