Finding 61745 (2022-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-09-28
Audit: 53619
Organization: Schertz Housing Authority (TX)

AI Summary

  • Core Issue: A tenant file was missing, violating the requirement to retain files for at least three years under the Section 8 Housing Choice Voucher Program.
  • Impacted Requirements: Non-compliance with 24 CFR section 982.158 regarding eligibility documentation.
  • Recommended Follow-Up: Implement monitoring procedures to ensure compliance with file retention regulations.

Finding Text

FINDING 2022-001 ? MISSING TENANT FILE FEDERAL PROGRAM: ALN 14.871 Section 8 Housing Choice Voucher Program, US Department of Housing and Urban Development. COMPLIANCE REQUIREMENTS: Eligibility TYPE OF FINDING: Non-compliance and significant deficiency in internal controls over compliance. CRITERIA: In accordance with the OMB Compliance Supplement for 14.871, Eligibility, the PHA must retain tenant files for at least three years. (24 CFR section 982.158) CONDITION: We noted an instance where a tenant?s files were unable to be located. The tenant was participating in the program during the fiscal year under audit and therefore the PHA was required to retain files for them. CAUSE: The PHA discovered that the files for the tenant were missing and attempted to reach out to the client to reconstruct the file. The tenant decided to leave the program and the PHA was unable to reconstruct the file. EFFECT: The authority is in non-compliance with the requirements outlined in 24 CFR section 982.158. QUESTIONED COSTS: None. CONTEXT: The authority had approximately 152 tenants participating in the program during the fiscal year. Of these, we reviewed 40 tenant files and found 1 instance of non-compliance. We believe this to be an isolated instance and do not project any non-compliance to the rest of the population. RECOMMENDATION: We recommend that management implement monitoring procedures to ensure compliance with the above regulations as it relates to the Section 8 Housing Choice Voucher Program. VIEWS OF RESPONSIBLE OFFICIALS: Management agrees.

Corrective Action Plan

Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations. 1. Finding 2022 -001 a. Comments on the Finding and Each Recommendation: The Authority is in concurrence with the finding and recommendation provided by the Auditors. b. Action(s) Taken or Planned on the Finding The Authority has since implemented new policies regarding storage of tenant files which are designed to reduce the risk of the loss of files, and make it easier to retrieve files when needed.

Categories

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

Other Findings in this Audit

  • 638187 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.24M
14.872 Public Housing Capital Fund $195,292
14.850 Public and Indian Housing $147,264