Finding 504178 (2024-003)

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

AI Summary

  • Core Issue: The Public Housing Authority failed to provide complete waiting list documentation for three selected participants, hindering compliance verification.
  • Impacted Requirements: This noncompliance violates 24 CFR 960.206(e)(2), which mandates a clear audit trail for applicant selection as per the PHA plan.
  • Recommended Follow-up: The Agency should strictly follow its Admissions and Continued Occupancy Policy (ACOP) to ensure proper documentation and compliance with housing policies.

Finding Text

Finding 2024-003 - Public Housing Internal Control over Waiting List - Eligibility Noncompliance and Significant Deficiency Low Rent Public Housing - Subsidy ALN 14.850 Condition & Cause: We examined the Public Housing waiting list as part of our tests of the related internal controls. We selected five (5) newly housed participants to review for compliance with the PHA's move in policies and procedures. Although the Authority was able to locate the batches that the participants were selected from the Authority was unable to provide the complete waiting list for three (3) of the selected participants. Since we did not have the waiting list to agree to the batches there was not a clear audit trail to follow to provide assertion to the compliance with housing and selection policies. Criteria: The Code of Federal Regulations and the Housing Authority's Admissions and Continued Occupancy Policy (ACOP). 24 CFR 960.206(e)(2) states that there must be a clear audit trail to verify that each applicant has been selected in accordance with the method specified in the PHA plan. Effect: Failure to maintain compliance can result in loss of funding for grants and other programs which require operations to have no audit findings and noncompliance. Recommendation: We recommend that the Agency closely adhere to the ACOP and Code of Federal Regulations regarding management of the waitlist. The Authority should be able to support each selection and move in from the waiting list with evidence that it followed its board approved housing policies. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes

Corrective Action Plan

Finding 2024-003 - Public Housing Internal Control over Waiting list- Eligibility Noncompliance and Significant Deficiency low Rent Public Housing- Subsidy ALN 14.850 Corrective Action Plan: As previously mentioned above, the Housing Authority recently transitioned its property management functions from TenMast to Yardi Voyager. During this conversion, we encountered data compatibility issues, including anomalies with waiting list data not included in each applicant's household. Additionally, at the time of the review, we were purging the previous waiting list data that had been converted to Voyager, resulting in the loss or purging of some of the waiting list data. To address this conversion issue, staff has been instructed to include a note in the resident's file for instances where applicant information and data are missing or may have been lost due to the conversion. We have also recently opened our waiting list using our newly onboarded resident portal. Applicants can now easily apply for available public housing units and track their status using Rent Cafe. With the ability to track applicants in our newly implemented Voyager and Rent Cafe systems, we do not foresee this issue recurring, especially since Yardi provides an audit trail for all applications entered using the software. Below are some key features for Rent Cafe as part of our application and waiting list process: 1. Online Applications: Prospective tenants can easily apply for available housing units online, streamlining the application process. 2. Resident Portal: Current residents can access a portal to pay rent, submit maintenance requests, and communicate with property management. 3. Real·Time Availability: Users can view real-time availability of units. 4. Tracking and Reporting: Property managers can generate reports and track various aspects of property management, including lease expirations and maintenance requests. 5. Audit Trails: The system provides an audit trail for all applications and transactions, ensuring transparency and accountability. Person Responsible: Phillip Taylor Anticipated Completion Date: The corrective action involves implementing an improved process, which is currently ongoing, completed no later than March 31, 2025.

Categories

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

Other Findings in this Audit

  • 504177 2024-002
    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