Finding 47049 (2022-001)

Significant Deficiency Repeat Finding
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-08-02

AI Summary

  • Core Issue: 22% of tenant files reviewed had income-related errors, indicating a significant compliance deficiency.
  • Impacted Requirements: Errors violate federal regulations and HUD guidelines for maintaining accurate tenant documentation.
  • Recommended Follow-Up: Conduct a comprehensive audit of tenant files and enhance monitoring and training for occupancy specialists.

Finding Text

Finding 2022-001 ? Public Housing Tenant Files ? Eligibility ? Internal Control over Tenant Files ? Noncompliance and Significant Deficiency Low Income Public Housing ? Subsidy ? ALN #14.850 Condition & Cause: Our review of fifty (50) Public Housing tenant files revealed that there was a total of eleven (11) income-related errors, which represent 22% of the total files examined. We were able to numerically extrapolate ten (10) of these errors to the Public Housing population. These consisted mainly of improper deductions, omissions of income on the 50058, and improper annualization of income. The remaining one (1) file error was a result of lack of verification of income. Based on our extrapolation, we feel that the Housing Authority has a significant deficiency in this area of compliance. Criteria: The Code of Federal regulations, the Housing Authority?s ACOP, and specific HUD guidelines in documenting and maintaining the Public Housing tenant files. Effect: The failure to properly calculate the dwelling rental income charged to a resident can result in a misstatement of operating income and corresponding operating subsidy earned by the Housing Authority. Recommendation: We recommend that the Agency conduct a thorough tenant file audit of existing tenants in the Public Housing program to determine whether there are any misstatements of rental income. We also recommend that the Agency increase their monitoring and review of the Public Housing program files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. Questioned Costs: None Repeat Finding: Yes Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.

Corrective Action Plan

FINDING 2022-001 ?Public Housing Tenant Files ? Eligibility ? Internal Control Over Tenant Files Non-Compliance and Significant Deficiency? SHA RESPONSE The Springfield Housing Authority acknowledges the eleven (11) errors as delineated in the full 2022 FYE audit report. In 2022, the Springfield Housing Authority Public Housing program employed three (3) Asset Managers, three (3) Occupancy Specialists and one (1) Program Integrity Specialist. Due to post COVID-19 turnover and unqualified workers in the local workforce, the SHA has experienced a higher than usual turnover rate in the positions that conduct rent calculations. The primary function of the Program Integrity Specialist position is to audit and quality control tenant files and rent calculations conducted by Occupancy Specialists. The Asset Managers are responsible for reviewing 3% of recertifications audited by the Program Integrity Specialist position as an additional quality control measure. Further, during the auditor?s closeout meeting with the SHA Management team, the auditors stated that they observed that the SHA team conducted necessary file audits and identified deficiencies, however they did not observe corrections to the identified deficiencies upon staff notification. This error rate was directly attributable to the high turnover rate of Occupancy Specialists during the 2022 fiscal year. The SHA will take the following corrective actions to correct the errors and/or prevent the errors moving forward: ? The Program Integrity Specialist will conduct reviews of 100% of annual and interim recertifications for public housing tenants by December 31, 2023. ? The Program Integrity Specialist will ensure 100% audited file corrections are completed by the Occupancy Specialists, monthly. ? The Asset Manager(s) will review 10% of the recertifications audited by the Program Integrity Specialist as an additional quality control measure by December 31, 2023. ? The Asset Managers, Occupancy Specialists and Program Integrity Specialist will be provided with additional internal and external training opportunities in low rent public housing rent calculations and program integrity by December 31, 2023. ? The Asset Managers will re-review the files identified with errors during the independent audit and resolve the errors in accordance with the SHA Admissions and Continued Occupancy Plan and HUD rules and regulations by September 30, 2023. PERSON RESPONSIBLE Melissa Huffstedtler ANTICIPATED COMPLETION DATE December 31, 2023

Categories

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

Other Findings in this Audit

  • 47050 2022-002
    Significant Deficiency
  • 623491 2022-001
    Significant Deficiency Repeat
  • 623492 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $14.13M
14.850 Public and Indian Housing $3.58M
14.872 Public Housing Capital Fund $1.95M
14.879 Mainstream Vouchers $957,732
14.896 Family Self-Sufficiency Program $224,018
14.871 Ehv - Section 8 Housing Choice Vouchers $122,796
14.870 Resident Opportunity and Supportive Services - Service Coordinators $62,387