Brownsville Housing AuthorityLocal Government

Auditors’ Recommendation: The Authority should perform housing quality control re-inspections according to HUD guidelines. Grantee Response: We will comply with the auditors’ recommendation. Anticipated Completion Date: June 30, 2026 Views of responsible officials and planned corrective actions: We will comply with the auditors’ recommendations.

Brownsville Housing Authority respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Miller & Rose, PA 1309 East Race Searcy, AR 72143 Audit period: Year ended June 30, 2022 B. FINDINGS - FINANCIAL STATEMENTS AUDIT None C. FINDINGS AND QUESTIONED COSTS-MAJOR FEDERAL AWARD PROGRAMS AUDIT DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 2022-001 Family Eligibility Files Federal Program: Housing Choice Voucher, CFDA No. 14.871 Criteria: The Authority?s purpose for existence is providing decent, safe and affordable housing to low-income persons. As such, the Authority prepares a file for each admitted family, which contains information necessary to determine eligibility for assistance and calculations of rent assistance to be paid on the family?s behalf. HUD regulations prescribe the content of these family files. These requirements consist of the following: a. 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. b. 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. c. Determine income eligibility and calculate the tenant's rent payment in accordance with HUD regulations. d. Select tenants from the public housing waiting list in accordance with the PHA's tenant selection policies. e. Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary. Condition: Exceptions were noted in the review of family eligibility files. Questioned costs: None Context: Testing of nineteen family files revealed the following deficiencies: 1. Three files contained errors in the documentation of household income. 2. One file lacked social security number documentation. 3. One file lacked appropriate rent reasonableness documentation. 4. One file lacked a housing quality standard (HQS) ?passed? inspection. Recommendation: A thorough review of tenant files should be performed for the purpose of eliminating the deficiencies. Views of responsible We will comply with the auditors? recommendations. We have already begun officials and planned reviewing files and corrected the deficiencies. corrective actions:

2021-001

Brownsville Housing Authority respectfully submits the following corrective action plan for the year ended June 30, 2021. Name and address of independent public accounting firm: Miller & Rose, PA 1309 East Race Searcy, AR 72143 Audit period: Year ended June 30, 2021 B. FINDINGS - FINANCIAL STATEMENTS AUDIT None C. FINDINGS AND QUESTIONED COSTS-MAJOR FEDERAL AWARD PROGRAMS AUDIT DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 2021-001 Family Eligibility Files Federal Program: Housing Choice Voucher, CFDA No. 14.871 Criteria: The Authority?s purpose for existence is providing decent, safe and affordable housing to low-income persons. As such, the Authority prepares a file for each admitted family, which contains information necessary to determine eligibility for assistance and calculations of rent assistance to be paid on the family?s behalf. HUD regulations prescribe the content of these family files. These requirements consist of the following: a. 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. b. 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. c. Determine income eligibility and calculate the tenant's rent payment in accordance with HUD regulations. d. Select tenants from the public housing waiting list in accordance with the PHA's tenant selection policies. e. Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary. Condition: Exceptions were noted in the review of family eligibility files. Questioned costs: None Context: Testing of nineteen family files revealed the following deficiencies: 1. Two files contained errors in the calculation of housing assistance payments. 2. One file lacked supporting documentation for a childcare deduction. 3. One file lacked appropriate rent reasonableness documentation. Recommendation: A thorough review of tenant files should be performed for the purpose of eliminating the deficiencies. Views of responsible We will comply with the auditors? recommendations. We have already begun officials and planned reviewing files and corrected the deficiencies. corrective actions:

GSA_MIGRATION