SPRINGFIELD HOUSING AUTHORITY

Criteria: The U.S. Department of Housing and Urban Development Capital Fund Guidebook 2016 states that the PHA can draw funds up to, but not more than, 3 days in advance of a valid expense and should draw the amount needed to cover such costs. Condition: The PHA did not spend CFP money that was drawn down within the 3 day window. Context: We noted that the PHA has deferred CFP revenue account of $43,722, which indicates that the CFP money drawn down from the 2022 CFP year had not yet been spent. Cause: The PHA had a lack of proper internal control procedures surrounding the cash management of the CFP program. Effect: The lack of controls surrounding the cash management caused the PHA to have unspent CFP money at year end. Recommendations: Establish proper CFP procedures to ensure proper handling of CFP draw downs. Management Views: Agrees with auditor finding.

Program Name Low Rent Public Housing CFDA Number 14.850 2021-002 Waiting List - Special Tests and Provisions (N) Significant Deficiency Criteria The PHA must establish and adopt written policies for admission of tenants. The PHA tenant selection policies must include requirements for applications and waiting lists, description of the policies for selection of applicants from the waiting lists, and policies for verification and documentation of information relevant to acceptance or rejections of an applicant (24 CFR sections 960.202 through 960.206). Condition The PHA used COVID-19 exemptions and stopped the waiting list during COVID-19. Context The PHA stopped updating the waiting list during COVID-19 as list was closed, and all old applicants were contacted. The PHA did not start the list back up when the COVID-19 exemptions expired. Cause Unknown. Effect Tenants have been housed based on available units rather than in accordance with PHA written policies and HUD approved wait list. Recommendations Start wait list back up and follow written policies for housing new applicants. Management Views Management Agrees.

2021-003 Annual Recertification - Eligibility (E) Significant Deficiency Criteria Re-examine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third-party verification (24 CFR sections 960.253, 960.257, and 960.259). Condition The re-exams are done by creating a manual list of current tenants during the given month. The list is then used to contact, document and complete the re-examination however if the tenant file is not in the filing cabinet at the time the list is made the family is likely to be missed for required re-examination. Context We selected a sample of 40 files from a population of 330 families. Our testing noted two families were not re-examined in the 12 month period as prescribed in the criteria section. The family had prior re-examination but those were older than 12 months from the lease period. Cause The family files were not in the filing cabinet at the time a list was made by the staff for annual re-exams. Effect Tenants have not be re-examined within the prescribed 12 months. Recommendations Utilize the public housing tenant software to monitor re-exams and produce the population of families to be re-examined rather than manual lists. Management Views Management Agrees.