Finding 613595 (2022-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-03-28

AI Summary

  • Core Issue: The Authority has repeated findings of material weaknesses in internal controls and noncompliance with HUD requirements regarding tenant eligibility and recertification.
  • Impacted Requirements: Compliance with 24 CFR 982.516 and the Authority’s Administrative Plan for accurate tenant files and proper HAP determination.
  • Recommended Follow-Up: Implement ongoing quality control reviews, enhance staff training, and assess staffing levels to ensure adherence to procedures.

Finding Text

2022-001 Eligibility: HCV Tenant Files Section 8 Housing Voucher Cluster (Section 8): Section 8 Housing Choice Vouchers Program ? CFDA Number 14.871 Mainstream Vouchers ? CFDA Number 14.879 Material Weakness in Internal Control, Material Noncompliance Repeat Finding from June 30, 2021 (Finding 2021-001 and originally reported in 2017 as Finding 2017-001) Condition: Out of a total tenant population of approximately 1400 vouchers, 26 files were selected for testing. Exceptions were noted as follows: ? 1 utility allowance error where the utility allowance amount of $288 on the 52667 form was reported on the 50058 form for $298. This had no effect on the HAP rent. ? 2 214 affidavit errors where a member of the tenant?s household did not checkmark the box on their 214 forms indicating that they are either a U.S. citizen or a permanent resident. Based on the birth certificates, the member of the households were a U.S. citizen. ? 1 214 affidavit error where the 214 form was missing for a member of the tenant?s household. ? 1 income error where one of the tenant?s pay check was missing for the tenant?s income calculation. Basing the tenant?s wage income calculation on the support in the tenant file would not have changed the HAP rent. ? 1 HAP contract error where the HAP contract is missing from the tenant file. ? 2 9886 errors where members of the household over the age of 18 did not sign and date the 9886 forms. ? 2 deduction errors where members of two households, who were 18 years of age, received a $480 deduction. Correcting this error caused the HAP rent to decrease by $12 for each tenant. ? 1 lead base paint error where the lessor (landlord) did not sign the form to indicate that the information provided to the tenant is accurate. ? 2 EIV errors where the EIV form was not generated or were missing for the tenant?s annual recertification. ? 1 50058 error where the tenant?s childcare support was coded as unemployment benefits on the 50058. ? 1 tenant file unavailable for review due to Hurricane IAN, but no support could be provided. In addition, we also noted as part of our new admissions testing (21 files tested out of approximately 203 new admissions) the following: ? 1 tenant file unavailable for review due to Hurricane IAN, but no support could be provided. Criteria: 24 CFR 982.516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. In addition, the Authority?s Administrative Plan also requires following proper procedures for determination of HAP and documentation in the tenant files. Questioned Costs: None. Effect: The Authority is not in compliance with all of the HUD requirements regarding eligibility and tenant recertification, which could result in incorrect total tenant payments for rent and HAP payments to landlords. Cause: Procedures to ensure compliance with all of the HUD requirements were not being carefully followed. Auditor?s Recommendation: The Authority should correct the deficiencies noted in the tested files and utilize an ongoing quality control review process on the entire tenant population to ensure proper compliance with the requirements related to tenant eligibility. Ongoing staff training and timely management reviews should be utilized to ensure staff is aware of acceptable procedures. In addition, the Authority should review staffing levels, skill sets and case load. Views of Responsible Officials of the Auditee: The Authority agrees with the finding and has taken corrective action. See the ?Action Taken? on the Corrective Action Plan

Categories

HUD Housing Programs Eligibility Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 37144 2022-001
    Material Weakness Repeat
  • 37145 2022-002
    Material Weakness
  • 37146 2022-003
    Material Weakness
  • 37147 2022-001
    Material Weakness Repeat
  • 37148 2022-002
    Material Weakness
  • 37149 2022-003
    Material Weakness
  • 37150 2022-001
    Material Weakness Repeat
  • 37151 2022-002
    Material Weakness
  • 37152 2022-003
    Material Weakness
  • 37153 2022-001
    Material Weakness Repeat
  • 37154 2022-002
    Material Weakness
  • 37155 2022-003
    Material Weakness
  • 37156 2022-001
    Material Weakness Repeat
  • 37157 2022-002
    Material Weakness
  • 37158 2022-003
    Material Weakness
  • 37159 2022-004
    Material Weakness Repeat
  • 37160 2022-005
    Material Weakness Repeat
  • 37161 2022-004
    Material Weakness Repeat
  • 37162 2022-005
    Material Weakness Repeat
  • 613586 2022-001
    Material Weakness Repeat
  • 613587 2022-002
    Material Weakness
  • 613588 2022-003
    Material Weakness
  • 613589 2022-001
    Material Weakness Repeat
  • 613590 2022-002
    Material Weakness
  • 613591 2022-003
    Material Weakness
  • 613592 2022-001
    Material Weakness Repeat
  • 613593 2022-002
    Material Weakness
  • 613594 2022-003
    Material Weakness
  • 613596 2022-002
    Material Weakness
  • 613597 2022-003
    Material Weakness
  • 613598 2022-001
    Material Weakness Repeat
  • 613599 2022-002
    Material Weakness
  • 613600 2022-003
    Material Weakness
  • 613601 2022-004
    Material Weakness Repeat
  • 613602 2022-005
    Material Weakness Repeat
  • 613603 2022-004
    Material Weakness Repeat
  • 613604 2022-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $11.44M
14.850 Public and Indian Housing $3.74M
14.872 Public Housing Capital Fund $1.52M
14.879 Mainstream Vouchers $888,003
14.871 Ehv Section 8 Housing Choice Vouchers $301,932
14.850 Covid-19 Public and Indian Housing $118,463
14.871 Covid-19 Section 8 Housing Choice Vouchers $92,481
14.896 Family Self-Sufficiency Program $70,638
14.870 Resident Opportunity and Supportive Services - Service Coordinators $53,848
14.879 Covid-19 Mainstream Vouchers $5,952