Wilmington Housing AuthorityLocal Government

Failure to perform reconciliations of significant accounts to the general ledger accounts in a timely or accurate manner. These delays, inadequate schedules, reconciliations and supporting documentation resulted in untimely financial reporting and impact on the program activities.

Failure to perform reconciliations of significant accounts to the general ledger accounts in a timely or accurate manner. These delays, inadequate schedules, reconciliations and supporting documentation resulted in untimely financial reporting and impact on the program activities.

Condition: Prior audits noted material weaknesses in internal controls over compliance with applicable HUD eligibility, recertification process, and other instances where the Authority did not follow their internal controls designed to ensure compliance with Housing Quality Standards (HQS) requirements.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Housing Choice Voucher Program ALN: 14.871 Award Period: 4/1/20 ? 3/31/21 Type of Finding: Material Weakness in Wait List Testing ? New Tenants Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. Except 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 (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: Testing of 7 Housing Choice Voucher Program files selected for wait list - new tenants testing noted exceptions in 2 files. There were 2 instances where the files were not provided by the client, so no attributes could be tested. Questioned Costs: Unable to determine. Context: Testing of 7 tenant files were selected from a population of 54 tenants and there were 2 instance of exceptions: ? The files were not provided by the client, so no attributes could be tested Cause: The Authority did not follow the established procedures in its Housing Choice Voucher Administrative Plan. Effect: The PHA is not in compliance with HUD requirements. Repeat Finding: No Recommendation: We recommend that the Authority ensures they are trying to send over all support needed for each samples picked Explanation of disagreement with audit finding: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Housing Choice Voucher Program ALN: 14.871 Award Period: 4/1/20 ? 3/31/21 Type of Finding: Material Weakness in HAP Register Testing Criteria or specific requirement: The PHA must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. This HAP amount must be reflected on the HAP contract and HAP register. (24 CFR section 982.158 and 24 CFR part 982, subpart K). Condition: Testing of 60 Housing Choice Voucher Program files selected for HAP Register Testing noting 9 exceptions. There was 9 instances where the files were not provided by the client including the 50058 form and letter from PHA to tenant and landlord so no attributes could be tested Questioned Costs: Unable to determine. Context: Testing of 60 Housing Choice Voucher Program files selected for annual HQS testing noted exceptions in 9 files. ? 9 instances the files were not provided by the client including the 50058 form and letter from PHA to tenant and landlord so no attributes could be tested. Cause: The Authority did not follow the established procedures in its Housing Choice Voucher Administrative Plan. Effect: The PHA is not in compliance with HUD requirements. Repeat Finding: Yes Recommendation: We recommend that the Authority ensures they are trying to send over all support needed for each samples picked Explanation of disagreement with audit finding: There is no disagreement with the audit finding.

Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family?s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: Testing of 60 Housing Choice Voucher Program files selected for HAP Register Testing noting 1 exception. There was 1 instance where no inspections were given from the client for the tenant, so no attributes could have been tested. Questioned Costs: Unable to determine. Context: Testing of 60 Housing Choice Voucher Program files selected for annual HQS testing noted exceptions in 1 file ? 1 instance where no inspections were given from the client for the tenant, so no attributes could have been tested. Cause: The Authority did not follow the established procedures in its Housing Choice Voucher Administrative Plan. Effect: The PHA is not in compliance with HUD requirements. Repeat Finding: Yes Recommendation: We recommend that the Authority reviews support and finds all inspections that we need for the sampled tenants so they can avoid findings like these Explanation of disagreement with audit finding: There is no disagreement with the audit finding.

Criteria or specific requirement: For both family income examinations and reexaminations, 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 sections 982.516). Determine income eligibility and calculate the tenant's rent payment using the documentation from third-party verification in accordance with 24 CFR part 5 subpart F (24 CFR section 5.601 et seq)(24 CFR sections 982.201, 982.515, and 982.516). Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payments as necessary using the documentation from third-party verification (24 CFR section 982.516). Condition: Testing of 60 Housing Choice Voucher Program files selected for eligibility testing noting exceptions in 15 files. Questioned Costs: $123,996 Context: Testing of 60 Housing Choice Voucher Program files selected for eligibility testing noted the following exceptions in the 15 files: ? 5 files were missing Declaration 214 forms ? 14 files lacked income reported on tenant application ? 10 files lacked assets reported on tenant application ? 10 files lacked expenses reported on tenant application ? 14 files had incorrect HAP calculations due to missing information as noted above ? 9 files were not reexamined on an annual basis ? 10 files were missing HUD 9886 release forms ? 10 files were missing general release forms ? 10 files were missing the verification that tenants met the low-income limits for the PHA?s location ? 12 files lacked a recertification checklist ? 10 files were missing a signed HAP Contract Cause: The Authority failed to perform recertifications in accordance with their stated policies and procedures and HUD regulations and control procedures were not in place to detect. Effect: The PHA is not in compliance with HUD requirements. Repeat Finding: Yes Recommendation: The Auditors recommend that management review their recertification process and increase the amount of quality control reviews until they can ensure a majority of the files meet HUD's eligibility requirements. We also recommend that management identify the specialists responsible for the files and investigate whether findings represent a systemic problem or are limited to a few specialists. Additional training for housing specialists would also improve accuracy. Explanation of disagreement with audit finding: There is no disagreement with the audit finding.

2020-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Public and Indian Housing CFDA: 14.850 Award Period: 4/1/19 ? 3/31/20 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 24 CFR section 960.259 states that for both family income examinations and reexaminations, the PHA must 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. Condition: During our testing, we noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Costs: Unable to determine. Context: Testing of 40 Public Housing tenant files identified exceptions in 2 files, which included the following: - 2 files lacked support for income, assets and expenses included in the calculation Cause: The Authority failed to perform recertifications in accordance with their stated policies and procedures and HUD regulations and control procedures were not in place to detect.

2020-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Housing Choice Voucher Program Cluster CFDA: 14.871 / 14.879 Award Period: 4/1/19 ? 3/31/20 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: For both family income examinations and reexaminations, 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 sections 982.516). Determine income eligibility and calculate the tenant?s rent payment using the documentation from third-party verification in accordance with 24 CFR part 5 subpart F (24 CFR section 5.601 et seq) (24 CFR sections 982.201, 982.515, and 982.516). Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payments as necessary using the documentation from third-party verification (24 CFR section 982.516). Condition: During our testing, we noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Costs: Unable to determine. Context: Testing of 40 Housing Choice Voucher Program tenant files identified exceptions in 25 files, which included the following: - 3 files lacked support for income and expenses - 3 files were missing Declaration 214 forms - 23 files were missing general release forms - 2 files were missing HUD 9886 release forms Cause: The Authority failed to perform recertifications in accordance with their stated policies and procedures and HUD regulations and control procedures were not in place to detect.

2020-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Housing Choice Voucher Program Cluster CFDA: 14.871 / 14.879 Award Period: 4/1/19 ? 3/31/20 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: 24 CFR part 908 requires the PHA to submit this form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. Condition: During our testing, we noted the Authority did not follow their internal controls designed to ensure compliance with Reporting requirements. Questioned Costs: Unable to determine. Context: Testing of 40 Housing Choice Voucher Program tenant files identified exceptions in 11 files, which included the following: - 11 recertifications were no submitted into PIC. Cause: The Authority failed to perform recertifications in accordance with their stated policies and procedures and HUD regulations and control procedures were not in place to detect.

2020-004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Housing Voucher Cluster CFDA: 14.871 / 14.879 Award Period: 4/1/19 ? 3/31/20 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: The PHA must inspect the unit leased to a family at least annually to determine if the unit meets 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 under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP Contract (24 CFR sections 982.158 (d) and 982.404). Condition: During our testing, we noted instances where the Authority did not follow their internal controls designed to ensure compliance with Housing Quality Standards (HQS) requirements. Questioned Costs: Unable to determine. Context: Testing of 40 Housing Choice Voucher Program files selected for annual HQS testing noted exceptions in 7 files. ? 7 instances where more than 1 year passed between annual inspections Cause: The Authority did not follow the established procedures in its Housing Choice Voucher Administrative Plan. Effect: The PHA is not in compliance with HUD requirements. Repeat Finding: Yes Recommendation: We recommend that the Authority review their annual inspection processes to ensure that inspections are performed timely, all inspections are kept in the tenant file, and to ensure follow up inspections are performed timely in accordance with the Administration Plan. Explanation of disagreement with audit finding: There is no disagreement with the audit finding.

2019-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Public and Indian Housing CFDA: 14.850 Award Period: 4/1/18 ? 3/31/19 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: 24 CFR section 960.259 states that for both family income examinations and reexaminations, the PHA must 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 960.257 states for families who pay an income based rent, the PHA must conduct a reexamination of the family income and composition at lease annually. Condition: During our testing, we noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Costs: Unable to determine. Context: Testing of 40 Public Housing tenant files identified exceptions in 20 files, which included the following: ? 4 files noted errors in the calculation of rent and/or lacked support for income, assets and expenses included in the calculation ? 17 residents did not have recertification?s performed timely ? 1 rent payment per the rent roll could not be agreed back to 50058?s located in tenant file, therefore this file was unable to be checked for compliance ? 2 file lacked an updated general release form and Authorization for Release of Information Form (HUD-9886), and lacked required signature Cause: The Authority failed to perform recertifications in accordance with their stated policies and procedures and HUD regulations and control procedures were not in place to detect. Effect: The Authority is not in compliance with federal regulations regarding eligibility. The amount of tenant rent could be incorrect based on missing or inaccurate information. Repeat Finding: Yes Recommendation: The Auditors recommend that management review their recertification process and increase the amount of quality control reviews until they can ensure a majority of the files meet HUD's eligibility requirements. We also recommend that management identify the specialists responsible for the files and investigate whether findings represent a systemic problem or are limited to a few specialists. Additional training for housing specialists would also improve accuracy. Explanation of disagreement with audit finding: There is no disagreement with the audit finding.

2019-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Housing Choice Voucher Program CFDA: 14.871 Award Period: 4/1/18 ? 3/31/19 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: For both family income examinations and reexaminations, 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 sections 982.516). Determine income eligibility and calculate the tenant?s rent payment using the documentation from third-party verification in accordance with 24 CFR part 5 subpart F (24 CFR section 5.601 et seq) (24 CFR sections 982.201, 982.515, and 982.516). Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payments as necessary using the documentation from third-party verification (24 CFR section 982.516). Condition: During our testing, we noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Costs: Unable to determine. Context: Testing of 40 Housing Choice Voucher Program tenant files identified exceptions in 27 files, which included the following: ? 2 files noted errors in the calculation of rent and/or lacked support for income ? 5 residents did not have recertifications performed timely ? 24 HUD-50058s were not submitted to PIC ? 3 HUD-50058s were submitted to PIC per Visual Homes, but could not be found in PIC Cause: The Authority failed to perform recertifications in accordance with their stated policies and procedures and HUD regulations and control procedures were not in place to detect. The Authority encountered exceptions during the software conversion that caused the staff to get behind in reporting to the PIC system. Effect: The Authority is not in compliance with federal regulations regarding eligibility. The amount of HAP and tenant rent could be incorrect based on missing or inaccurate information. Repeat Finding: Yes Recommendation: The Auditors recommend that management review their recertification process and increase the amount of quality control reviews until they can ensure a majority of the files meet HUD's eligibility requirements. We also recommend that management identify the specialists responsible for the files and investigate whether findings represent a systemic problem or are limited to a few specialists. Additional training for housing specialists would also improve accuracy. Explanation of disagreement with audit finding: There is no disagreement with the audit finding.

2019-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Housing Choice Voucher Program CFDA: 14.871 Award Period: 4/1/18 ? 3/31/19 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: The PHA must inspect the unit leased to a family at least annually to determine if the unit meets 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 under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP Contract (24 CFR sections 982.158 (d) and 982.404). Condition: During our testing, we noted instances where the Authority did not follow their internal controls designed to ensure compliance with Housing Quality Standards (HQS) requirements. Questioned Costs: Unable to determine. Context: Testing of 40 Housing Choice Voucher Program files selected for annual HQS testing noted exceptions in 10 files. ? 10 instances where more than 1 year passed between annual inspections Testing of 40 Housing Choice Voucher Program files selected for failed HQS testing noted exceptions in 7 files. ? 4 instances in which the unit never passed inspection and was not abated ? 3 instances in which the unit was not re-inspected timely Testing of 7 Housing Choice Voucher Program files selected for quality control HQS testing noted exceptions in 4 files. ? 4 instances in which the unit selected for re-inspection had an annual HQS that was older than three months at the time of the reinspection Cause: The Authority did not follow the established procedures in its Housing Choice Voucher Administrative Plan. Effect: The PHA is not in compliance with HUD requirements. Repeat Finding: Yes Recommendation: We recommend that the Authority review their annual inspection, failed inspection, and QC inspection processes to ensure that inspections are performed timely, all inspections are kept in the tenant file, and to ensure follow up inspections are performed timely in accordance with the Administration Plan. Explanation of disagreement with audit finding: There is no disagreement with the audit finding.

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