Finding 555493 (2023-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2025-04-19

AI Summary

  • Core Issue: The Agency lacks proper internal controls to ensure compliance with HCV eligibility requirements.
  • Impacted Requirements: Failure to process annual certifications within 12 months and inadequate documentation of tenant income, assets, and expenses.
  • Recommended Follow-Up: Implement a quality control review of tenant files each month to ensure compliance with internal policies and address deficiencies.

Finding Text

Criteria or Specific Requirement: Eligibility The PHA must do the following: (1) 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 (24 CFR sections 5.230, 5.609, and 982.516). (2) 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 (24 CFR section 982.516). (3) Determine income eligibility and calculate the tenant’s rent payment using the documentation from third-party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516). (4) Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third-party verification (24 CFR section 982.516). (5) Select tenants from the HCVP waiting list (see III.N.1, “Special Tests and Provisions – Selection from the Waiting List”) (24 CFR sections 982.202 through 982.207). Condition: The Agency did not have adequate internal controls designed to ensure HCV eligibility requirements were being met. Questioned Costs: $120,680 Context: During the testing of the HCV tenant files for Eligibility, the following deficiencies were noted in 21 of 40 files: -21 instances where the annual certification was not processed within regulatory period of 12 months. -1 instance where a tenant’s income, assets, and expenses were not supported. Cause: The Agency failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Effect: The Agency is not in compliance with federal regulations regarding the recertification of household circumstances within 12 months and documentation related to tenants income, assets and expenses. Repeat Finding: Yes, 2022-002 Recommendation: We recommend that management should implement a quality control review over a sampling of tenant files recertified each month. The purpose of the review is to determine if the tenant files were prepared in accordance with internal policies and verify the compliance deficiencies have been corrected. Views of Responsible Officials: There is no disagreement with the audit finding.

Categories

Questioned Costs HUD Housing Programs Subrecipient Monitoring Eligibility Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 555491 2023-002
    Material Weakness Repeat
  • 555492 2023-002
    Material Weakness Repeat
  • 555494 2023-003
    Significant Deficiency Repeat
  • 555495 2023-003
    Significant Deficiency Repeat
  • 555496 2023-003
    Significant Deficiency Repeat
  • 555497 2023-004
    Significant Deficiency
  • 555498 2023-004
    Significant Deficiency
  • 555499 2023-005
    Significant Deficiency Repeat
  • 555500 2023-006
    Significant Deficiency
  • 555501 2023-007
    Material Weakness
  • 555502 2023-007
    Material Weakness
  • 555503 2023-008
    Significant Deficiency Repeat
  • 555504 2023-008
    Significant Deficiency Repeat
  • 555505 2023-008
    Significant Deficiency Repeat
  • 555506 2023-008
    Significant Deficiency Repeat
  • 555507 2023-008
    Significant Deficiency Repeat
  • 555508 2023-008
    Significant Deficiency Repeat
  • 555509 2023-008
    Significant Deficiency Repeat
  • 555510 2023-008
    Significant Deficiency Repeat
  • 555511 2023-008
    Significant Deficiency Repeat
  • 555512 2023-009
    Significant Deficiency
  • 555513 2023-009
    Significant Deficiency
  • 555514 2023-010
    Significant Deficiency
  • 555515 2023-010
    Significant Deficiency
  • 555516 2023-010
    Significant Deficiency
  • 1131933 2023-002
    Material Weakness Repeat
  • 1131934 2023-002
    Material Weakness Repeat
  • 1131935 2023-002
    Material Weakness Repeat
  • 1131936 2023-003
    Significant Deficiency Repeat
  • 1131937 2023-003
    Significant Deficiency Repeat
  • 1131938 2023-003
    Significant Deficiency Repeat
  • 1131939 2023-004
    Significant Deficiency
  • 1131940 2023-004
    Significant Deficiency
  • 1131941 2023-005
    Significant Deficiency Repeat
  • 1131942 2023-006
    Significant Deficiency
  • 1131943 2023-007
    Material Weakness
  • 1131944 2023-007
    Material Weakness
  • 1131945 2023-008
    Significant Deficiency Repeat
  • 1131946 2023-008
    Significant Deficiency Repeat
  • 1131947 2023-008
    Significant Deficiency Repeat
  • 1131948 2023-008
    Significant Deficiency Repeat
  • 1131949 2023-008
    Significant Deficiency Repeat
  • 1131950 2023-008
    Significant Deficiency Repeat
  • 1131951 2023-008
    Significant Deficiency Repeat
  • 1131952 2023-008
    Significant Deficiency Repeat
  • 1131953 2023-008
    Significant Deficiency Repeat
  • 1131954 2023-009
    Significant Deficiency
  • 1131955 2023-009
    Significant Deficiency
  • 1131956 2023-010
    Significant Deficiency
  • 1131957 2023-010
    Significant Deficiency
  • 1131958 2023-010
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $181.61M
14.239 Home Investment Partnerships Program (beginning Loan Balance) $127.26M
21.023 Covid-19 Emergency Rental Assistance $27.09M
14.218 Community Development Block Grants/entitlement Grants (beginning Loan Balance) $20.19M
14.239 Home Investment Partnerships Program (entitlements) $11.59M
14.850 Public and Indian Housing $10.07M
14.218 Community Development Block Grants/entitlement Grants (entitlements) $8.96M
14.218 Neighborhood Stabilization Program 1 (beginning Loan Balance) $8.10M
14.239 Home Investment Partnerships Program (program Income) $7.80M
14.872 Public Housing Capital Fund $7.68M
14.871 Emergency Housing Vouchers $6.91M
14.267 Continuum of Care Program $5.57M
14.218 Community Development Block Grants - Section 108 Loans (beginning Loan Balance) $5.50M
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $4.50M
14.231 Covid-19 Emergency Solutions Grant Program Cares Act $4.41M
14.218 Covid-19 Community Development Block Cares Act -Cv1 and Cv3 $4.27M
14.879 Mainstream Vouchers $2.82M
14.889 Choice Neighborhoods Implementation Grants $2.45M
14.241 Housing Opportunities for Persons with Aids (entitlements) $2.10M
14.218 Community Development Block Grants - Section 108 Loans $1.39M
14.231 Emergency Solutions Grant Program $911,431
14.856 Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation $353,153
14.218 Community Development Block Grants/entitlement Grants (program Income) $221,961
14.870 Resident Opportunity and Supportive Services - Service Coordinators $211,042
14.218 Neighborhood Stabilization Program 3 (program Income) $163,955
66.814 Epa Brownfield $155,454
14.896 Ph/hcv Family Self-Sufficiency Program $150,129
14.900 Lead Based Paint $133,507
14.896 Ph Family Self-Sufficiency Program $96,064
14.241 Covid-19 Housing Opportunities for Persons with Aids Cares Act $7,612
14.218 Neighborhood Stabilization Program 3 (entitlements) $1,086
14.241 Housing Opportunities for Persons with Aids (program Income) $167