Finding 569898 (2024-006)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-07-01

AI Summary

  • Core Issue: Tenant files for Low Rent Public Housing lacked necessary documentation, including waitlist information and signed forms.
  • Impacted Requirements: Recertification every 12 months and proper tenant selection documentation were not followed.
  • Recommended Follow-Up: Implement a checklist for required documents in each tenant file and ensure compliance with new policies and procedures.

Finding Text

Criteria:Tenant files for Low Rent Public Housing are required to undergo recertification every 12 months and include a list of required forms signed by the tenant. In addition, each tenant file should have documentation showing that they were included on a wait list and how their selection was made. Condition:Of the tenant files examined for testing, seven tenants had moved in during the year of the audit and none of them contained documentation relating to the wait list and how they were selected. In addition, one tenant file was missing signed forms relating to privacy and release authorization forms. Effect:Required procedures for tenant selection and maintaining of tenant documentation were not being followed. Cause: Lack of oversight by management and the Board. Recommendation:A checklist of required documentation should be included in each tenant file to ensure all forms are included and properly signed. In addition, a copy of the applicable waitlist included selection process should be with each tenant file.Views of Responsible Officials and Planned Corrective Actions:We agree with the auditors' comments, and the following action will be taken to improve the situation. This situation was created when the previous administration failed to maintain all tenant records in accordance with HUD/CFR requirements. KMHA has taken the following actions.1. KMHA's Board has approved new written Tenant policies and procedures, to include a new ACOP (CFR 960), and are in place now.2. Appropriate staff have begun taking proper safeguards to ensure a waiting list is in place and utilized, each tenant application is filed and proper action taken and tenant files are properly maintained and complete. A checklist is placed inside each tenant file to assist in completeness.

Corrective Action Plan

Name of Contact Person:Veronica Williams, Interim Executive DirectorCorrective Action:KMHA's Board has approved new written Tenant policies and procedures, to include a new ACOP (CFR 960), and are in place now.Appropriate staff have begun taking proper safeguards to ensure a waiting list is in place and utilized, each tenant application is filed and proper action taken and tenant files are properly maintained and complete. A checklist is placed inside each tenant file to assist in completeness.Proposed Completion Date: Immediately

Categories

HUD Housing Programs

Other Findings in this Audit

  • 569893 2024-001
    Material Weakness Repeat
  • 569894 2024-002
    Material Weakness Repeat
  • 569895 2024-003
    Material Weakness Repeat
  • 569896 2024-004
    Material Weakness
  • 569897 2024-005
    Material Weakness Repeat
  • 569899 2024-007
    Material Weakness Repeat
  • 1146335 2024-001
    Material Weakness Repeat
  • 1146336 2024-002
    Material Weakness Repeat
  • 1146337 2024-003
    Material Weakness Repeat
  • 1146338 2024-004
    Material Weakness
  • 1146339 2024-005
    Material Weakness Repeat
  • 1146340 2024-006
    Material Weakness Repeat
  • 1146341 2024-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 Public Housing Operating Fund $684,779
14.872 Public Housing Capital Fund $268,729