Finding 58138 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-06-12
Audit: 54100
Organization: Amesbury Housing Authority (MA)
Auditor: Marcum LLP

AI Summary

  • Core Issue: The Authority failed to provide documentation for two new admissions from the waiting list, raising concerns about compliance with selection policies.
  • Impacted Requirements: Written policies for selecting applicants from the waiting list must be followed, as outlined in the HCVP administrative plan and federal regulations.
  • Recommended Follow-Up: Implement a new admission checklist to ensure all new participants are properly selected according to the Authority's policies.

Finding Text

2022-001 ? SPECIAL TESTS AND PROVISIONS: SELECTION FROM THE WAITING LIST Other Matter/Significant Deficiency U.S. Department of Housing and Urban Development Assistance Listing Number: 14.871 ? Housing Voucher Cluster CRITERIA The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. Except as provided in 24 CFR section 982.203 Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. ?Selection? from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). CONDITION As a result of our audit procedures, we noted 2 instances in which the Authority could not provide waiting list documentation for two new admissions. As a result, we could not confirm whether those new admissions were housed in accordance with the Authority?s policy. CAUSE The Authority?s system of internal controls over the participant admission process was not sufficient to meet the Authority?s new admission selection policies. EFFECT New participants admitted to the program may not have been properly selected from the waiting list in accordance with the Authority?s applicant selection policies. QUESTIONED COSTS None noted. CONTEXT We selected a sample of 3 from a population of 22 new admissions. This was not a statistically valid sample. REPEAT FINDING This is not a repeat finding. RECOMMENDATION We recommend that the Authority develop and implement a new admission checklist to ensure all new participants are admitted to the program in accordance with the Authority?s policies. AUDITEE?S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.

Corrective Action Plan

Finding #2022-001 ? Special Tests and Provisions: Selection from the Waiting List The Authority acknowledges that waiting list documentation could not be located for two (2) new admissions during the audit period. The Authority experienced significant staff turnover in recent years that resulted in lacking internal controls. The Authority has effectively corrected this deficiency by contracting with the Chelsea Housing Authority for administration of the Authority?s Section 8 Housing Choice Voucher Program. The Chelsea Housing Authority has staff capacity, experience, and certifications to effectively administer all aspects of this program including selections from the waiting list. Implementation Date of Corrective Action: February 7, 2022 Person Responsible for Correction Action: Adam Garvey, Executive Director

Categories

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

Other Findings in this Audit

  • 58139 2022-002
    Significant Deficiency Repeat
  • 634580 2022-001
    Significant Deficiency
  • 634581 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.74M
14.195 Section 8 Housing Assistance Payments Program $96,235