Finding 626707 (2022-002)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2022-12-05

AI Summary

  • Core Issue: Three Section 8 participant files lacked a lease, and one landlord form was signed late, violating HAP Contract requirements.
  • Impacted Requirements: This noncompliance breaches 24 CFR 982.451, which mandates proper lease documentation.
  • Recommended Follow-Up: The Housing Authority should enhance internal controls to ensure all Section 8 files meet HAP contract standards.

Finding Text

Criteria- The Part C of HAP Contract Tenancy Addendum 2) Lease states; The owner has given the PHA a copy of the Lease including any revisions agreed by the owner and tenant. Condition- The review of a sample of Section 8 participant files revealed noncompliance with HAP Contract, Part C of HAP Contract Tenancy Addendum. There was no lease on file for 3 of the Section 8 participants. Additionally, one of the participant's landlord forms was not signed until 3 months after the tenant move in date. Context- Condition was identified as part of the compliance testing for the major program. Effect- Noncompliance with 24 CFR 982.451 Housing Assistance Payments Contract. Cause- Internal Control failure in the file approval and preparation process. Recommendation- The Housing Authority should review the internal control policies in place to ensure all Section 8 participants are in compliance with the HAP contract. Repeat Finding from Prior Year(s)- No View of Responsible Officials- See management?s corrective action plan.

Categories

HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 50265 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $5.18M
14.872 Public Housing Capital Fund $373,986
14.850 Public and Indian Housing $190,220