Finding 513210 (2024-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-12-05

AI Summary

  • Core Issue: The Authority lacks a written procedure for managing the wait list, leading to potential non-compliance in tenant admissions.
  • Impacted Requirements: The Authority must follow 24 CFR sections 960.206 and 960.208, which require documented policies for selecting applicants from the wait list.
  • Recommended Follow-Up: Review and update tenant certification and admission policies, train staff on these procedures, and conduct regular audits of tenant files for compliance.

Finding Text

Current years findings: 2024 – 001: Application of Wait List Federal Program CFDA # 14.850 Operating Subsidy Type of Finding: Material Weakness in Internal Control over Compliance Condition: Management of a financial reporting entity is required to establish and maintain internal controls over compliance to ensure that they are compliant with all requirements of Federal programs. The Authority does not have a written procedure for administration of the wait list, and is not documenting admission sufficiently to determine if tenants are being admitted based on their position on the wait list. Criteria or specific requirement: The PHA must have written policies for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list under 24 CFR section 960.206 and 960.208. Effect: By not adhering to a formal documented process, it is likely that tenants may not have been admitted into the program in a timely and orderly fashion Cause: The Organization has not documented and adhered to a formal admission process. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended the Authority review all of the policies in place relating to the certification of tenants and the admittance of new tenants. It is also recommended that employees are trained on these policies and that periodic reviews are performed on tenant files to ensure compliance with policies. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.

Corrective Action Plan

2024-001 Application of Wait List Recommendation: Recommendation: It is recommended the Authority review all of the policies in place relating to the certification of tenants and the admittance of new tenants. It is also recommended that employees are trained on these policies and that periodic reviews are performed on tenant files to ensure compliance with policies. . Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action in response to finding: The Organization will review the admission process to determine if additional controls can be implemented in the process and will document the policy in place. Name of the contact person responsible for corrective action: Brian Lujan, Executive Director Planned completion date for corrective action plan: January 2025

Categories

HUD Housing Programs Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1089652 2024-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $648,129
14.872 Public Housing Capital Fund $238,819