Finding 528446 (2024-003)

Significant Deficiency Repeat Finding
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-03-17

AI Summary

  • Core Issue: The Authority is not consistently maintaining documentation for eligibility controls in the Housing Choice Voucher program.
  • Impacted Requirements: Failure to comply with federal regulations and internal control policies related to tenant recertification.
  • Recommended Follow-Up: Train Occupancy Representatives on the Tenant Recertification Checklist and ensure proper filing in tenant files.

Finding Text

2024-003 – Eligibility – Significant Deficiency U.S. Department of Housing and Urban Development 14.850 – Public Housing Operating Fund E. Eligibility Condition: During review of the Housing Choice Voucher program, RBT noted that the Authority was not appropriately maintaining documentation of the controls over Eligibility. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: Although the Authority updated its internal control policies to require the use of a Tenant Recertification Checklist and filing of the completed checklist in the applicable tenant file, this control was not consistently followed during the year due to staffing turnover. Effect: Potential noncompliance if a control is missed. Questioned Costs: None identified. Perspective: Twelve of twenty-nine tenant files reviewed were missing the Tenant Recertification Checklist. Repeat Finding: This is a repeat finding Recommendation: We recommend that the Authority train all Occupancy Representatives on the proper use of the Tenant Recertification Checklist and monitor that the checklists are being maintained in the tenant files. Auditee’s Response: See corrective action plan.

Corrective Action Plan

Auditee’s Response and Planned Corrective Action The Authority has had staff and consultant turnover during the period under audit. Additionally, the eviction moratorium and lasting effects from the COVID-19 pandemic has resulted in delaying or receiving no responses from tenants regarding obtaining the necessary documentation for eligibility requirements. The Authority has evidentiary documentation supporting their attempts to obtain the required documents from the tenants, such as certified letters, and courts suspension of evictions during the eviction process. Other documentation related to the moratorium that resulted from the COVID-19 pandemic, is available which includes evictions for nonpayment and noncompliance. The Authority has been working with legal counsel on these matters and continues to pursue this vigorously. The Authority has also hired new staff and consultants who has been diligently working to implement improvements. In most of the files the checklist cover pages were included but in some files reviewed the oversite cover page checklist was missing, however the required documentations were in place. A greater effort will be made immediately that all files will have completed the control check list cover pages in place with all appropriate signatures noted. Planned Implementation Date of Corrective Action: March 4, 2025 Person Responsible for Corrective Action: Keith Burrell, Executive Director

Categories

HUD Housing Programs Eligibility Significant Deficiency Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 1104888 2024-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 Public Housing Operating Fund $708,204
14.872 Public Housing Capital Fund $369,792