Finding 504177 (2024-002)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2024-10-30

AI Summary

  • Core Issue: Four out of thirty-five tenant files showed noncompliance with eligibility and rent calculations.
  • Impacted Requirements: Annual inspections, proper documentation retention, and timely EIV reviews were not met as per federal regulations and the Authority's policies.
  • Recommended Follow-Up: Improve procedures for inspections and documentation, and conduct regular audits and staff training to ensure compliance.

Finding Text

Finding 2024-002 - Low Rent Public Housing Tenant Flies - Eligibility- Rent Calculations Noncompliance & Significant Deficiency low Rent Public Housing - ALN 14.850 Condition & Cause: Our review of thirty-five (35) low Rent Public Housing tenant files identified noncompliance in four (4) files, or 11.4% of our sample. Of these, two (2) files did not receive their annual unit inspection, one (1) file lacked the necessary 50058 and supporting documentation to verify the rental charge, and one (1) file was missing the Enterprise Income Verification (EIVJ for the action we reviewed, as well as the required quarterly EIV review for tenants who report zero income as stipulated by the Authority's Admissions and Continued Occupancy Policy (ACOP). Criteria: The Code of Federal Regulations and the Authority's ACOP mandate annual unit inspections, retention of reexaminations and verifications in tenant files, and comprehensive use of the EIV system. Effect: Failure to perform required annual inspections, maintain accurate documentation, and conduct timely EIV reviews can lead to inaccurate tenant records, potential overpayments or underpayments, and noncompliance with HUD requirements. This compromises the integrity of tenant file management and program compliance. Recommendation: We recommend that the Authority enhance its procedures to ensure compliance with annual inspection requirements, maintain proper documentation for reexaminations, and implement a robust process for EIV reviews that adhere to the Authority's ACOP. Regular audits and staff training should be conducted to address these compliance issues effectively. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes

Corrective Action Plan

Finding 2024-002 - Low Rent Public Housing Tenant Files – Eligibility - Rent Calculations Noncompliance & Significant Deficiency Low Rent Public Housing - ALN 14.850 Corrective Action Plan: Our property management staff will ensure that inspections for occupied units are conducted and documented annually. Inspections will also be conducted and documented when a potential deficiency is reported. This requirement has been communicated to the property management staff via email, emphasizing the mandate for annual inspections. Additionally, the inspection results notification letter for residents has been updated to comply with the requirement to notify them of deficiencies found in the unit within a reasonable time frame. The property management team has also been instructed to collaborate with their designated maintenance team members to ensure that any deficiencies identified during inspections are addressed within the required time based on the severity of the deficiency. To ensure units remain clean and well-maintained, preventing failed inspections, the Housing Authority of Savannah will promptly address resident-caused issues beyond normal wear and tear. Moving forward, all annual inspections will be conducted and documented as required. Regarding the missing 50058, the Housing Authority of Savannah attributes this error to the conversion of our property management system from TenMast to Yardi Voyager beginning in July 2023. During the conversion, some data fields and elements did not convert correctly, causing anomalies in some household data. Yardi Voyager now provides the capability to conduct internal audits on completed or incomplete 50058s and to generate reports for residents missing 50058s in the system. These reports are now generated monthly to ensure property managers are aware of residents' 50058 completion status in Voyager. Future issues with missing 50058s are not anticipated due to the system upgrades. The EIV report issue occurred because a new hire did not have access to the EIV system. To address this, we have updated our EIV policies for public housing staff. As well, property management staff have been instructed to contact our in-house EIV Coordinator for assistance if they are unable to log into the system or if their account password is locked. Additionally, since all property staff has access to the EIV system, we have advised that if their personal login information is not established, another staff member will use their account to generate the necessary EIV report. This will ensure that resident EIV reports are accessible when needed. Person Responsible: Phillip Taylor Anticipated Completion Date: These corrective measures have been implemented and will continue on an ongoing basis. We are also in the process of creating procedures related to conducting unit inspections and clarifying processes for initial, annual, and interim reexaminations. Most of these enhancements will involve utilizing our newly upgraded property management software, Yardi Voyager and Rent Cafe, which will provide us with improvements in monitoring and auditing staff work products. The anticipated completion for the ACOP revision and systems policies and procedures is March 31, 2025, or sooner.

Categories

HUD Housing Programs Eligibility Significant Deficiency

Other Findings in this Audit

  • 504178 2024-003
    Significant Deficiency
  • 504179 2024-001
    Significant Deficiency
  • 504180 2024-001
    Significant Deficiency
  • 1080619 2024-002
    Significant Deficiency
  • 1080620 2024-003
    Significant Deficiency
  • 1080621 2024-001
    Significant Deficiency
  • 1080622 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $6.02M
14.850 Public and Indian Housing $3.93M
14.267 Continuum of Care Program $1.34M
14.871 Section 8 Housing Choice Vouchers $616,920
14.896 Family Self-Sufficiency Program $303,580
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $89,329