Housing Authority of the City of BradentonLocal Government

Finding 2025-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Federal Assistance Listing Numbers: 14.871 Noncompliance - E. Eligibility 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 members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 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 sections 5.601 et seq.) and 24 CFR sections 982.201, 982.515, 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 and the Authority included income that was miscalculated during the annual recertification. Context: There are approximately one hundred seventy five (175) Section 8 Housing Choice Voucher units. Of a sample size of twelve (12) tenant files, the following information was unavailable for examination at the time of audit:  Original applications were missing in two (2) files  Consent to release information form was missing in one (1) file  Lead based paint form was missing in one (1) file  Copies of signed leases were missing in four (4) files  Verification of income and assets was missing in three (3) files In addition, two (2) tenants' annual recertifications (HUD-50058 form) included income that was miscalculated. Our sample size is statistically valid. Known Questioned Costs: $36,406 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. 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 2025-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Federal Assistance Listing Numbers: 14.850 Noncompliance – E. Eligibility 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 members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 960.259). 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 sections 5.601 et seq.) and 24 CFR Subpart C sections 960.253, 960.255, and 960.259). 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 failed to properly calculate the tenant's rent payments using documentation from third party income verification. Context: There are approximately two hundred forty one (241) Public and Indian Housing Program units. Of a sample size of thirteen (13) tenant files, the Authority failed to properly calculate the rent payments of three (3) tenants by not utilizing documentation from third party income verification. Our sample size is statistically valid. Known Questioned Costs: $27,188 Cause: There is a material weakness in internal controls over the compliance for the eligibility type of compliance related to the calculation of rent. 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 Public and Indian Housing Program is in material non-compliance with the eligibility type of compliance related to the calculation of rent. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.