Monticello Housing Authority

2021-003 – Documentation of Controls U.S. Department of Housing and Urban Development 14.871 – Section 8 Housing Choice Vouchers/Housing Voucher Cluster E. Eligibility and N. Special Tests and Provisions – Significant Deficiency Condition: During review of the Housing Choice Voucher program, RBT noted that the Authority was not appropriately documenting its controls over Eligibility, Reasonable Rent, Utility Allowance, and HQS Inspections. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority does not have a central, uniform location to document the controls in place over Eligibility, Reasonable Rent, Utility Allowance, and HQS Inspections. Effect: Potential noncompliance if a control is missed. Questioned Costs: None identified. Perspective: Although the Authority was in compliance with the noted compliance attributes, none of the 25 tenant files selected for testing contained documentation of the internal controls performed. Repeat Finding: Not a repeat finding. Recommendation: We recommend that the Authority establish a checklist for the Housing Choice Voucher Coordinator to use during the recertification process to document the procedures performed to ensure all compliance requirements are met. The checklist should be signed or initialed by the Coordinator and maintained in the tenant’s file. This checklist will serve as documentation that all compliance requirements were verified for the tenant. Auditee’s Response: See corrective action plan.

2019-002 Finding – (Housing Choice Voucher– (14.871)) During our review of special tests and provisions we determined that the Authority did not have a depository agreement on file with its financial institution. Criteria – Housing Authorities are required to enter into depository agreements with their financial institution using the HUD-51999 or a form required by HUD in the ACC. The agreements serve as safeguards for Federal funds and provide third-party rights to HUD. Effect of Condition – Lack of safeguards could put the Authority’s assets as risk. Cause of Condition – No such agreement could be found upon request. Recommendation – We recommend that the Authority have this agreement signed. PHA Response and Corrective Action Plan – The agreement will be completed and on file as the Authority has already contacted the financial institution to execute the agreement. PHA Contact and Resolution Date Rosalind Natale, March 31, 2020

2019-003 Finding – (Housing Choice Voucher– (14.871)) During our review of 40 Housing Choice Voucher tenant files, 1 file did not have an annual inspection. Criteria – HUD requires the Authority to inspect all units annually to ensure that the units continue to meet housing quality standards. Effect of Condition – If procedures are not followed, the awarding agency, may suspend or revoke federal funding. Cause of Condition – Policies and procedures were not followed. Recommendation – We recommend that the Authority implement procedures to ensure all units are inspected annually as prescribed by HUD. PHA Response and Corrective Action Plan – All files will be reviewed to ensure annual inspections are performed as required. PHA Contact and Resolution Date Rosalind Natale, March 31, 2020

2019-004 Finding – (Housing Choice Voucher– (14.871)) During our review of cost principles and allocation of costs it was noted that the Authority does not have a documented Cost Allocation Plan . Criteria – Cost allocation plans developed by the Authority should have sufficient documentation to substantiate the basis for how costs are allocated among the different programs and related parties. Effect of Condition – Due to the lack of full documentation to substantiate the basis for cost allocation, the amounts allocated among the programs and related parties could potentially be materially misstated. Cause of Condition – Cost allocation plans were developed without fully documenting procedures and methods used in determining allocation percentages. Recommendation – We recommend that the Authority document and adopt a plan that is in accordance with Appendix IV of the 2 CFR 200 regulation. PHA Response and Corrective Action Plan – The agreement will be completed and on file as the Authority has already presented it to the board. PHA Contact and Resolution Date Rosalind Natale, March 31, 2020