TUSCALOOSA HOUSING AUTHORITYNon-Profit

Dear Sir or Madam: the following details the corrective action plan recommended for the FYE March 31, 2021 audit: Finding 2021-001 Public and Indian Housing Significant Deficiency in Internal Controls Federal Program: Federal Assistance Listing No. 14.850 Public and Indian Housing. Criteria: The Tuscaloosa Housing Authority (THA) should perform annual re-certifications of all program participants to ensure that tenant files are maintained in compliance with all underlying HUD standards and requirements. Condition: Our review of forty (40) Public and Indian Housing Program files revealed the following deficiencies: There was 1 file where the income after exclusions was incorrect, resulting in an incorrect calculation of the tenant rent. Context: As part of the tenant re-certification process, THA must correctly compute tenant rents and also maintain proper supporting documentation in the participant?s file. Cause: While performing annual re-certifications, errors in calculating tenant income were made. Effect: Tenant rent was incorrectly computed. Questioned Costs: Undetermined. Auditors? Recommendation: We recommend that the agency review a quality control sampling of files at re-certification to ensure that income calculations are correct. THA Response: The income calculation for the file with the error have been corrected. THA staff attended NAHRO?s rent calculation training in November 2021. Additionally, THA will continue to conduct a quality control sampling from each case worker?s monthly certifications. Staff Contact: Olesia Southall, Director of Housing. Target Completion date: June 30, 2022.

September 5, 2019 Birmingham Office Public Housing Division Medical Form Building 950 22nd Street North Suite 900 Birmingham, AL 35203 Dear Sir or Madam: The following details the corrective action plan recommended for the March 31, 2019 audit: Findings: Financial Statement Audit 2019-001 ? Internal Control of the Accounting Function Condition and Criteria: Adjusting journal entries had to be made to enable the financial statements to be presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America. The notes receivable and grant revenues had to be materially adjusted. Type of Finding: Material Weakness Cause: The Housing Authority?s internal control structure was not adequate to prevent these deficiencies. Effect: Note receivable and grant revenues were adjusted to actual. Questioned Costs: Not determinable at this time. Birmingham Office Public Housing Division September 5, 2019 Page Two Auditors? Recommendation: We recommend that the Housing Authority strengthen its internal controls to prevent this deficiency in the future. Response to Finding: The grant revenue funds were not drawn down until April 2019. The grant revenue entries have been corrected and note receivable created to reflect the transactions in question. To prevent any future deficiencies an Internal Controls for Grant revenue and note receivables have been establish: The purpose of the internal controls is to monitor and review grant funds used for capital projects. This will be accomplished with communication, periodic reviews, and documentation with the Director of Development and Director of Finance. This will help identify any discrepancies, and errors when creating note receivables and requesting grant revenue for capital projects. Findings: Major Federal Award Programs Audit 2019-002 ? Utility Allowance Study CFDA Number: 14.871 Housing Choice Vouchers Condition and Criteria: Per 24 CFR Section 982.517, Housing Authorities are required to review utility allowance rates on an annual basis and adjust the rates if there is a variance of 10 percent or more than the previous utility allowance data. Type of Finding: Significant Deficiency Cause: The Housing Authority did not ensure that the study was performed in a timely manner. Birmingham Office Public Housing Division September 5, 2019 Page Three Effect: The Housing Authority could not provide documentation that the annual utility allowance study was performed. Questioned Costs: Not determinable at this time. Auditor?s Recommendation: We recommend that the Housing Authority strengthen its internal controls to prevent this deficiency in the future. Response to Finding: The contractor, Nelrod Company, was in the process of preparing the revised utility allowances. However, the staff person assigned by Nelrod did not completed the allowance study, and the Section 8 Supervisor failed to follow up with Nelrod in a timely manner. To avoid this problem in the future, the Section 8 Supervisor will post the anniversary date on her calendar and will initiate the review of the allowances at least 120 days prior to the date of the of the last revision. The allowances, if revised, will be submitted to the Board for approval at least 60 days prior to the date of implementation. The Board recently approved the allowance revision at the August 2019 board meeting. Sincerely, Ralph Ruggs Executive Director