Finding 577103 (2022-005)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-10-25
Audit: 1234
Organization: Indianapolis Housing Agency (IN)
Auditor: Somerset CPAS

AI Summary

  • Core Issue: Management failed to maintain proper documentation for tenant eligibility, leading to missing files and incomplete records.
  • Impacted Requirements: This affects compliance with federal funding eligibility, housing quality standards, and proper tracking of tenant waitlists.
  • Recommended Follow-Up: Review and improve procedures for maintaining tenant files and waitlists to strengthen internal controls and ensure compliance.

Finding Text

Criteria: Management is responsible for maintaining appropriate documentation to substantiate tenant eligibility determinations and compliance with applicable special tests and provisions. Condition and Context: We selected a sample of 60 tenant files for testing Eligibility; Reporting - Special Reporting HUD-50058, Family Report; and Special Tests and Provisions: Selection for Waiting List, Reasonable Rent, Housing Quality Standards Inspections, and Housing Assistance Payment. Our sample was not statistically valid. Of the items selected we noted the following: 1) 7 of the 60 tenant files selected for testing were not able to be located. 2) 11 of the 60 tenant files selected for testing were missing documentation related to housing quality standards inspections. We also requested supporting documentation to show progression of tenants being moved through the waitlist and into the Housing Choice Voucher program. Management was unable to provide this information due to system limitations and lack of appropriate tracking of this data throughout the year. This is a repeat finding of 2021-005, 2020-005 and 2019-005. Cause and Effect: The seven missing tenant files resulted in an inability to make a determination on compliance for these tenants. Unsupported tenant eligibility determinations could impact future federal funding. The use of improper income related to eligibility resulted in noncompliance as relates to eligibility, rent reasonableness, and HAP. The inability to provide data to support the progression of the tenant waitlist resulted in an inability to make a determination on compliance for all tenants selected and could result in tenants being improperly added to the program. Recommendation: We recommend the Agency review current procedures surrounding maintenance of tenant files and waitlists to ensure adequacy of the procedures in place and identify areas of improvement to establish and maintain adequate internal controls over compliance. Views of Responsible Officials and Planned Corrective Actions: The Agency agrees with the recommendation. See the Corrective Action Plan for the Agency’s response and planned completion date.

Categories

HUD Housing Programs Eligibility Reporting Special Tests & Provisions Internal Control / Segregation of Duties

Other Findings in this Audit

  • 659 2022-003
    Material Weakness Repeat
  • 660 2022-004
    -
  • 661 2022-005
    Material Weakness Repeat
  • 662 2022-006
    - Repeat
  • 663 2022-007
    -
  • 664 2022-008
    - Repeat
  • 665 2022-009
    -
  • 666 2022-010
    -
  • 667 2022-003
    Material Weakness Repeat
  • 668 2022-004
    -
  • 669 2022-005
    Material Weakness Repeat
  • 670 2022-006
    - Repeat
  • 671 2022-007
    -
  • 672 2022-008
    - Repeat
  • 577101 2022-003
    Material Weakness Repeat
  • 577102 2022-004
    -
  • 577104 2022-006
    - Repeat
  • 577105 2022-007
    -
  • 577106 2022-008
    - Repeat
  • 577107 2022-009
    -
  • 577108 2022-010
    -
  • 577109 2022-003
    Material Weakness Repeat
  • 577110 2022-004
    -
  • 577111 2022-005
    Material Weakness Repeat
  • 577112 2022-006
    - Repeat
  • 577113 2022-007
    -
  • 577114 2022-008
    - Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $60.27M
14.872 Public Housing Capital Fund $2.27M
14.850 Public and Indian Housing $1.73M
14.879 Mainstream Vouchers $529,342
14.231 Emergency Solutions Grant Program $196,547
14.896 Family Self-Sufficiency Program $133,418