Finding 516517 (2024-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2024-12-21

AI Summary

  • Core Issue: The Authority has significant deficiencies in tenant file management, including late recertifications and missing documentation.
  • Impacted Requirements: Noncompliance with HUD regulations and internal controls as outlined in the Authority’s ACOP and 24 CFR 960.259.
  • Recommended Follow-Up: Enhance staff training on procedures, address the identified deficiencies, and assess the impact on all tenant files.

Finding Text

Eligibility Public and Indian Housing Program - AL No. 14.850 Material Weakness in Internal Control Material Noncompliance Condition: Out of an approximate population of 621 tenants, a total of 44 tenant files were selected for testing and the following deficiencies were noted:  Eleven files had an annual recertification completed over 12 months after the previous recertification,  Twenty files were missing inspections,  One file was missing a photo identification for one adult tenant,  Three files were missing the flat rent option sheet,  Two files did not have 9886 release of information from within 15 months of the annual recertification, and  Two files were missing all supporting documents. Criteria: The Authority’s ACOP and 24 CFR 960.259 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding complete and accurate tenant files. Context: The auditor haphazardly selected 44 tenant files out of the population, which is considered to be a statistically valid sample. The auditor reviewed the tenant files and support to ensure that proper procedure are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority continued to experience staffing turnover and did not have the available staff to fully implement the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to complete the tenant files. Effect: The Authority is not in full compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: None. Auditor Recommendations: The Authority should continue to train staff on the established procedures and controls in place to ensure full compliance in regard to eligibility. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. Management Response: See Corrective Action Plan.

Corrective Action Plan

Eligibility Section 8 Housing Choice Vouchers Program - AL No. 14.871 Material Weakness in Internal Control Material Noncompliance Condition: Out of an approximate population of 2,256 tenants, a total of 39 tenant files were selected for testing and the following deficiencies were noted:  Five files had an annual recertification completed over 12 months after the previous recertification,  Six files did not have a valid 9886 release of information from within 15 months of the annual recertification,  Eight files had the incorrect payment standard used,  One file contained an income calculation error,  One file had missing income support,  One file was missing photo identification for one adult tenant,  One file had 214 forms missing for 3 tenants, and  One file had a missing rent reasonableness form. Auditor Recommendations: The Authority should continue to train staff on the established procedures and controls in place to ensure full compliance in regard to eligibility. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. Action Taken: HCV Department will implement the recommendations as presented. The department does recognize that this is a repeat finding and leadership adjustments have been made, appointing a new program director. Transition to paperless function resulted in an adjustment to regular quality checks. A few of the functions to enhance performance during the next fiscal year will be; 1. establish and enforce Standard Operating Purchases 2. Reestablish 120-day Recertification protocols and enforce compliance 3. Streamline elderly and disabled customers based on initial HOTMA 3 yr interval 4. Quantitative metrics added to performance evaluation for all staff, including error-rate 5. Periodic one-on-one check-ins from supervisors 6. Enforce mandatory, individual staff, QC forms to ensure files are maintained in order 7. Weekly staff meetings to review and discuss regulations, administrative policies, PIC issues, QC errors, and required protocols 8. Enforce internal QC procedures at a minimum of 10% annually 9. Enforce electronic files for every customer 10. In an effort to exceed expectations staff will attend trainings to update and teach staff requirements and protocols on pending HACFM changes to include PBV, HOTMA, NSPIRE, and HCV Specialist training for newer staff

Categories

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

Other Findings in this Audit

  • 516518 2024-002
    Material Weakness Repeat
  • 516519 2024-001
    Material Weakness Repeat
  • 516520 2024-001
    Material Weakness Repeat
  • 1092959 2024-001
    Material Weakness Repeat
  • 1092960 2024-002
    Material Weakness Repeat
  • 1092961 2024-001
    Material Weakness Repeat
  • 1092962 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 Public Housing Operating Fund $4.76M
14.872 Public Housing Capital Fund $2.93M
14.889 Choice Neighborhoods Implementation Grants $1.84M
14.879 Mainstream Vouchers $1.75M
21.027 Coronavirus State and Local Fiscal Recovery Funds $915,065
14.871 Section 8 Housing Choice Vouchers $833,896
14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants $383,834
14.895 Jobs-Plus Pilot Initiative $353,348
14.896 Family Self-Sufficiency Program $196,495
14.870 Resident Opportunity and Supportive Services - Service Coordinators $75,654