DEERFIELD BEACH HOUSING AUTHORITY

Tenant File Documentation Maintenance (Significant Deficiency, Noncompliance) Section 8 Housing Choice Voucher Program – Assistance Listing No. 14.871; Grant Period- Fiscal Year-End September 30, 2025 Criteria The Housing Choice Voucher Program Guidebook, the Code of Federal Regulations and HUD PIH Notices provide requirements and guidance for which the Section 8 Housing Choice Voucher Program is to be administered and operated under with respect to tenant eligibility and reexaminations, and document maintenance. Condition and Perspective During audit fieldwork, forty Section 8 Housing Choice Voucher Program participant tenant files were requested for review for compliance with Program eligibility, reexamination and document maintenance requirements. The review results noted the following omissions: 1) 7 files did not contain HUD Form 52517 Request for Tenancy Approval 2) 3 files did not contain HUD Form 9886 or 9886-A Authorization for Release of Information/Privacy Act Notice 3) 2 files did not contain HUD Form 52641 HAP Contract and HUD Form 52641-A Tenancy Addendum 4) 1 file did not contain HUD Form 50058 Family Report Questioned Costs – None noted Cause Deficiency over tenant file documentation maintenance requirements. Effect Non-compliance with tenant file documentation maintenance requirements. Recommendation We recommend that the Authority catalog and maintain all required tenant file documents in accordance with federal requirements and the Authority’s internal policies.Management’s Response Management's Response- The Authority will catalog and maintain all required tenant file documents in accordance with federal requirements and the Authority’s internal policies. Ms. LaTonya Coley-McKenley, Executive Director, has assumed the responsibility of executing this corrective action by August 1, 2026.

The Authority will catalog and maintain all required tenant file documents in accordance with federal requirements and the Authority’s internal policies. Ms. LaTonya Coley-McKenley, Executive Director, has assumed the responsibility of executing this corrective action by August 1, 2026.

Program Name: Housing Voucher Center Cluster Internal Control Significant Deficiency A Allowable Exp AL Number: 14.871 2024-002 INTERPROGRAM DUE TO/DUE FROM ACTIVITIES Criteria: According to HUD Accounting Brief #14, Due To/Due From relationships should not be reported under accrual accounting simply from the result of a PHA using a common checking or working capital account. Because of the basic nature of most Federal and state programs, resources from one program cannot be used to support the costs of another program. HUD views Due To’s and Due From’s reported in a PHA’s Federal programs as possible indicators of non-compliance. Condition: The Authority has interfund receivables and payables that have not been repaid as of fiscal year end. This results in certain programs having a negative cash balance as of fiscal year end. Context: The Authority reported a material ($134,558 in total, $42,682 in HCV program) amount of interfund receivables and payables, which is a significant red flag for HUD reviewers. Cause: The Authority was not effectively monitoring and managing interfund program balances in order to ensure that programs were not spending funds that they do not have. Effect: The use of Due to/ Due From transactions reported in the Authority's financials net to some programs having negative cash balances, which could signify to HUD that one or more programs have used resources to cover the costs of another program. Recommendations: The Authority should expand it's controls over cash reconciliations to include a step to verify if a program, fund or component unit is accurate along with the entire cash pool. Also interfund should be repaid monthly at a minimum. Management Views: Management agrees with the finding, see Management's Corrective Action Plan.

Management’s Corrective Action Plan Program Name: Name of Federal Program or Cluster CFDA Number:14.871 2023-002: Interprogram Due To/Due From Activities Criteria: According to PHA Accounting Brief #14, Due To/Due From relationships should not be reported under accrual accounting simply from the result of a PHA using a common checking or working capital account. Because of the basic nature of most Federal and state programs, resources from one program cannot be used to support the cost of another program. HUD views Due To’s and Due From’s reported in a PHA ‘s Federal programs as possible indicators of noncompliance. Condition: The Authority has inter-fund receivables and payables that have not been repaid as of fiscal year-end. This results in certain programs having a negative cash balance as of the fiscal year end. Context: The Authority’s reported a ($33,461 in HCV program and $154,268 Mainstream) interfund payable due to Business Skill Center (nonfederal program ) which is a significant red flag for HUD reviewers. Management Response: The $33,461 due from the Housing Choice Voucher (HCV) program to Business Skill Center represents the use of non-federal funds to cover HCV’s monthly payroll and benefit expenses, which typically range from $30,000 to $35,000. These expenses are temporarily paid by Business Skill Center and reimbursed within 30 days upon receipt of HCV Administrative Fee funding from HUD. The $154,268 due from the Mainstream program to Business Skill Center non-federal funds resulted from a funding shortfall that occurred during the transition of Mainstream Vouchers from the Dania Housing Authority to the Deerfield Beach Housing Authority. During this period, the Deerfield Beach Housing Authority had to apply for and await the disbursement of Mainstream Shortfall funds from HUD. As these funds were received over a period of 3 to 4 months, the Business Skill Center covered costs using non-federal funds, which were later reimbursed.

2023-002