EIN: 546002277
UEI: PDKBNSKLXC85
Data as of August 25, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 30, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by March 30, 2026 (149 days ago).
What is a management decision? →Based upon discussions with management and review of invoices selected for cash disbursement testing, there were two (2) vendors in which there was a conflict of interest violating Section 19 of the ACC. Context: As part of the cash disbursements testing, we selected a sample of invoices that were paid during the audit period. Based on review of those invoices, there were two (2) vendors in which there was a conflict of interest violating Section 19 of the ACC. Known Questioned Costs: $78,716 Cause: The Authority did not comply with Section 19 of the ACC as it relates to conflicts of interest for the Public and Indian Housing program. Effect: The Authority's non-compliance with Section 19 of the ACC as it relates to conflicts of interest for the Public and Indian Housing program. Recommendation: We recommend the Authority update their Personnel Policy to include conflicts of interest as described in Section 19 of the ACC and design and implement internal control procedures that will reasonably assure compliance with Section 19 of the ACC as it related to conflicts of interest.
Show full finding ▾Hide full finding ▴authority over the Authority to perform their duties in an ethical manner. As such, HUD's programs contain specific prohibitions with respect to conflicts of interest. Per Section 19 of the Annual Contributions Contract ("ACC") for the Public and Indian Housing program, neither the Authority nor any of its contractors or their subcontractors may enter into any contract subcontract, or arrangement in connection with a project under this ACC in which any of the following classes of people have an interest, direct or indirect, during his or her tenure or for one year thereafter: 1. Any present or former member or office of the governing body of the Authority, or any member of the officer's immediate family. 2. Any employee of the Authority who formulates policy or who influences decisions with respect to the projects, or any member of the employee's immediate family, or the employee's partner. 3. Any public official, member of the local governing body, or State or local legislator, who exercises functions or responsibilities with respect to the projects or the HA. In addition, any member of these classes of persons must disclose the member's interest or prospective interest to the Authority and HUD. The term "immediate family" means the spouse, mother, father, brother, sister, or child of a covered class member. Condition: Based upon discussions with management and review of invoices selected for cash disbursement testing, there were two (2) vendors in which there was a conflict of interest violating Section 19 of the ACC. Context: As part of the cash disbursements testing, we selected a sample of invoices that were paid during the audit period. Based on review of those invoices, there were two (2) vendors in which there was a conflict of interest violating Section 19 of the ACC. Known Questioned Costs: $78,716 Cause: The Authority did not comply with Section 19 of the ACC as it relates to conflicts of interest for the Public and Indian Housing program. Effect: The Authority's non-compliance with Section 19 of the ACC as it relates to conflicts of interest for the Public and Indian Housing program. Recommendation: We recommend the Authority update their Personnel Policy to include conflicts of interest as described in Section 19 of the ACC and design and implement internal control procedures that will reasonably assure compliance with Section 19 of the ACC as it related to conflicts of interest.
Authority's Response and Planned Corrective Action: Management agrees with the Auditors' finding and will implement the required updates and safeguards to ensure that the Authority complies with Section 19 of the ACC to remedy the aforementioned deficiencies. Donald Paredez, Executive Director, is responsible for implementing this corrective action by December 31, 2025.
2023-002
Based upon inspection of the Authority's files and on discussion with management, the Authority included income that was outdated during their annual reexamination. Context: There are approximately one thousand five hundred twenty six (1,526) units. Of a sample size of twenty eight (28) tenant files, two (2) tenants' annual recertification (HUD-50058 form) included income that was outdated. Our sample size is statistically valid. Known Questioned Costs: Amount is below threshold of $25,000. Cause: There is a significant deficiency in internal controls over the compliance for the reporting type of compliance related to special reporting. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Housing Voucher Cluster is in non-compliance with the reporting type of compliance related to special reporting. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs Federal Catalog Numbers: 14.871 and 14.879 Noncompliance – L. Reporting - Special Reporting Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Reporting Criteria: Special Reporting. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority's files and on discussion with management, the Authority included income that was outdated during their annual reexamination. Context: There are approximately one thousand five hundred twenty six (1,526) units. Of a sample size of twenty eight (28) tenant files, two (2) tenants' annual recertification (HUD-50058 form) included income that was outdated. Our sample size is statistically valid. Known Questioned Costs: Amount is below threshold of $25,000. Cause: There is a significant deficiency in internal controls over the compliance for the reporting type of compliance related to special reporting. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Housing Voucher Cluster is in non-compliance with the reporting type of compliance related to special reporting. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement.
Authority's Response and Planned Corrective Action: Management agrees with the recommendation of the auditor. The Authority will increase oversight in the Housing Voucher Cluster to ensure that established internal control policies are being followed accurately and on a timely basis. Donald Paredez, Executive Director, is responsible for implementing this corrective action by December 31, 2025.
2023-003
Based upon inspection of the Authority’s files and on discussion with management, there were units that were not inspected within the biennial inspection period of two (2) years. Additionally, there were units that failed inspections that did not pass reinspection within 30 days without penalty. Context: There are approximately one thousand five hundred twenty six (1,526) units. Of a sample size of twenty eight (28) files, one (1) biennial inspection, was not completed in a timely manner. Additionally, there are approximately two hundred eighteen (218) units with failed inspections. Of a sample size of twenty two (22) units with failed inspections, two (2) units did not pass reinspection within 30 days. Housing assistance payments were not abated nor was the tenant relocated. Our sample size is statistically valid. Known Questioned Costs: Amount is below threshold of $25,000. Cause: There is a significant deficiency for the Housing Voucher Cluster in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly performed biennial HQS inspections in compliance with program requirements. Effect: The Housing Voucher Cluster is in non-compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs Federal Catalog Numbers: 14.871 and 14.879 Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets the Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were units that were not inspected within the biennial inspection period of two (2) years. Additionally, there were units that failed inspections that did not pass reinspection within 30 days without penalty. Context: There are approximately one thousand five hundred twenty six (1,526) units. Of a sample size of twenty eight (28) files, one (1) biennial inspection, was not completed in a timely manner. Additionally, there are approximately two hundred eighteen (218) units with failed inspections. Of a sample size of twenty two (22) units with failed inspections, two (2) units did not pass reinspection within 30 days. Housing assistance payments were not abated nor was the tenant relocated. Our sample size is statistically valid. Known Questioned Costs: Amount is below threshold of $25,000. Cause: There is a significant deficiency for the Housing Voucher Cluster in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly performed biennial HQS inspections in compliance with program requirements. Effect: The Housing Voucher Cluster is in non-compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.
Authority's Response and Planned Corrective Action: Management agrees with the recommendation of the auditor. The Authority will increase oversight in the Housing Voucher Cluster to ensure that established internal control policies related to HQS inspections are being followed on a timely basis. Donald Paredez, Executive Director, is responsible for implementing this corrective action by December 31, 2025.
2023-004
Based upon inspection of the waiting list provided to us during the time of audit, the new move-in list and discussions with management, it could not be determined with any certainty that certain new move-ins to the Housing Voucher Cluster programs were either selected from the wait list in an order or housed through the special admission criteria that is in accordance with the Authority’s Section 8 Administrative Plan Context: There are approximately thirty eight (38) new move-ins. Of a sample size of four (4) files, one (1) move-in could not be determined to be housed in proper order from the Authority's wait list or housed through the special admission criteria. Our sample size is statistically valid. Known Questioned Costs: Amount is below threshold of $25,000. Cause: There is a significant deficiency for the Housing Voucher Cluster in internal controls over the compliance for the special tests and provisions type of compliance related to selection from the waiting list. The Authority has not properly housed applicants in compliance with program requirements. Effect: The Housing Voucher Cluster is in non-compliance with the special tests and provisions type of compliance related to selection from the waiting list. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs Federal Catalog Numbers: 14.871 and 14.879 Noncompliance – N. Special Tests and Provisions - Selection from the Waiting List Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Selection from the Waiting List. The PHA must have written policies in its Section 8 Administrative Plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants from the waiting list. Except for as provided in 24 CFR section 982.203 (Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: Based upon inspection of the waiting list provided to us during the time of audit, the new move-in list and discussions with management, it could not be determined with any certainty that certain new move-ins to the Housing Voucher Cluster programs were either selected from the wait list in an order or housed through the special admission criteria that is in accordance with the Authority’s Section 8 Administrative Plan Context: There are approximately thirty eight (38) new move-ins. Of a sample size of four (4) files, one (1) move-in could not be determined to be housed in proper order from the Authority's wait list or housed through the special admission criteria. Our sample size is statistically valid. Known Questioned Costs: Amount is below threshold of $25,000. Cause: There is a significant deficiency for the Housing Voucher Cluster in internal controls over the compliance for the special tests and provisions type of compliance related to selection from the waiting list. The Authority has not properly housed applicants in compliance with program requirements. Effect: The Housing Voucher Cluster is in non-compliance with the special tests and provisions type of compliance related to selection from the waiting list. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.
Authority's Response and Planned Corrective Action: Management agrees with the recommendation of the auditor. The Authority will increase oversight in the Housing Voucher Cluster to ensure that established internal control policies related to selection from the waiting list are being documented and followed on a timely basis. Donald Paredez, Executive Director, is responsible for implementing this corrective action by December 31, 2025.
FAC accepted this audit on October 8, 2024 — management decision was due April 8, 2025.
Based upon discussions with management and review of invoices selected for cash disbursement testing, there were three (3) vendors in which there was a conflict of interest violating Section 19 of the ACC. Context: As part of the cash disbursements testing, we selected a sample of invoices that were paid during the audit period. Based on review of those invoices, there were three (3) vendors in which there was a conflict of interest violating Section 19 of the ACC. Known Questioned Costs: $333,390 Cause: The Authority did not comply with Section 19 of the ACC as it relates to conflicts of interest for the Public and Indian Housing program. Effect: The Authority's non-compliance with Section 19 of the ACC as it relates to conflicts of interest for the Public and Indian Housing program. Recommendation: We recommend the Authority update their Personnel Policy to include conflicts of interest as described in Section 19 of the ACC and design and implement internal control procedures that will reasonably assure compliance with Section 19 of the ACC as it related to conflicts of interest.
Show full finding ▾Hide full finding ▴Criteria: HUD requires Authority employees, the Authority Board, and public officials that exercise authority over the Authority to perform their duties in an ethical manner. As such, HUD's programs contain specific prohibitions with respect to conflicts of interest. Per Section 19 of the Annual Contributions Contract ("ACC") for the Public and Indian Housing program, neither the Authority nor any of its contractors or their subcontractors may enter into any contract subcontract, or arrangement in connection with a project under this ACC in which any of the following classes of people have an interest, direct or indirect, during his or her tenure or for one year thereafter: 1. Any present or former member or office of the governing body of the Authority, or any member of the officer's immediate family. 2. Any employee of the Authority who formulates policy or who influences decisions with respect to the projects, or any member of the employee's immediate family, or the employee's partner. 3. Any public official, member of the local governing body, or State or local legislator, who exercises functions or responsibilities with respect to the projects or the HA. In addition, any member of these classes of persons must disclose the member's interest or prospective interest to the Authority and HUD. The term "immediate family" means the spouse, mother, father, brother, sister, or child of a covered class member. Condition: Based upon discussions with management and review of invoices selected for cash disbursement testing, there were three (3) vendors in which there was a conflict of interest violating Section 19 of the ACC. Context: As part of the cash disbursements testing, we selected a sample of invoices that were paid during the audit period. Based on review of those invoices, there were three (3) vendors in which there was a conflict of interest violating Section 19 of the ACC. Known Questioned Costs: $333,390 Cause: The Authority did not comply with Section 19 of the ACC as it relates to conflicts of interest for the Public and Indian Housing program. Effect: The Authority's non-compliance with Section 19 of the ACC as it relates to conflicts of interest for the Public and Indian Housing program. Recommendation: We recommend the Authority update their Personnel Policy to include conflicts of interest as described in Section 19 of the ACC and design and implement internal control procedures that will reasonably assure compliance with Section 19 of the ACC as it related to conflicts of interest.
Authority Response and Planned Corrective Action: Management agrees with the Auditors' finding and will implement the required updates and safeguards to ensure that the Authority complies with Section 19 of the ACC to remedy the aforementioned deficiencies. Donald Paredez, Executive Director, is responsible for implementing this corrective action by December 31, 2024.
2022-003
Based upon inspection of the Authority's files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: Of a sample size of twenty seven (27) tenant files, the Authority could not provide verification of income for (2) tenants. Our sample size is statistically valid. Known Questioned Costs: $20,616 Cause: There is a material weakness in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers program is in material non-compliance with the eligibility type of compliance related to maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement.
Show full finding ▾Hide full finding ▴Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Catalog Numbers: 14.871 and 14.879 Noncompliance – E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority's files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: Of a sample size of twenty seven (27) tenant files, the Authority could not provide verification of income for (2) tenants. Our sample size is statistically valid. Known Questioned Costs: $20,616 Cause: There is a material weakness in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers program is in material non-compliance with the eligibility type of compliance related to maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement.
Authority Response and Planned Corrective Action: The Authority agrees with the finding and will increase oversight related to the maintenance of tenant files to better monitor adequacy with compliance requirements. Donald Paredez, Executive Director, is responsible for implementing this corrective action by December 31, 2024.
Based upon inspection of the Authority’s files and on discussion with management, there were units that were not inspected within the biennial inspection period of two (2) years. Additionally, there were units that failed inspections that did not pass reinspection within 30 days without penalty. Context: There are approximately one thousand four hundred and twenty five (1,425) Section 8 Housing Choice Vouchers' units and ninety nine (99) Mainstream Vouchers' units. Of a samples size of twenty seven (27) Section 8 Housing Choice Vouchers' files and ten (10) Mainstream Vouchers' files, two (2) and one (1) biennial inspections, respectively, were not completed in a timely manner. Additionally, there are approximately two hundred and twelve (212) Section 8 Housing Choice Vouchers' units and fifteen (15) Mainstream Vouchers' units with failed inspections. Of a sample size of twenty one (21) Section 8 Housing Choice Vouchers' failed inspections and two (2) Mainstream Vouchers' failed inspections, ten (10) and one (1) failed inspections, respectively, did not pass reinspection within 30 days. Housing assistance payments were not abated nor was the tenant relocated. Our sample size is statistically valid. Known Questioned Costs: $5,324 Cause: There is a material weakness for the Section 8 Housing Choice Vouchers and Mainstream Vouchers programs in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly performed biennial HQS inspections in compliance with program requirements. Effect: The Section 8 Housing Choice Vouchers and Mainstream Vouchers program is in material non-compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs Federal Assistance Listing Numbers: 14.871 and 14.879 Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets the Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were units that were not inspected within the biennial inspection period of two (2) years. Additionally, there were units that failed inspections that did not pass reinspection within 30 days without penalty. Context: There are approximately one thousand four hundred and twenty five (1,425) Section 8 Housing Choice Vouchers' units and ninety nine (99) Mainstream Vouchers' units. Of a samples size of twenty seven (27) Section 8 Housing Choice Vouchers' files and ten (10) Mainstream Vouchers' files, two (2) and one (1) biennial inspections, respectively, were not completed in a timely manner. Additionally, there are approximately two hundred and twelve (212) Section 8 Housing Choice Vouchers' units and fifteen (15) Mainstream Vouchers' units with failed inspections. Of a sample size of twenty one (21) Section 8 Housing Choice Vouchers' failed inspections and two (2) Mainstream Vouchers' failed inspections, ten (10) and one (1) failed inspections, respectively, did not pass reinspection within 30 days. Housing assistance payments were not abated nor was the tenant relocated. Our sample size is statistically valid. Known Questioned Costs: $5,324 Cause: There is a material weakness for the Section 8 Housing Choice Vouchers and Mainstream Vouchers programs in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly performed biennial HQS inspections in compliance with program requirements. Effect: The Section 8 Housing Choice Vouchers and Mainstream Vouchers program is in material non-compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.
Authority Response and Planned Corrective Action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Vouchers and Mainstream Vouchers programs to ensure that established internal control policies related to HQS inspections are being followed on a timely basis. Donald Paredez, Executive Director, is responsible for implementing this corrective action by December 31, 2024.
2022-006
Based upon inspection of the Authority’s files and on discussion with management, there were projects for which contracts were entered into for which the Authority did not properly document the wage rate requirements. Context: Based upon the Authority's contract log and discussions with management, there were two (2) vendors who were awarded contracts for projects utilizing Capital Funds in excess of $2,000. Of a sample size of one (1) contract, the one (1) contracts' documentation did not contain the required wage rate requirements. Our sample size is statistically valid. Cause: There is a significant deficiency for the Public Housing Capital Fund program in internal controls over the compliance for the special tests and provisions type of compliance related to wage rate requirements. The Authority has not properly documented the wage rate requirements in compliance with program requirements. Effect: The Public Housing Capital Fund program is in non-compliance with the special tests and provisions type of compliance related to wage rate requirements. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public Housing Capital Fund Program Federal Assistance Listing Numbers: 14.872 Noncompliance – N. Special Tests and Provisions - Wage Rate Requirements Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Wage Rate Requirements. Projects funded with Capital Funds that are developed and/or modernized in accordance with 24 CFR Part 905, Subpart F, including projects that contain only public housing units and mixed finance projects are subject to the Wage Rate Requirements (42 USC 1437J(a) and (b); 24CFR section 905.308). Davis-Bacon wage rates. For all work or contracts exceeding $2,000 in connection with development activities or modernization activities (except for nonroutine maintenance work, as defined in § 905.200(b)(5) of this part), all laborers and mechanics employed on the construction, alteration, or repair shall be paid not less than the wages prevailing in the locality, as determined by the Secretary of Labor pursuant to the Davis-Bacon Act (40 U.S.C. 3142). Condition: Based upon inspection of the Authority’s files and on discussion with management, there were projects for which contracts were entered into for which the Authority did not properly document the wage rate requirements. Context: Based upon the Authority's contract log and discussions with management, there were two (2) vendors who were awarded contracts for projects utilizing Capital Funds in excess of $2,000. Of a sample size of one (1) contract, the one (1) contracts' documentation did not contain the required wage rate requirements. Our sample size is statistically valid. Cause: There is a significant deficiency for the Public Housing Capital Fund program in internal controls over the compliance for the special tests and provisions type of compliance related to wage rate requirements. The Authority has not properly documented the wage rate requirements in compliance with program requirements. Effect: The Public Housing Capital Fund program is in non-compliance with the special tests and provisions type of compliance related to wage rate requirements. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.
Authority Response and Planned Corrective Action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Public Housing Capital Fund program to ensure that established internal control policies related to wage rate requirements are being followed. Donald Paredez, Executive Director, is responsible for implementing this corrective action by December 31, 2024.
FAC accepted this audit on March 27, 2024 — management decision was due September 27, 2024.
Based upon inspection of the waiting list provided to us during the time of audit, the new move-in list and discussions with management, it could not be determined with any certainty that certain new move-ins to the Section 8 Housing Choice Vouchers and Mainstream Vouchers programs were selected from the wait list in an order that is in accordance with the Authority’s Section 8 Administration policy. Context: Of a sample size of forty (40) Section 8 Housing Choice Vouchers' new move-ins and eight (8) Mainstream Vouchers' new move-ins, twenty-two (22) and one (1), respectively, could not be traced to the Authority's waiting lists. Our sample size is statistically valid. Known Questioned Costs: Section 8 Housing Choice Vouchers $98,464 Mainstream Vouchers $4,104 Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs are in material non-compliance with the special tests and provisions type of compliance related to selection of applicants from the waiting list. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs Federal Catalog Numbers: 14.871 and 14.879 Noncompliance – N. Special Tests and Provisions – Waiting List Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: Selections from the Waiting List. The PHA must have written policies in its Section 8 Housing Choice Vouchers Program administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants from the waiting list. Except for as provided in 24 CFR section 982.203 (Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: Based upon inspection of the waiting list provided to us during the time of audit, the new move-in list and discussions with management, it could not be determined with any certainty that certain new move-ins to the Section 8 Housing Choice Vouchers and Mainstream Vouchers programs were selected from the wait list in an order that is in accordance with the Authority’s Section 8 Administration policy. Context: Of a sample size of forty (40) Section 8 Housing Choice Vouchers' new move-ins and eight (8) Mainstream Vouchers' new move-ins, twenty-two (22) and one (1), respectively, could not be traced to the Authority's waiting lists. Our sample size is statistically valid. Known Questioned Costs: Section 8 Housing Choice Vouchers $98,464 Mainstream Vouchers $4,104 Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs are in material non-compliance with the special tests and provisions type of compliance related to selection of applicants from the waiting list. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement.
Views of responsible officials and planned corrective action: The Authority agrees with the finding and will increase oversight on the maintenance of the waiting list and process of housing applicants to better monitor adequacy with compliance requirements. Amy Barts, Director of Housing, is responsible for implementing this corrective action by December 31, 2023.
2021-002
Based upon inspection of the Authority’s files and on discussion with management, there were failed inspections that did not pass reinspection within 30 days without penalty. Context: There are approximately two hundred and fifty-four (254) Section 8 Housing Choice Vouchers' units and fifteen (15) Mainstream Vouchers' units with failed inspections. Of a sample size of twenty-five (25) Section 8 Housing Choice Vouchers' and two (2) Mainstream Vouchers' failed inspections, seven (7) and one (1) failed inspections, respectively, did not pass reinspection within 30 days. Housing assistance payments were not abated nor was the tenant relocated. Our sample size is statistically valid. Known Questioned Costs: Section 8 Housing Choice Vouchers $4,901 Mainstream Vouchers $460 Cause: There is a significant deficiency for the Section 8 Housing Choice Vouchers Program and a material weakness for the Mainstream Vouchers Program in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly performed HQS inspections in compliance with program requirements. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance and the Mainstream Vouchers Program is in material non-compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs Federal Assistance Listing Numbers: 14.871 and 14.879 Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: Yes Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions for the Section 8 Housing Choice Vouchers Program Material Weakness in Internal Control over Compliance for Special Tests and Provisions for the Mainstream Vouchers Program Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets the Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were failed inspections that did not pass reinspection within 30 days without penalty. Context: There are approximately two hundred and fifty-four (254) Section 8 Housing Choice Vouchers' units and fifteen (15) Mainstream Vouchers' units with failed inspections. Of a sample size of twenty-five (25) Section 8 Housing Choice Vouchers' and two (2) Mainstream Vouchers' failed inspections, seven (7) and one (1) failed inspections, respectively, did not pass reinspection within 30 days. Housing assistance payments were not abated nor was the tenant relocated. Our sample size is statistically valid. Known Questioned Costs: Section 8 Housing Choice Vouchers $4,901 Mainstream Vouchers $460 Cause: There is a significant deficiency for the Section 8 Housing Choice Vouchers Program and a material weakness for the Mainstream Vouchers Program in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly performed HQS inspections in compliance with program requirements. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance and the Mainstream Vouchers Program is in material non-compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.
Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs to ensure that established internal control policies related to HQS inspections are being followed on a timely basis. Amy Barts, Director of Housing, is responsible for implementing this corrective action by December 31, 2023.
FAC accepted this audit on April 26, 2023 — management decision was due October 26, 2023.
Based upon inspection of the waiting list provided to us during the time of audit, the new move-in list and discussions with management, it could not be determined with any certainty that certain new move-ins to the Section 8 Housing Choice Vouchers program were selected from the wait list in an order that is in accordance with the Authority?s Section 8 Administration policy. Context: Of a sample size of eighteen (18) new move-ins, one (1) could not be traced to the Authority's waiting list. Our sample size is statistically valid. Known Questioned Costs: $4,986 Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers program is in non-compliance with the special tests and provisions type of compliance related to selection of applicants from the waiting list. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. Authority Response: The Authority agrees with the finding and will increase oversight on the maintenance of the waiting list and process of housing applicants to better monitor adequacy with compliance requirements.
Show full finding ▾Hide full finding ▴Finding 2021-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Catalog Numbers: 14.871 Noncompliance ? N. Special Tests and Provisions ? Waiting List Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Selections from the Waiting List. The PHA must have written policies in its Section 8 Housing Choice Vouchers Program administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants from the waiting list. Except for as provided in 24 CFR section 982.203 (Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. ?Selection? from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: Based upon inspection of the waiting list provided to us during the time of audit, the new move-in list and discussions with management, it could not be determined with any certainty that certain new move-ins to the Section 8 Housing Choice Vouchers program were selected from the wait list in an order that is in accordance with the Authority?s Section 8 Administration policy. Context: Of a sample size of eighteen (18) new move-ins, one (1) could not be traced to the Authority's waiting list. Our sample size is statistically valid. Known Questioned Costs: $4,986 Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers program is in non-compliance with the special tests and provisions type of compliance related to selection of applicants from the waiting list. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. Authority Response: The Authority agrees with the finding and will increase oversight on the maintenance of the waiting list and process of housing applicants to better monitor adequacy with compliance requirements.
Views of responsible officials and planned corrective action: The Authority agrees with the finding will be increase oversight on the maintenance of the waiting list and process of housing applicants to better monitor adequacy with compliance requirements. Larissa Deedrich, Executive Director, is responsible for implementing this corrective action by December 31, 2022.
FAC accepted this audit on February 7, 2023 — management decision was due August 7, 2023.
Based upon inspection of the Authority?s files and on discussion with management there were a significant number of documents that were unavailable for examination at the time of audit. Context: Of a sample size of thirty five (35) tenant files, the following information was unavailable for examination at the time of audit: ? Verification of income was missing in two (2) files Our sample size is statistically valid. Known Questioned Costs: $9,966 Cause: There is a material weakness in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers Program is in material non-compliance with the eligibility type of compliance related to the maintenance of tenant files.
Show full finding ▾Hide full finding ▴Finding 2020-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Catalog Numbers: 14.871 Material Noncompliance ? E. Eligibility ? Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Condition: Based upon inspection of the Authority?s files and on discussion with management there were a significant number of documents that were unavailable for examination at the time of audit. Context: Of a sample size of thirty five (35) tenant files, the following information was unavailable for examination at the time of audit: ? Verification of income was missing in two (2) files Our sample size is statistically valid. Known Questioned Costs: $9,966 Cause: There is a material weakness in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers Program is in material non-compliance with the eligibility type of compliance related to the maintenance of tenant files.
Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Section 8 Housing Choice Vouchers Program and will implement internal control procedures that will ensure compliance of federal regulations. Larissa Deedrich, Executive Director, is responsible for implementing this corrective action by December 31, 2021.
2019-001
FAC accepted this audit on May 13, 2021 — management decision was due November 13, 2021.
Based upon inspection of the Authority?s files and on discussion with management there were a significant number of documents that were unavailable for examination at the time of audit. Context: Of a sample size of twenty seven (27) tenant files, the following information was unavailable for examination at the time of audit: ? Original application was missing in three (3) files ? Lead based paint form was missing in eight (8) files ? Rent reasonableness documentation was missing in two (2) files ? Annual inspection form was missing in nine (9) files Our sample size is statistically valid. Known Questioned Costs: $79,680 Cause: There is a material weakness in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers Program is in material non-compliance with the eligibility type of compliance related to the maintenance of tenant files.
Show full finding ▾Hide full finding ▴Finding 2019-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Catalog Numbers: 14.871 Material Noncompliance ? E. Eligibility ? Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Condition: Based upon inspection of the Authority?s files and on discussion with management there were a significant number of documents that were unavailable for examination at the time of audit. Context: Of a sample size of twenty seven (27) tenant files, the following information was unavailable for examination at the time of audit: ? Original application was missing in three (3) files ? Lead based paint form was missing in eight (8) files ? Rent reasonableness documentation was missing in two (2) files ? Annual inspection form was missing in nine (9) files Our sample size is statistically valid. Known Questioned Costs: $79,680 Cause: There is a material weakness in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers Program is in material non-compliance with the eligibility type of compliance related to the maintenance of tenant files.
Finding 2019-001 Material Non-Compliance- Eligibility- Tenant Files Action planned/taken in response to finding: The files in question were primarily files that DRHA obtained when it assumed the Section 8 Vouchers from Martinsville. The files were not reviewed by DRHA staff or management for accuracy. DRHA Executive Director will work with the HCV Director to develop a plan to review all Martinsville files for missing documents. Residents will be required to work with DRHA staff to sign all documents and provide all of the information that is deemed necessary to be eligible for the program. Material Weakness- Internal Control over Compliance for Eligibility Action planned/taken in response to finding: DRHA Executive Director and HCV Director have already implemented a Quality Control Plan to ensure that files are accurate and that all documentation is available for the PHA to determine eligibility. This new Quality Control policy includes mandating that all specialists use the same filing methods with resident files; all new admissions will have a checklist that must be completed by the specialist and approved by the Director. The HCV Director will randomly select no less than 16 files a month to perform a Quality Control review, ensuring that all of the appropriate documentation has been obtained and that all eligibility requirements have been met. The HCV Director will immediately address any deficiencies with the specialist to remedy any insufficiencies to assure that the program is in compliance. Larissa Deedrich, Executive Director, was designated to be responsible for implementing this corrective action by December 31, 2020.
2018-001
Based upon inspection of the Authority?s files and on discussion with management there were units that had not passed re-inspection within the required 30 day period and abatements had not been processed properly for those units. Context: Of a sample size of sixteen (16) units that had initially failed inspection, four (4) units did not pass reinspection within 30 days. HAP abatements were either not processed or not processed in accordance with the program's compliance requirements for those four (4) units. Our sample size is statistically valid. Known Questioned Costs: $2,075 Cause: There is a significant deficiency in internal controls over the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers program is not in compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.
Show full finding ▾Hide full finding ▴Finding 2019-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Catalog Numbers: 14.871 Material Noncompliance ? N. Special Tests and Provisions ? HQS Inspections Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets the Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority?s files and on discussion with management there were units that had not passed re-inspection within the required 30 day period and abatements had not been processed properly for those units. Context: Of a sample size of sixteen (16) units that had initially failed inspection, four (4) units did not pass reinspection within 30 days. HAP abatements were either not processed or not processed in accordance with the program's compliance requirements for those four (4) units. Our sample size is statistically valid. Known Questioned Costs: $2,075 Cause: There is a significant deficiency in internal controls over the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers program is not in compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.
Finding 2019-002 Material Non-Compliance- HQS Inspections Action planned/taken in response to finding: DRHA is in the process of hiring an additional HQS Inspector to assist in making sure that units are inspected promptly. A new Quality Control policy has been implemented that will ensure that failed inspections that do not pass a reinspection within 30 days will have the HAP check abated. DRHA?s HCV Director will review all failed inspection reports on a bi-weekly basis and will abate all HAP payments for units nearing 30 days of a failed inspection that does not have a reinspection scheduled or an extension granted. HQS Inspectors will be trained to follow up on all failed inspections on time so that they can be sure to schedule inspections before the 30-day deadline.Larissa Deedrich, Executive Director, was designated to be responsible for implementing this corrective action by December 31, 2020.
2018-002
FAC accepted this audit on October 14, 2019 — management decision was due April 14, 2020.
GSA_MIGRATION
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GSA_MIGRATION
FAC accepted this audit on September 14, 2017 — management decision was due March 14, 2018.
GSA_MIGRATION
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