FAC Explorer

Finding 423 (2023-001)

Significant Deficiency Repeat Finding
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2023-10-20
Audit: 891
Organization: Housing Authority for the City of Freeport (IL)
Auditor: Hawkins Ash Cpa's LLP

AI Summary

  • Core Issue: Tenant files are not compliant with HUD regulations, leading to potential inaccuracies in rent calculations.
  • Impacted Requirements: Missing signed forms and income calculation errors violate grant agreements and HUD standards.
  • Recommended Follow-Up: Ensure tenant files are properly maintained to meet HUD regulations and rectify identified deficiencies.

Finding Text

Item 2023-001 - Tenant Files Program: Public and Indian Housing Requirement: Proper tenant file maintenance is required by grant agreements and HUD regulations. Condition: Tenant files were not in compliance with HUD regulations. We examined 17 tenant files for Public and Indian Housing and found the following deficiencies: 2 files were missing a signed 9886 form 2 files had income calculation errors 2 files did not have support for income reported on 50058 Questioned Costs: Not determinable. Cause: The Housing Authority is not maintaining proper tenant files. Effect: Rent calculations may not be correct and supporting documentation is missing. Prior Year Finding: 2022-001 Information: Sampling was applicable to this finding and systematic problem. Recommendation: We recommend tenant files be maintained in accordance with HUD regulations.

Corrective Action Plan

Recently, HACF has hired a new Assistant Property Manager who will receive Public Housing Occupancy, Eligibility, Income and Rent Calculation (PHOEIR) training from NAHRO. This training will provide knowledge and accurate rent calculation guidance to the HACF’s staff. Additionally, HACF will conduct and review up to 20 files bi-annually and will document file errors and needed corrections. All audit files will be signed off by the Property Operations Manager and the staff. Property management staff will receive ongoing training on reviewing income, assets, and rent calculations, tenant record keeping and recertification requirements.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 424 2023-002
    Significant Deficiency
  • 576865 2023-001
    Significant Deficiency Repeat
  • 576866 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $986,088
14.872 Public Housing Capital Fund $756,831
14.870 Resident Opportunity and Supportive Services - Service Coordinators $42,665