Finding 505456 (2023-002)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-11-13

AI Summary

  • Core Issue: The Authority lacks proper internal controls over tenant files, leading to errors in rent calculations and missing income documentation.
  • Impacted Requirements: Compliance with HUD's Housing Choice Voucher Cluster documentation and verification standards is not being met.
  • Recommended Follow-Up: Develop a process to ensure accurate rent calculations and maintain all required income verifications in tenant files.

Finding Text

2023 – 002 Tenant File Errors Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 & 14.879 Federal Award Identification Number and Year: W193 - 2023 Award Period: January 1, 2023 – December 31, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The Housing Choice Voucher Cluster requires the Authority to obtain and keep documentation of how the Authority determines tenants who are eligible, rent is properly calculated, and required income verifications are obtained. Condition: During our testing we noted that the Authority did not have internal controls over tenant files. One file had an error in rent calculation and one tenant file did not have supporting documentation for income. Questioned costs: None Context: During our testing we noted that the Authority did not have internal controls over tenant files. One file had error in rent calculation and one tenant file did not have supporting documentation for income. Cause: Management was not able to make sure these were completed as required. Effect: Noncompliance with HUD requirements. Repeat Finding: No Recommendation: We recommend, the entity develop a process to ensure that rent calculations are correctly performed and documented and all required income verifications are maintained in tenant files. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

2023-003 Tenant File Errors Corrective Action Plan (CAP): Recommendation: We recommend, the Authority develop a process to verify that rent calculations are correctly performed and all required income verifications are maintained in tenant files. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Authority will train the individuals doing the calculations to ensure calculations are correctly performed and all required income verifications are maintained in tenant files. Name of the contact person responsible for corrective action: Georgia Crownhart Planned completion date for corrective action plan: December 31, 2024

Categories

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 505454 2023-001
    Significant Deficiency
  • 505455 2023-001
    Significant Deficiency
  • 505457 2023-002
    Significant Deficiency
  • 1081896 2023-001
    Significant Deficiency
  • 1081897 2023-001
    Significant Deficiency
  • 1081898 2023-002
    Significant Deficiency
  • 1081899 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.58M
14.879 Mainstream Vouchers $487,077
14.850 Public and Indian Housing $97,638
14.896 Family Self-Sufficiency Program $28,489
14.872 Public Housing Capital Fund $4,116