Finding 961211 (2023-005)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-26

AI Summary

  • Core Issue: The PHA failed to maintain a clear audit trail for SEMAP reporting, particularly for Indicator 5, leading to potential inaccuracies in performance evaluation.
  • Impacted Requirements: Noncompliance with 24 CFR Part 985.3 affects the reliability of HUD's assessment of the PHA's Section 8 performance.
  • Recommended Follow-Up: PHA staff should receive training on SEMAP documentation and utilize their computer system to ensure accurate and complete reporting moving forward.

Finding Text

Finding 2023-005 – Special Tests and Provisions – SEMAP reporting ALN 14.871 – Noncompliance & Significant Deficiency Criteria: 24 CFR Part 985.3 states that PHAs “must leave a clear audit trail that can be used to verify that the PHA’s quality control sample was drawn in an unbiased manner.” Condition & cause: We noted during our review of the 2023 SEMAP submission and supporting documentation that the PHA did not maintain a clear audit trail to verify specific indicators. Specifically, there was no documentation to support Indicator 5 – HQS Quality Control Inspections maintained within the support. We also noted that although support was provided for indicators 2-4, it was not apparent that the review was conducted, as the spreadsheet used was not filled out. Lastly, as stated above, we noted a 13% error rate with our review of the HCV tenant files, but the Authority received a perfect score for Indicator 3 - Determination of Adjusted Income. Effect: The SEMAP certification provides HUD with a system to evaluate a PHA’s Section 8 performance. Failure to provide proper supporting documentation can lead to ineffective measurements of Authority performance, as well as its ability to meet the needs of eligible families. Furthermore, misleading SEMAP certifications can disguise a troubled agency who may need HUD intervention. Recommendation: We recommend that the PHA personnel obtain the appropriate training for SEMAP documentation and certification and appropriately document the SEMAP reports in future years. We also recommend that the PHA utilize the existing computer system to adequately document SEMAP on a regular basis.

Categories

HUD Housing Programs Reporting Significant Deficiency Special Tests & Provisions

Other Findings in this Audit

  • 384765 2023-002
    Material Weakness
  • 384766 2023-003
    Material Weakness
  • 384767 2023-003
    Material Weakness
  • 384768 2023-004
    Significant Deficiency
  • 384769 2023-005
    Significant Deficiency
  • 961207 2023-002
    Material Weakness
  • 961208 2023-003
    Material Weakness
  • 961209 2023-003
    Material Weakness
  • 961210 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $2.12M
14.850 Public and Indian Housing $2.04M