Finding 581976 (2020-003)

Criteria: As required by 24 CFR section 982.204, participants admitted to the program must be selected from the Housing Authority's waiting list, unless as provided for in 24 CFR section 982.203 (special admission (non-waiting list)). Condition/Context: We selected a sample of five new tenants during the fiscal year under audit. The Housing Authority was unable to provide documentation that three of these individuals were selected from the waiting list. We also selected a sample of four applicants that reached the top of the waiting list as of September 30, 2020 to ascertain if they were admitted to the program or provided the opportunity to be admitted to the program. No documentation was provided regarding the four applicants. Our samples were not statistically valid. Questioned Costs: Not determinable Cause: The lack of supporting documentation may be related to the Housing Authority changing voucher program administrators during fiscal year 2020. While the current administrator has access to tenant files, the waiting list administration in fiscal 2020 was done by a previous contractor. Also due to the Housing Authority falling behind on obtaining audits, the documents being requested by auditors are several years old and may have been purged. Effect: Admissions to the program may not be done in accordance with policies and regulations. Recommendation: The Housing Authority should ensure the vendor administering the program maintains proper records of selection of applicants from the waiting list. Views of Responsible Officials: WBHA is concerned that the current contract administrator for the HCV Program has failed to comply with providing the requested documentation as required by 24 CFR section 982.204. We are engaging with our current HCV Contract Administrator (Allegiant Property Management, LLC) on expectations for compliance currently and in the future. WBHA is also exploring other contract administrators or possibly opting out of the HCV Program altogether and working with WHEDA to administer WBHA’s HCV Program.