Finding 538749 (2024-005)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-28

AI Summary

  • Core Issue: The PHA failed to maintain necessary documentation for Public Housing waiting list applicants, violating federal regulations.
  • Impacted Requirements: Noncompliance with 24 CFR Part 960.206(e)(2) regarding clear audit trails for applicant selection.
  • Recommended Follow-Up: Review and improve policies for applicant selection and establish a reliable documentation system to ensure compliance and availability of records.

Finding Text

Finding 2024-005 – Special Tests and Provisions – Public Housing Waiting List ALN 14.850 – Noncompliance & Significant Deficiency Criteria: 24 CFR Part 960.206(e)(2) states that “the method for selecting applicants must leave a clear audit trail that can be used to verify that each applicant has been selected in accordance with the method specified in the PHA plan.” Condition & cause: During our review of the Public Housing waiting lists, we found that the PHA was unable to provide documentation for any of the requested applicants. Upon further inquiry, it was determined that the lists had either been misplaced or destroyed. Effect: Failure to maintain documentation of proper wait list selections can lead to improper housing of applicants, as well as an increased risk of Fair Housing accusations. Recommendation: We recommend that the PHA review its policies and procedures surrounding the selections of applicants to ensure compliance with federal, state and local regulations. The PHA should then develop a documentation system that ensures a clear trail can be provided on the movement of applicants while on the waiting list. Finally, they should ensure that documentation is available for review when requested. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes

Corrective Action Plan

Finding 2024-005 – Special Tests and Provisions – Public Housing Waiting List ALN 14.850 – Noncompliance & Significant Deficiency Recommendation: We recommend that the PHA review its policies and procedures surrounding the selections of applicants to ensure compliance with federal, state and local regulations. The PHA should then develop a documentation system that ensures a clear trail can be provided on the movement of applicants while on the waiting list. Finally, they should ensure that documentation is available for review when requested. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will review our policies and procedures over waitlist management and updated as necessary. We will work with our software provided to obtain the current listing and best practices for maintaining data in the system. Finally, we will conduct an outreach to all applicants on the current list to obtain updated applications and determine eligibility status. Name(s) of the contact person(s) responsible for corrective action: Navonya Kolani, Executive Director Planned completion date for corrective action plan: September 30, 2025.

Categories

HUD Housing Programs Special Tests & Provisions Significant Deficiency

Other Findings in this Audit

  • 538744 2024-001
    Material Weakness
  • 538745 2024-002
    Material Weakness Repeat
  • 538746 2024-002
    Material Weakness Repeat
  • 538747 2024-003
    Significant Deficiency Repeat
  • 538748 2024-004
    Significant Deficiency
  • 1115186 2024-001
    Material Weakness
  • 1115187 2024-002
    Material Weakness Repeat
  • 1115188 2024-002
    Material Weakness Repeat
  • 1115189 2024-003
    Significant Deficiency Repeat
  • 1115190 2024-004
    Significant Deficiency
  • 1115191 2024-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $2.56M
14.850 Public and Indian Housing $2.11M
14.872 Public Housing Capital Fund $0