Finding 564224 (2023-009)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2025-06-09
Audit: 358331
Organization: Housing Authority of Alto (TX)

AI Summary

  • Core Issue: Tenant files for Housing Choice Vouchers are missing critical documentation, leading to potential inaccuracies in rent calculations.
  • Impacted Requirements: HUD guidelines on tenant file documentation, including proof of citizenship, income verification, and rent reasonableness determinations.
  • Recommended Follow-Up: Ensure proper maintenance of tenant files and implement supervisory reviews to guarantee completeness and accuracy.

Finding Text

2023-009. Tenant Files – Housing Choice Vouchers Criteria: HUD guidelines on tenant file documentation and maintenance must be followed at all times. Condition: During my review of fifteen tenant files, I noted the following deficiencies:  Four files did not contain proof of citizenship (Form 214) and the lease agreement signed. No annual independent income verification was present in three tenant files. None of the files contained determination of rent reasonableness form. Two files did not have an re-inspection performed after the initial failed inspection. Questioned Costs: None noted. Effect: Tenant files are incomplete and could have incorrect rent calculation and documentation. Cause : Unknown, as the current administration is not aware of the prior administrations process of managing the tenant files. Recommendation: I recommend that the Authority ensure that all tenant files are maintained properly, and supervisory reviews are performed to ensure completeness and accuracy. Management’s Response: The audit revealed missing critical documentation in Housing Choice Vouchers tenant files. Staff will be retrained on HUD’s file management requirements, and a standardized audit and review process has been introduced for both new tenant intakes and annual recertifications. Corrective efforts are underway to update and complete all current files.

Corrective Action Plan

Tenant Files – Housing Choice Vouchers Corrective action planned: Staff retrained on HUD requirements. Standard audit process implemented for incoming and annual recertifications. Quarterly file reviews and a new checklist for income verification implemented. Contact person: Candice Ivory, Executive Director / Deputy Director Anticipated completion date: July 31, 2025/ Ongoing Monitoring

Categories

HUD Housing Programs

Other Findings in this Audit

  • 564225 2023-010
    Material Weakness Repeat
  • 564226 2023-011
    Material Weakness Repeat
  • 1140666 2023-009
    Material Weakness Repeat
  • 1140667 2023-010
    Material Weakness Repeat
  • 1140668 2023-011
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $991,902
14.850 Public and Indian Housing $160,924
14.872 Public Housing Capital Fund $79,006