Finding 497621 (2023-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-09-23
Audit: 320414
Organization: Bladenboro Housing Authority (NC)

AI Summary

  • Core Issue: The Bladenboro Housing Authority failed to follow internal controls for tenant eligibility, leading to significant deficiencies in compliance.
  • Impacted Requirements: Non-compliance with 24 CFR 982-516, which mandates accurate tenant files and proper documentation.
  • Recommended Follow-Up: Monthly reviews of tenant recertifications are essential to ensure ongoing compliance with eligibility and reporting standards.

Finding Text

Bladenboro Housing Authority Bladenboro, North Carolina Schedule of Findings and Questioned Costs For the Year Ended December 31, 2023 Section III – Federal Award Findings and Questioned Costs 2023-001 Federal Agency: U. S. Department of Housing and Urban Development Federal program: Housing Choice Vouchers CFDA #: 14.871 Award Period: 01/01/23-12/31/23 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: None Context: Testing of 25 tenant files identified an exception in 4 files as follows: • 1 file contained a Release of Information that was not signed by all adult members of the household. • 1 lease did not contain the signature page. • 1 file did not have evidence of income verification. • 1 file did not contain proper documentation of the Section 214 Declaration of Citizenship form. Cause: The Agency did not obtain the required rent reasonableness comparison upon intake. The Agency also did not obtain all required signatures on certain forms. Effect: The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: None Recommendation: 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. 3

Corrective Action Plan

Corrective Action Plan For the year ended December 31, 2023 Section II - Financial Statement Findings None Reported Section III - Federal Award Findings and Questioned Costs Finding 2023-001 Name of Contact Person: Becky Tatum Interim Director Corrective Action: Mangagement will implement proper internal control procedures for the Housing Choice Voucher Program eligibility requirements. Proposed Completion Date: Immediately

Categories

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

Other Findings in this Audit

  • 1074063 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $342,900
14.850 Public and Indian Housing $290,085
14.871 Section 8 Housing Choice Vouchers $15,855