Finding 636384 (2022-002)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-06-27

AI Summary

  • Core Issue: Tenant files for the Continuum of Care program are not maintained properly, leading to compliance failures.
  • Impacted Requirements: Noncompliance with federal regulations and internal policies regarding tenant file documentation.
  • Recommended Follow-Up: Conduct a comprehensive audit of tenant files and enhance monitoring and training for staff to ensure compliance.

Finding Text

Finding 2022-002 ? Continuum of Care Tenant Files ? Eligibility ? Internal Control over Tenant Files ? Noncompliance and Material Weakness - ALN 14.267 Continuum of Care Program ? Subsidy Condition & Cause: We selected a sample of five (5) files for review. We noted that these tenant files were constructed for the purpose of the audit. We requested an additional sample of four (4) tenant files, and we discovered that the tenant files are not maintained contemporaneously. Of the additional sample, staff was able to locate files current through 2019 for two (2) of the tenants and was able to verify that 2021 and 2022 annual recertifications were completed in their software for three (3) of the tenants. Staff was unable to furnish the annual recertification documentation for these actions. A second review 30 days later revealed that the deficiency had not been corrected. We requested a new sample of ten (10) tenant files. Staff was unable to provide any of the tenant files in a timely manner. We reviewed the tenant ledgers and noted three (3) tenants who had ended participation but remained on the HAP register, and one (1) tenant whose ledger revealed a discrepancy with the HAP register. Criteria: The Code of Federal Regulations 24 part 578, the Housing Authority?s Admin Plan, and specific HUD guidelines in documenting and maintaining the Continuum of Care tenant files. Effect: The failure to properly document and retain tenant files can result in loss of grant funding earned by the Housing Authority. Recommendation: We recommend that the Agency conduct a thorough tenant file audit of existing tenants in the Continuum of Care program and maintain these records contemporaneously. We also recommend that the Agency increase their monitoring and review of the Continuum of Care program files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. Questioned Costs: None. Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.

Categories

HUD Housing Programs Subrecipient Monitoring Eligibility Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 59941 2022-001
    Significant Deficiency
  • 59942 2022-002
    Material Weakness
  • 636383 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $4.23M
14.871 Section 8 Housing Choice Vouchers $4.06M
14.872 Public Housing Capital Fund $1.63M
14.267 Continuum of Care Program $827,762
14.241 Housing Opportunities for Persons with Aids $484,321
14.182 Section 8 New Construction and Substantial Rehabilitation $331,176
14.879 Mainstream Vouchers $200,554
14.896 Family Self-Sufficiency Program $200,260
14.871 Ehv - Section 8 Housing Choice Vouchers $189,783
90.U19 Covid-19 - Housing Stability Counseling Program - Cares Act $77,985
14.169 Housing Counseling Assistance Program $34,280
97.024 Emergency Food and Shelter National Board Program $28,454