Finding 622966 (2022-001)

Material Weakness Repeat Finding
Requirement
EN
Questioned Costs
-
Year
2022
Accepted
2023-06-29

AI Summary

  • Core Issue: The Authority has a material weakness in tenant recertification for the Low Rent Public Housing Program, with multiple missing documents and non-compliance noted from the previous year.
  • Impacted Requirements: Compliance with 24CFR sections 5.230, 5.609, and 960.259 is not being met, risking the admission of ineligible individuals and incorrect rent calculations.
  • Recommended Follow-Up: Implement stronger controls and procedures, including staff retraining and collaboration with HUD for improved tenant file management.

Finding Text

Finding 2022-001 Low Rent Public Housing (CFDA#14.850) Type of Deficiency: Material Weakness Compliance Requirement: Eligibility and Special Tests We selected forty files for the Low Rent Public Housing Program. 10 of the files were missing the EIV, and two were not recertified, 2 had no 9886 form, 2 had no evidence of choice of flat rent given and 1 had no 50058 form. Cause: The Authority did not implement the proper controls to ensure that all tenants are properly recertified each year. Condition: The Authority did not follow the compliance requirements of 24CFR sections 5.230, 5.609 and 960.259. This was condition was noted as a finding the prior year audit report. Effect of Condition: The effect of not complying with the requirements in the Compliance Supplement may result in ineligible individuals being admitted to the program and improper rent calculations. Recommendation: We recommend that the Authority adopt controls and procedures to ensure compliance with the requirements of the Low Rent Public Housing Program. Questioned Costs -$0- Response: The following steps have been and are being taken regarding tenant certifications: 1. After contracting a third-party entity to review 10% of our files in Oct 2022, the findings of said review led to the recommendation to retrain staff. 2. All Managers and assistant Managers received HCV & PH Rent Calculation Training In June 2023. 3. We are also currently working with our TA from HUD, Ms. Valerie Jackson. Ms. Jackson has identified and is about to roll out training for our staff, to uniform and streamline our tenant files.

Categories

Eligibility HUD Housing Programs Material Weakness

Other Findings in this Audit

  • 46524 2022-001
    Material Weakness Repeat
  • 46525 2022-002
    Material Weakness
  • 622967 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $7.40M
14.871 Section 8 Housing Choice Vouchers $4.78M
14.872 Public Housing Capital Fund $3.97M
14.269 Hurricane Sandy Community Development Block Grant Disaster Recovery Grants (cdbg-Dr) $3.53M
14.U01 Public Housing Cares Act Funding $469,571
14.218 Community Development Block Grants/entitlement Grants $96,656
14.U02 Housing Choice Voucher Cares Act Funding $64,621