Finding 541818 (2024-004)

Significant Deficiency Repeat Finding
Requirement
E
Questioned Costs
$1
Year
2024
Accepted
2025-03-31

AI Summary

  • Core Issue: The Authority failed to provide necessary documentation for tenant eligibility, impacting compliance with federal requirements.
  • Impacted Requirements: The PHA must verify and document family income, asset values, and related expenses for tenant files.
  • Recommended Follow-Up: Implement stronger controls to ensure all required documentation is maintained in tenant files.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher ClusterAssistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2024 Award Period: July 1, 2023 – June 30, 2024 Compliance Requirement: Eligibility Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The PHA must obtain and document in the tenant file third-party verification of the following factors, or must document in the tenant file why third-party verification was not available:(i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income. (2 CFR section 982.516) Condition: The Authority did maintain support for the income used in a tenant’s recertification. Questioned costs: $461 Context: Exceptions were noted in 5 out of 60 tenant files: • The Authority was unable to support the income calculations in 2 files. • The Authority was unable to support the expense calculations in 3 files. Cause: The Authority did not maintain the proper support for the eligibility determination. Effect: The Authority is not in compliance with eligibility requirements. Repeat Finding: Yes, see finding 2023-008. Recommendation: We recommend the Authority implements controls to ensure that tenant files contain all required documentation. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Compliance Requirement: Eligibility Recommendation: We recommend the Authority implements controls to ensure that tenant files contain all required documentation. Views of responsible officials: There is no disagreement with the audit finding. Action planned/taken in response to finding: No later than May 2025, SC Housing is restructuring the HCV department. This realignment will reassign the staff member responsible for oversight of the HCV Administrative staff. In addition, all staff will receive additional training for all administrative functions, in order to minimize the number of errors moving forward. Regarding these specific exceptions, staff is working to collect necessary documentation to correct the records, one exception was previously corrected on 11/1/24. Name(s) of the contact person(s) responsible for corrective action: Lisa Wilkerson, Director of Rental Assistance and Compliance Director of HCVP Administration and Services Planned completion date for corrective action plan: Restructure in planned for late April, initial training will begin immediately and continue as needed.

Categories

Questioned Costs Eligibility HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 541812 2024-002
    Material Weakness Repeat
  • 541813 2024-002
    Material Weakness Repeat
  • 541814 2024-002
    Material Weakness Repeat
  • 541815 2024-003
    Material Weakness Repeat
  • 541816 2024-003
    Material Weakness Repeat
  • 541817 2024-003
    Material Weakness Repeat
  • 541819 2024-004
    Significant Deficiency Repeat
  • 541820 2024-004
    Significant Deficiency Repeat
  • 541821 2024-005
    Significant Deficiency Repeat
  • 541822 2024-005
    Significant Deficiency Repeat
  • 541823 2024-005
    Significant Deficiency Repeat
  • 1118254 2024-002
    Material Weakness Repeat
  • 1118255 2024-002
    Material Weakness Repeat
  • 1118256 2024-002
    Material Weakness Repeat
  • 1118257 2024-003
    Material Weakness Repeat
  • 1118258 2024-003
    Material Weakness Repeat
  • 1118259 2024-003
    Material Weakness Repeat
  • 1118260 2024-004
    Significant Deficiency Repeat
  • 1118261 2024-004
    Significant Deficiency Repeat
  • 1118262 2024-004
    Significant Deficiency Repeat
  • 1118263 2024-005
    Significant Deficiency Repeat
  • 1118264 2024-005
    Significant Deficiency Repeat
  • 1118265 2024-005
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.195 Project-Based Rental Assistance (pbra) $164.29M
14.239 Home Investment Partnerships Program $93.81M
14.275 Housing Trust Fund $8.84M
21.023 Emergency Rental Assistance Program $6.50M
21.026 Homeowner Assistance Fund $4.56M
14.871 Section 8 Housing Choice Vouchers $2.90M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $981,190
14.879 Mainstream Vouchers $450,646