Finding 599054 (2022-002)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-08-14
Audit: 22118
Organization: Aurora Housing Authority (CO)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: Aurora Housing Authority failed to conduct required annual reexaminations of tenant eligibility and income in 2022.
  • Impacted Requirements: Compliance with HUD guidelines for tenant rent adjustments and housing assistance payments was not maintained.
  • Recommended Follow-Up: Implement controls to ensure timely completion of annual re-certifications moving forward.

Finding Text

Eligibility Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: As required by HUD guidelines, Aurora Housing Authority is required to establish controls related to eligibility and reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary. Condition: Aurora Housing Authority?s controls in place for completing reexaminations were not in place during 2022. Cause: The program was set to terminate in September 2022 but was delayed until December 2022 and the Authority?s personnel were moved to other programs. Effect: The lack of controls resulted in many of the tenants not being reexamined during 2022 and HAP paid was paid using the last certification. Questioned Costs: Unknown Context/Sampling: A non-statistical sample of 40 transactions were selected for testing and 18 of the 40 selections did not have a recertification completed during 2022. Had the program ended in September as originally expected 8 of the 18 selections would not have needed reexaminations. Repeat Finding from Prior Year: No Recommendation: We recommend that Aurora Housing Authority implement controls to ensure timely completion of required annual re-certifications. View of Responsible Officials: Management agrees with the finding.

Categories

HUD Housing Programs Eligibility Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 22612 2022-002
    Significant Deficiency
  • 22613 2022-003
    Significant Deficiency
  • 22614 2022-001
    Significant Deficiency
  • 22615 2022-001
    Significant Deficiency
  • 22616 2022-001
    Significant Deficiency
  • 599055 2022-003
    Significant Deficiency
  • 599056 2022-001
    Significant Deficiency
  • 599057 2022-001
    Significant Deficiency
  • 599058 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $1.48M
14.871 Section 8 Housing Choice Vouchers $1.03M
14.879 Mainstream Vouchers $619,914
14.239 Home Investment Partnerships Program $200,000
14.231 Emergency Solutions Grant Program $57,031
14.267 Continuum of Care Program $38,581
14.850 Public and Indian Housing $12,267