San Juan Housing AuthorityLocal Government

Material weakness in internal control - Financial statements. Criteria or Specific Requirement: PHA's financial statements contained material misstatements and did not agree with the PHA's REAC submission. Condition: The PHA's financial statements were materially misstated requiring adjustments. Cause: The PHA has limited funds and did not employ an outside fee accountant. Effect: The PHA's financial statements were inaccurate. Questioned Costs: None. Repeat Finding: Not a repeat finding. Recommendation: The PHA should employ an outside fee accountant or an employee with accounting experience. Response: The PHA will hire an outside fee accountant or an employee with accounting experience.

Material weakness in internal control - ACH payments. Criteria or Specific Requirement: Board approval of ACH expenses should be obtained for adequate internal control over disbursements. Condition: The PHA's Board is not approving ACH payments. Cause: Unknown. Effect: ACH payments are not being approved by the PHA's Board. Questioned Costs: None. Repeat Finding: Not a repeat finding. Recommendation: The PHA should number the ACH payments on its bank statements and attach supporting documentation with the corresponding number. The numbered supporting documentation should be attached to a copy of the bank statement and approved by a Board member authorized to cosign checks. Response: The PHA will implement this internal control procedure.

Tenant file documentation - Housing Choice Voucher Program - ALN No. 14.871. Criteria or Specific Requirement: The PHA's tenant files should contain the required documentation to support the tenants housing assistance payment. Condition: Thirteen tenant files were tested non-statistically and the following exceptions were found: 1. Two files were found where the housing assistance payment was overpaid. The PHA over paid the landlord by a total of $53 on these two tenants. 2. Five files were found where the tenant income verification was either missing or incomplete. 3. Eleven files were found where rent reasonableness documentation was not in the file. 4. One file was found without a citizenship declaration form. 5. Six files were found with either a missing or incorrect utility allowance calculations. Cause: The PHA is not reviewing its tenant files to make sure all required documentation is present. Effect: The PHA's tenant files are not being properly documented. Questioned Costs: None. Repeat Finding: Not a repeat finding. Recommendation: The PHA should use a file checklist and review the tenant files to make sure all required documentation is present. Response: The PHA will use a file checklist and review tenant file documentation for completeness.