Finding 635966 (2022-003)

-
Requirement
E
Questioned Costs
$1
Year
2022
Accepted
2023-09-28
Audit: 54678
Organization: New York City Housing Authority (NY)

AI Summary

  • Core Issue: Missing eligibility forms in 5 out of 60 case files hindered verification of participant eligibility for Public and Indian Housing.
  • Impacted Requirements: Compliance with federal eligibility documentation standards was not met, risking non-compliance status with HUD.
  • Recommended Follow-Up: Strengthen controls to ensure all required eligibility forms are collected, reviewed, and maintained in case files.

Finding Text

FINDING # 2022-003 ELIGIBILITY ? DEFICIENCY - COMPLIANCE PUBLIC AND INDIAN HOUSING (ALN # 14.850) CONTRACT #: NOT AVAILABLE FEDERAL AGENCY: PUBLIC AND INDIAN HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 1. CRITERIA Eligibility for Individuals - Most PHAs devise their own application forms that are filled out by the PHA staff during an interview with the tenant. The head of household signs (a) a certification that the information provided to the PHA is correct; (b) one or more release forms to allow the PHA to get information from third parties; (c) a federally prescribed general release form for employment information; and (d) a privacy notice. Under some circumstances, other members of the family may be required to sign these forms (24 CFR sections 5.212, 5.230, and 5.601 through 5.615). 2. CONDITION/PERSPECTIVE The Authority received funding from the Public and Indian Housing Operating Fund. The Public and Indian Housing program is to provide and operate cost effective, decent, safe, and affordable dwellings for lower income families through an authorized local PHA. Of the sixty (60) case files selected for testing in which 540 pieces of audit evidence (eligibility forms as noted in the Criteria section above) were requested to be provided: ? Five eligibility forms were not provided (3 missing application forms and 2 missing release forms). These forms are required documentation to be maintained in the case files to support eligibility for Public and Indian Housing. Therefore, we were not able to determine if the eligible participants met all the eligibility criteria. 3. CAUSE The Authority did not ensure that all required eligibility forms were obtained from the tenants and included in the case files timely. 4. EFFECT The Public and Indian Housing, U.S. Department of Housing and Urban Development may consider the Authority non-compliant with the eligibility requirements. 5. REPEAT FINDING No 6. RECOMMENDATION We recommend the Authority strengthen its controls over the Public and Indian Housing ? Operating Fund case files to ensure that all eligibility forms are received, reviewed, and maintained in the case files to support the determination of eligibility. 7. QUESTIONED COST Cannot be determined. 8. VIEWS OF RESPONSIBLE OFFICIAL In January 2011, NYCHA implemented the Siebel Customer Relationship Management (CRM) system, which included digital file storage and an online application process, which replaced our previous paper application process. Any applications in process from that date onward were subject to document scanning and documentation was stored digitally. Any applications processed prior to this date were kept in a paper format and stored at the development, where the applicant was certified or where the tenant resides. If a tenant family transferred to another development, the physical tenant folder and documents were sent to their new location. In June 2020, NYCHA sought to digitize all tenant folders; however, the cost of the project was determined to be prohibitive so the goal of digitizing the tenant folders was not realized. Any documents damaged or lost prior to 2011 cannot be recovered, including those impacted by Hurricane Sandy.

Categories

Questioned Costs Eligibility HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.45B
14.850 Public and Indian Housing $1.21B
14.872 Public Housing Capital Fund $596.93M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $231.40M
14.218 Community Development Block Grants/entitlement Grants $67.58M
97.036 Covid-19-Disaster Grants - Public Assistance (presidentially Declared Disasters) $27.87M
14.269 Hurricane Sandy Community Development Block Grant Disaster Recovery Grants (cdbg-Dr) $10.09M
14.879 Mainstream Vouchers $3.62M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $1.71M
14.888 Lead-Based Paint Capital Fund Program $751,837
14.GSA_MIGRATION Covid-19-Emergency Housing Vocuher $507,716
14.895 Jobs-Plus Pilot Initiative $370,470
14.870 Resident Opportunity and Supportive Services - Service Coordinators $247,656
14.896 Family Self-Sufficiency Program $242,541
97.039 Hazard Mitigation Grant $-546,699