Finding Text
Housing Authority of the City of Hot Springs respectfully submits the following corrective action plan for the year ended June 30, 2024.
Responsible Official: Linda Langan, Executive Director
Name and address of independent public accounting firm:
Miller & Rose, PA
1309 East Race
Searcy, AR 72143
Audit period: Year ended June 30, 2024
Oversight Agency: U.S. Department of Housing and Urban Development
The findings from the June 30, 2024 audit are discussed below. The findings are numbered to correspond to the auditing findings disclosed in Section C of the Schedule of Findings and Questioned Costs.
B. FINDINGS - FINANCIAL STATEMENTS AUDIT
None
C. FINDINGS AND QUESTIONED COSTS-MAJOR FEDERAL AWARD PROGRAMS AUDIT
Department of Housing and Urban Development
CFDA No. 14.871 – Housing Choice Voucher
2024-001 Eligibility
Condition and Criteria: The Authority’s purpose for existence is providing decent, safe and affordable housing
to low-income persons. As such, the Authority prepares a file for each admitted family, which contains information necessary to determine eligibility for assistance and calculations of rent assistance to be paid on the family’s behalf. HUD regulations prescribe the content of these family files. These requirements consist of the following:
a. As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility.
b. For both family income examinations and reexaminations, obtain and document in the family file third party verification of: (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent.
c. Determine income eligibility and calculate the tenant’s rent payment in accordance with HUD regulations.
d. Select tenants from the public housing waiting list in accordance with the PHA’s tenant selection policies.
e. Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary.
Population and Items Tested: Testing of seventy-one family files revealed the following deficiencies:
1. Two lacked documentation of rent reasonableness.
2. One file lacked an HQS inspection in the file.
3. Three files calculated an incorrect housing assistance payment.
4. One file lacked a utility allowance calculation.
5. One file lacked income verification at lease up.
Auditor’s Recommendation: This is a repeat finding. A thorough review of tenant files should be performed for the purpose of eliminating the deficiencies.
Grantee Response: We will comply with the auditor’s recommendation.
Anticipated Completion Date: June 30, 2025