Finding 538027 (2024-001)

Significant Deficiency Repeat Finding
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-03-27

AI Summary

  • Core Issue: 30% of tenant files reviewed were noncompliant, lacking essential documentation like the EIV report and Declaration of Section 214 Status.
  • Impacted Requirements: Compliance with federal regulations and HUD guidelines for maintaining accurate Housing Choice Voucher tenant files.
  • Recommended Follow-Up: Conduct a comprehensive audit of tenant files and enhance monitoring processes to ensure adherence to documentation requirements.

Finding Text

Finding 2024-001 – Housing Choice Voucher Tenant Files – Eligibility – Noncompliance & Significant Deficiency – Housing Choice Voucher Program – ALN #14.871 Condition & Cause: We reviewed ten (10) tenant files from the Housing Choice Voucher (HCV) program and found three (3) files, or 30% of our sample, to be noncompliant. We noted two (2) files did not contain an Enterprise Income Verification (EIV) report that should have been pulled during reexamination, and one (1) file was missing a signed Declaration of Section 214 Status. We believe these instances of noncompliance may be linked to the ongoing staff turnover in recent years. During the audit period, the Agency had three different Executive Directors and three different HCV Specialists. Criteria: The Code of Federal Regulations, the Housing Authority Administrative Plan and specific HUD guidelines in documenting and maintaining Housing Choice Voucher tenant files. Effect: Failure to maintain a Declaration of Status 214 or to use the EIV system in its entirety can result in errors in subsidy calculation or eligibility determination, as well as compromise the program’s compliance with regulatory requirements. Recommendation: We recommend that the Agency conduct a thorough tenant file audit of existing tenants to determine whether there are any additional misstatements. The Agency should determine the best way to monitor compliance with local and federal regulations as it pertains to tenant documentation and adjust internal procedures immediately. Questioned Costs: None Repeat Finding: Yes Was sampling statistically valid? Yes

Corrective Action Plan

Finding 2024-001 – Housing Choice Voucher Tenant Files – Eligibility – Noncompliance & Significant Deficiency – Housing Choice Voucher Program – ALN #14.871 Corrective Action Plan: The Agency has been in a period of transition and has seen turnover in several key positions over the last three years. In an effort to sustain Agency operations, untrained staff were placed in vacant positions. As of May 2024, the Agency has hired a certified specialist for its Housing Choice Voucher Program. With the hiring of qualified staff, the Agency has also implemented a plan to audit all Housing Choice Voucher Program tenant files and remedy deficiencies. The Agency is in the process of revising its Housing Choice Voucher Program Administrative Plan and establishing an internal compliance program to ensure adherence to local and federal regulations with regards to its Housing Choice Voucher Program. Person Responsible: Acie Scales, Section 8 Specialist, Nicole Jordan, Executive Director Anticipated Completion Date: The auditing of all tenant program files is scheduled to be completed by May 31, 2025. The revised Admin Plan and internal compliance program are scheduled to be implemented effective July 1, 2025.

Categories

HUD Housing Programs Eligibility Significant Deficiency

Other Findings in this Audit

  • 538028 2024-002
    Material Weakness Repeat
  • 538029 2024-003
    Material Weakness
  • 538030 2024-004
    Material Weakness
  • 1114469 2024-001
    Significant Deficiency Repeat
  • 1114470 2024-002
    Material Weakness Repeat
  • 1114471 2024-003
    Material Weakness
  • 1114472 2024-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $907,624
14.850 Public and Indian Housing $482,101
14.872 Public Housing Capital Fund $258,006
14.267 Continuum of Care Program $55,193
14.241 Housing Opportunities for Persons with Aids $26,411