Finding 982193 (2023-005)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-07-01
Audit: 311405
Organization: Nambe Pueblo Housing Entity (NM)
Auditor: Sjt Group LLC

AI Summary

  • Core Issue: One homeowner exceeded income limits, and 19 lacked necessary documentation for financial hardship.
  • Impacted Requirements: NPHE failed to comply with HAF program eligibility criteria due to inadequate internal controls.
  • Recommended Follow-up: Develop and implement policies for better documentation and eligibility verification by July 2024.

Finding Text

2023-005 – Eligibility Federal Program Information: Funding Agency: U.S. Department of the Treasury Title: Homeowner Assistance Fund Program (HAF) Assistance Listing Number: 21.026 Award Period: October 1, 2022 – September 30, 2023 Criteria: To receive assistance under the HAF program, homeowners must have experienced a financial hardship after January 21, 2020 and have an income less equal to or less than 150% of the area median income or 100% of the median income for the United States, whichever is greater. Condition: During our assessment of 19 homeowners that received assistance, we found the following: • One homeowner had a household income greater than the income eligibility limits. The homeowner had a household income of 118% and 113% of the median incomes for the local area and United States, respectively. • 19 homeowners did not have an application and other documentation attesting to the financial hardship experienced. • One homeowner did not have documentation to support the income eligibility determination performed by the Entity. Questioned Costs: None Context: 19 out of 19 homeowners tested that received assistance under the HAF program. Cause and Effect: The Entity did not follow its internal controls for ensuring homeowners were appropriately screened for income eligibility and for ensuring adequate documentation was maintained to support all eligibility requirements were met by applicants. As a result, NPHE was not in compliance with the eligibility requirements of the HAF program. Auditors’ Recommendation: Improve internal controls to ensure all HAF program eligibility requirements are met and documented for all applicants. This includes developing policies and procedures for maintaining and retaining applications for assistance and other source documentation to support the eligibility determination process conducted. Management’s Response: Nambe Pueblo Housing Entity (NPHE) will develop comprehensive policies and procedures for maintaining and retaining applications for assistance, as well as all other source documentation necessary to support the eligibility determination process. This initiative aims to ensure accuracy, transparency, and compliance with regulatory requirements throughout the eligibility assessment. The enhanced documentation process will provide a robust framework to verify applicant eligibility, maintain records for auditing purposes, and improve overall operational efficiency. Responsible Party: Interim Executive Director Anticipated Completion: July 2024

Categories

Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

  • 405747 2023-003
    Significant Deficiency
  • 405748 2023-004
    Significant Deficiency
  • 405749 2023-003
    Significant Deficiency
  • 405750 2023-004
    Significant Deficiency
  • 405751 2023-005
    Significant Deficiency
  • 405752 2023-006
    Significant Deficiency
  • 982189 2023-003
    Significant Deficiency
  • 982190 2023-004
    Significant Deficiency
  • 982191 2023-003
    Significant Deficiency
  • 982192 2023-004
    Significant Deficiency
  • 982194 2023-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.862 Indian Community Development Block Grant Arp Grant Receivable $736,383
14.867 Indian Housing Block Grant 2021 Grant Receivable $491,843
14.867 Indian Housing Block Grant Receivable $457,317
14.862 Indian Community Development Block Grant 2022 Grant Receivable $440,199
21.026 Covid-19 Homeowner Assistance Fund $204,735
14.867 Indian Housing Block Grant Competative 2020 Grant Receivable $24,395