Flagler County Housing Authority

SECTION III ? FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2019-1 Condition: Deficiencies Noted In Examination of Low-Income Public Housing Tenant Files In a sample of thirteen (13) LIPH Participant files the following deficiencies were noted: 1 file lacked correct Rent Calculation FY 2019 1 file lacked 3rd Party Income Verifications 2 files lacked 30-day notice of rent increase 2 files lacked documentation of EIV review for FY 2019 recertification 2 new admission files were not admitted to the LIPH program in accordance with Authority policy and HUD regulations CFDA Number: 14.850 Questioned Costs: None Criteria: 24 CFR requirements for public housing eligibility Cause/Effect: The Authority?s deficiencies in its resident files stems from a lack of certain controls concerning HUD requirements and procedures during the first and second quarters of fiscal year 2019. The Authority has not been in complete compliance with HUD requirements. Recommendation: We recommend that the Authority review its internal control procedures over tenant file re-certifications and documentation. We also recommend more standardization in file organization of information Reply: We concur with this finding and the Auditor?s recommendation. We have reviewed all the internal control procedures over tenant file re-certifications and documents as of February 2019 and corrected the file deficiencies noted fiscal year 2018 finding. These deficiencies were not present in file actions after the second quarter of fiscal year 2019. Additionally, management has implemented and believes they will clear this finding in fiscal year 2020.