Finding 8006 (2023-001)

Significant Deficiency Repeat Finding
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2024-01-09
Audit: 10477

AI Summary

  • Core Issue: The Authority failed to comply with eligibility requirements for the Homeowner Assistance Fund, leading to significant deficiencies in applicant assessments.
  • Impacted Requirements: Key criteria include confirming primary residence occupancy, verifying income below 150% of the area median, and documenting financial hardship.
  • Recommended Follow-Up: Strengthen policies and procedures for eligibility determination to ensure compliance with federal guidelines and prevent future issues.

Finding Text

Finding 2023-001 Eligibility (Significant Deficiency and Noncompliance) Information of the Federal Program: U.S. Department of Treasury CFDA No. 21.026 Homeowner Assistance Fund Criteria: Treasury established a number of requirements in this program to determine whether an applicant is eligible to receive mortgage assistance. To be an eligible household: must be the homeowners primary residence, they must currently occupy the residence, income must be below 150% of the area median income for the household, and experienced financial hardship due to the pandemic. Condition: The eligibility determination is made based on a collection of information and documentation from the applicant. These files document their circumstances and determine the amount awarded. Context/Cause: We tested 53 households paid during the fiscal year. Of those 53, we noted 19 households with one or more exceptions, totaling 25 exceptions out of a total of 583 requirements tested and summarized as follows:  6 instances in which an initial occupancy statement was obtained with the application but occupancy was not confirmed prior to disbursement  3 instances in which the applicant is above the 150% area median income level  13 instances in which income was not properly documented or the calculation of income by the underwriter was not correct  2 instances in which the monthly mortgage assistance awarded to households was not properly supported Questioned Costs: $31,755 Effect: The Authority was not in compliance with eligibility requirements. Recommendation: We recommend the Authority strengthen its policies and procedures surrounding eligibility determination to ensure compliance with federal requirements. View of Responsible Officials: See Management’s review and Corrective Action Plan included at the end of the report.

Corrective Action Plan

Management agrees with the summarized findings. Management has reviewed the current policies and procedures to ensure that the steps to be performed are clearly stated for the underwriting and disbursement staff. Management has discussed the findings with staff members and will provide additional training as deemed necessary.

Categories

Questioned Costs Eligibility Significant Deficiency

Other Findings in this Audit

  • 584448 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.023 Emergency Rental Assistance Program $77.16M
21.026 Homeowner Assistance Fund $48.75M
14.239 Home Investment Partnerships Program $19.27M
14.275 Housing Trust Fund $1.34M