FAC Explorer

Finding 538029 (2024-003)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-27
Audit: 349044
Organization: The New Reidsville Housing Authority (NC)
Auditor: Rector Reeder & Lofton PC

AI Summary

  • Core Issue: The Housing Authority could not provide necessary documentation for two tenants on the Housing Choice Voucher waiting list, likely due to high staff turnover.
  • Impacted Requirements: This noncompliance raises concerns about transparency and adherence to federal regulations.
  • Recommended Follow-Up: Establish a standardized process for accurate documentation of applicant management on the waiting list.

Finding Text

Finding 2024-003 – Housing Choice Voucher Waiting List – Special Tests and Provisions – Noncompliance & Material Weakness – Housing Choice Voucher Program – ALN #14.871 Condition & Cause: We reviewed admissions to the Housing Choice Voucher program during the audit period and requested documentation for two (2) tenants selected from the waiting list for further review. The Authority was unable to produce readily available documentation. This 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 and the Housing Authority’s Administrative Plan. Effect: The absence of a proper audit trail for the waiting list could raise concerns about transparency, fairness, and compliance with federal requirements. Recommendation: We recommend that the Agency implement a standardized procedure for maintaining complete and accurate documentation for the ranking, selection, and removal of applicants from the Housing Choice Voucher waiting list. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes

Corrective Action Plan

Finding 2024-003 – Housing Choice Voucher Waiting List – Special Tests and Provisions – Noncompliance & Material Weakness – 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. 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 revised Admin Plan and internal compliance program are scheduled to be implemented effective July 1, 2025.

Categories

Special Tests & Provisions HUD Housing Programs Material Weakness

Other Findings in this Audit

  • 538027 2024-001
    Significant Deficiency Repeat
  • 538028 2024-002
    Material Weakness Repeat
  • 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