Finding 560309 (2023-002)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2023

Accepted

2025-05-14

Audit: 356224

Organization: Windsor Housing Authority (CT)

Auditor: Cbiz CPAS PC

AI Summary

Core Issue: The Public Housing Authority (PHA) failed to conduct timely annual reexaminations of family income and composition, leading to potential inaccuracies in tenant rent calculations.
Impacted Requirements: The PHA did not meet the requirement for annual reexaminations and third-party verifications as outlined in 24 CFR 982.516.
Recommended Follow-Up: Management should enhance oversight, review policies, and provide training on reexamination procedures to ensure compliance.

Finding Text

2023-002 – ELIGIBILITY Material Weakness/Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.871/14.879 – Housing Voucher Cluster CRITERIA PHA responsibility for reexamination and verification. (1) The PHA must conduct a reexamination of family income and composition at least annually. (2) 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. (24 CFR 982.516). CONDITION As a result of our audit, we identified the following exceptions in our testing: > Three (3) instances of untimely recertifications CAUSE The Authority did not properly oversee the administration of the Housing Choice Voucher and Mainstream Voucher programs. EFFECT The Authority is potentially incorrectly calculating and adjusting tenant rent and housing assistance payments. QUESTIONED COSTS None identified. CONTEXT We selected a sample of 22 from a population of 200. This was not a statistically valid sample. REPEAT FINDING Repeat of finding 2022-003 RECOMMENDATION We recommend the Authority’s management take an active role in reviewing their policies and monitoring the Authority’s compliance with those policies. We recommend the Authority provide training for the performance of reexamination procedures. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.

Corrective Action Plan

2023-002- ELIGIBILITY Material Weakness/Noncompliance Auditee’s Response and Planned Corrective Action We follow HUD guidelines where required and Untimely recertifications are typically not within the control of the Housing Authority. Encompassing HUD guidelines, the recertification process for tenants begins 90 days prior to the recert date, but if tenants do not provide all the requested information, the recertification will be delayed until the information is provided, tenant is converted to a market rate rent, or we begin the termination process for termination of the voucher. We will continue to follow the HUD process for the management of the Housing Choice Voucher Programs/Mainstream voucher programs. Planned Implementation Date of Corrective Action: Immediately Person Responsible for Corrective Action: Maria DeMarco, President of DeMarco Management Corporation

Other Findings in this Audit

560310 2023-003

Material Weakness Repeat
560311 2023-002

Material Weakness Repeat
560312 2023-003

Material Weakness Repeat
1136751 2023-002

Material Weakness Repeat
1136752 2023-003

Material Weakness Repeat
1136753 2023-002

Material Weakness Repeat
1136754 2023-003

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.871	Section 8 Housing Choice Vouchers	$1.52M
14.879	Mainstream Vouchers	$339,648