Finding 499799 (2023-002)

Significant Deficiency
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2024-09-30

AI Summary

  • Core Issue: Annual recertifications for income eligibility were not completed on time, leading to potential overpayments.
  • Impacted Requirements: PHAs must determine income eligibility and calculate rent and housing assistance payments annually.
  • Recommended Follow-Up: Reassess staff workload and improve document tracking to ensure timely completion of eligibility tasks.

Finding Text

2023-002 – Eligibility – Moving to Work Demonstration Program - 14.881 Significant Deficiency and Reportable Noncompliance Statement of Condition and Criteria Annual recertifications were not completed in a timely manner. PHA’s are required to determine income eligibility, calculate participant rent and housing assistance payments on an annual basis. Cause Staff turnover along with ineffective tracking and finalization of eligibility determinations. Effect or Potential Effect Overpayment of Housing Assistance Payments due to late processing of annual recertifications. Question Costs Known questioned costs totaled $2,390. Context A sample of 45 files were selected to audit program eligibility from a population of 2,796. The test found 26 files noted late annual recertifications. Of which, seven files required additional housing assistance to be disbursed due to sufficient participant notice requirements. Our sample was not a statistically valid sample. Recommendation We recommend the Authority reassess staff workload and review document workflow to ensure tasks are carried out through completion. Management’s Response Management agrees with the finding and corrective action is in progress as detailed in the Corrective Action Plan.

Corrective Action Plan

Corrective Action The program issues are systemic; therefore the corrective actions are identical. The MTW flexibility permits tri-annual recertification. The agency has been conducting tri-annual recertification for elderly and disabled households. Effective with February 2025 recerts, now in process, tri-annuals will be applied to all households. This significantly reduces the number of recertifications performed by each staff and permits significantly more attention to monitoring, oversight, training and correction. TGHA has hired temporary staff for an extended period to focus on file organization and to correct documentation deficiencies. All HCV staff have completed Rent Calculation courses provided by NAHRO or Nan McKay during the fiscal year. There have been two managers hired for the department, one exclusively for project-based vouchers. Both attended NAHRO supervisory training in September. There will be an intensive focus on program integrity throughout the year. TGHA has contracted with a professional recruiter to assist in hiring a Director of the HCV and MTW programs. Recertification transactions will be monitored on a monthly basis. This will include validation of calculations and verification of correct documentation. It is anticipated that TGHA files will be fully in order by July 2025.

Categories

Questioned Costs HUD Housing Programs Eligibility Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 499798 2023-001
    Material Weakness
  • 1076240 2023-001
    Material Weakness
  • 1076241 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.881 Moving to Work Demonstration Program $26.98M
14.871 Section 8 Housing Choice Vouchers $1.71M
14.896 Family Self-Sufficiency Program $211,176
14.879 Mainstream Vouchers $189,688