Housing Authority of the City of FranklinLocal Government

Finding 2021-001 U.S. Department of Housing and Urban Development Section 8 Housing Choice Vouchers - ALN 14.871 Eligibility Condition: During our review of 19 HUD-50058 Family Reports (HUD-50058), we noted three submissions that did not have the required income support in the tenant's file. The Authority did not have controls in place to ensure the required income support was maintained. Criteria: For both family income examinations and reexaminations, the Authority is to obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). Cause: During the year, the Authority experienced turnover within several key positions, including the Housing Choice Voucher Department Director, coupled with other logistical staffing challenges brought on by the COVID-19 pandemic. Effect: The Authority had three HUD-50058 where the income was not adequately verified. The data collected on HUD-50058 provides HUD with a picture of the people who participate in subsidized housing programs. The PIC system captures this information and creates reports used to analyze the subsidized housing programs, monitor PHAs, detect fraud, and provide information to Congress and other interested parties. Questioned Costs: Unknown Recommendation: We recommend that the Authority implement additional procedures to ensure all required income verification is obtained when completing HUD-50058, and to the extent they are not, that action be taken to resolve any issues, and that this action be documented. In addition, appropriate training and planning should be performed to ensure that future turnover in the organization does not lead to a lapse in internal controls over compliance. Views of responsible officials and planned corrective action: Management agrees with the finding. See separate corrective action plan.

Finding 2021-002 U.S. Department of Housing and Urban Development Section 8 Housing Choice Vouchers - ALN 14.871 Special Tests and Provisions Condition: During our review of 13 tenant files, we noted one tenant who was not being charged the set minimum rent. The Authority did not have controls in place to ensure that tenants were being charged at least the set minimum rent. Criteria: The Authority is required to determine that the rent to owner is reasonable at the time of initial leasing, before any increase in the rent to owner is approved, and at the HAP contract anniversary if there is a five percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The Authority must maintain records to document that basis for the determination that rent to owner is a reasonable rent (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Cause: During the year, the Authority experienced turnover within several key positions, including the Housing Choice Voucher Department Director, coupled with other logistical staffing challenges brought on by the COVID-19 pandemic. Effect: The Authority had one files where the rent reasonableness was not determined accurately. Questioned Costs: Unknown Recommendation: We recommend that the Authority implement additional procedures to ensure that the Authority enforce their minimum set rent, and to the extent they are not, that action be taken to resolve any issues, and that this action be documented. In addition, appropriate training and planning should be performed to ensure that future turnover in the organization does not lead to a lapse in internal controls over compliance. Views of responsible officials and planned corrective action: Management agrees with the finding. See separate corrective action plan.

GSA_MIGRATION