Finding 50265 (2022-002)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2022-12-05

AI Summary

  • Core Issue: Three Section 8 participant files lacked a lease, and one landlord form was signed late, violating HAP Contract requirements.
  • Impacted Requirements: This noncompliance breaches 24 CFR 982.451, which mandates proper lease documentation.
  • Recommended Follow-Up: The Housing Authority should enhance internal controls to ensure all Section 8 files meet HAP contract standards.

Finding Text

Criteria- The Part C of HAP Contract Tenancy Addendum 2) Lease states; The owner has given the PHA a copy of the Lease including any revisions agreed by the owner and tenant. Condition- The review of a sample of Section 8 participant files revealed noncompliance with HAP Contract, Part C of HAP Contract Tenancy Addendum. There was no lease on file for 3 of the Section 8 participants. Additionally, one of the participant's landlord forms was not signed until 3 months after the tenant move in date. Context- Condition was identified as part of the compliance testing for the major program. Effect- Noncompliance with 24 CFR 982.451 Housing Assistance Payments Contract. Cause- Internal Control failure in the file approval and preparation process. Recommendation- The Housing Authority should review the internal control policies in place to ensure all Section 8 participants are in compliance with the HAP contract. Repeat Finding from Prior Year(s)- No View of Responsible Officials- See management?s corrective action plan.

Corrective Action Plan

Corrective Action: 1. Payment shall be placed on hold whenever tenant landlord lease has not been submitted with signature(s) prior to start date or renewal date. 2. Hap checks when put on hold must be taken off hold by a different staff member with proper review and authorization. 3. Move-ins and annual renewals must be processed and reviewed by at least two authorized staff members. Proposed Completion Date: December 1, 2022 Name of Contact person: Human Resources- Dr. Martin Castillo Jr.

Categories

HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 626707 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $5.18M
14.872 Public Housing Capital Fund $373,986
14.850 Public and Indian Housing $190,220