Housing Authority of the City of Galveston, Texas

Housing Voucher Cluster Material Weakness in Internal Control Material Noncompliance Condition: Out of a population of approximately 1,700 for Housing Voucher Cluster, 40 tenant files were tested and 10 files had the following deficiencies: •Six files had incorrect or missing income calculation support; •Three files had missing 214 declaration form at the time of testing; •Two files were missing or had unsigned 9886 release of information forms for the annual recertification; •Two files were missing identification for an adult member of the household; •Two files did not have annual recertification performed within the 12 month window of the previous certification; and •One file was missing a zero-income declaration for an adult member of the household. Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Context: The auditor randomly selected 40 tenant files out of the population which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority does not have adequate systems and controls in place to ensure all of the eligibility requirements are being followed. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: $113,329 Auditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. Management Response: See the Corrective Action Plan in this report.

ousing Voucher Cluster Material Weakness in Internal Control Material Noncompliance Condition: Out of a population of approximately 1,700 for Housing Voucher Cluster, 40 tenant files were tested and 10 files had the following deficiencies: • Six files had incorrect or missing income calculation support; • Three files had missing 214 declaration form at the time of testing; • Two files were missing or had unsigned 9886 release of information forms for the annual recertification; • Two files were missing identification for an adult member of the household; • Two files did not have annual recertification performed within the 12 month window of the previous certification; • One file was missing a zero-income declaration for an adult member of the household Criteria: The Authority's Administrative Plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Context: The auditor randomly selected 40 tenant files out of the population which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority does not have adequate systems and controls in place to ensure all of the eligibility requirements are being followed. Effect: The Authority is not in compliance with HUD requirements regarding eligibtlity which could result in the incorrect amount of rental assistance provided. Questioned Costs: $113329 Auditor Recommendations: The Authority should reevaluate their establishe procedures and controls in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor's sample. Management Response: GHA is working to reevaluate and update the Standard Operating Procedures and controls in placetoensure fullcompliance in regards to eligibility and thetimeliness of re-certifications. GHA has corrected the deficiencies noted in thetested files andwi}l be performing reviews of the remaining universe to address possible similar errors. All staff has been advised to review their caseload to ensure tenant files include all the HUD required forms and that they are signed and dated, including clear copies of required documents, birth certificates, social security cards, picture lOs of household members, etc. GHA will provide additional advance income calculation training and guidance to staff to ensure all transactions are implemented correctly. GHA is in the process of hiring additional staff to ensure all the annual certifications are completed within the 12 month period. Name(s) of the contact person(s) responsible for corrective action Godwin Planned completion date for corrective action plan: This will be implemented immediately and training will occur no later than 9/30/2026.

2024-001

Public Housing Operating Fund Material Weakness in Internal Control Material Noncompliance Condition: Out of a total tenant population of approximately 430 for Public and Indian Housing, 44 tenant files were tested and 23 files had the following deficiencies: •Eleven files had incorrect or documentation needed to determine household income; •Ten files were missing 214 declaration forms for a member of the household; •Two files did not have support provided for the tested annual recertification; •Two files had missing or late 9886 release of information forms; •Two files had missing identification documents for members of the household; and •One file did not have a 50058 recertification document that supported the rent amount charged to the tenant. Criteria: The Authority’s ACOP and 24 CFR 960.257 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding complete and accurate tenant files for all public housing sites. Context: The auditor randomly selected 44 tenant files out of the population which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority’s staff at the Public housing sites do not have adequate systems and controls in place to ensure all of the eligibility requirements are being followed. Effect: The Authority is not in full compliance with all of the HUD requirements regarding eligibility and tenant recertification which could result in incorrect amount of rental assistance being provided. Questioned Costs: Unknown. Auditor Recommendations: The Authority should correct the deficiencies noted in the tested files and perform reviews of the remaining universe, for consideration of similar errors. In addition, the Authority should establish quality control review procedures to ensure proper monitoring of compliance with the requirements related to tenant eligibility. Management Response: See the Corrective Action Plan in this report.

Public Housing Operating Fund Material Weakness in Internal Control Material Noncompliance Condition: Out of a total tenant population of approximately 430 for Public and I ndian Housing, 44 tenant files were tested and 23 files had the following deficiencies: • Eleven files had incorrect or documentation needed to determine household income; • Ten files were missing 214 declaration forms for a member of the household; • Two files did not have support provided for the tested annual recertification. • Two files had missing or late 9886 release of information forms • Two files had missing identification documents for members of the household; and • One file did not have a 50058 recertification document that supported the rent amount charged to the tenant. Criteria: The Authority's ACOP and 24 CFR 960.257 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding complete and accurate tenant files for all public housing sites. 11 Context: The auditor randomly selected 44 tenant files out of the population which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority's staff at the Public housing sites do not have adequate systems and controls in place to ensure all of the eligibility requirements are being followed. Effect: The Authority is not in full compliance with all of the HUD requirements regarding eligibility and tenant recertification which could result in incorrect amount of rental assistance being provided. Questioned Costs: Unknown Auditor Recommendations: The Authority should correct the deficiencies noted in the tested files and perform reviews of the remaining universe, for consideration of similar errors. In addition, the Authority should establish quality control review procedures to ensure proper monitoring of compliance with the requirements related to tenant eligibility. Manaciement Response: GHA will ensure that adequate systems and controls are in place to ensure that all of the eligibility requirements are being followed. GHA has corrected the deficiencies noted in the tested files and will be performing reviews of the remaining universe to address possible similar errors. GHA will also procure an outside quality control company to review files and ensure compliance with eligibility requirements in an ongoing fashion. Additionally, standard operating procedures have been put into place to ensure that alt pertinent forms and paperwork are signed and filed. Th Intake department will ensure that all information needed for eligibility is collected during the Intake process and will be signed off by management when the files are transferred to Public Hous Management Public Housing management is a fairly new staff of 2-3 years. Previous trainings have been provided but additional training will be provided to address the issues that arose from this audit. Staff is scheduled for training on April 28, 2026 on the correct verification methods to improve the accuracy of annual and adjusted income determinations.

2024-001

Housing Voucher Cluster Other matters required to be reported Under the Uniform Guidance Condition: The Authority’s selection for SEMAP Indicator 6 HQS Enforcement did not have the correct sample based on the population of failed inspection during the year. As a result the testing performed for Indicator 6 was not in compliance with HUD program requirements. Context: SEMAP is used by HUD to evaluate the performance of housing authorities administering the HCV program. Housing authorities are required to maintain documentation supporting the data used in their SEMAP self-assessments. As part of our audit procedures over the Housing Voucher Cluster, we requested documentation supporting the SEMAP indicators reported by the Authority. Management was unable to provide sufficient documentation to support the self-assessed score. Criteria: Per 24 CFR 985, for HQS enforcement, the Authority is required to select and test an annual sample of failed inspection at a minimum sample sized based on the universe size of annual failed inspections. In addition, the Authority is required to establish and maintain records sufficient to support compliance with HUD program requirements, as well as establishing internal controls to ensure compliance with applicable regulations. Cause: The Authority did not have effective procedures in place to ensure that documentation supporting SEMAP indicators and self-assessed scoring was reviewed. Effect: The Authority’s is not in compliance HUD program requirements related to SEMAP testing for Indicator 6 HQS Enforcement. Questioned Costs: Unknown. Auditor Recommendations: The Authority should implement procedures to review and retain SEMAP supporting documentation prior to certification, ensure records are retained in accordance with HUD and federal record-retention requirements, and provide training to staff responsible for SEMAP reporting to promote ongoing compliance. Management Response: See Corrective Action Plan.

Housing Voucher Cluster Other matters required to be reported Condition: The Authority's selection for SEMAP Indicator 6 HQS Enforcement did not have the correct sample based on the population of failed inspection during the year. As a result the testing performed for indicator 6 was not in compliance with HUD program requirements. Context: SEMAP is used by HIJD to evaluate the performance of housing authorities administering the HCV program. Housing authorities are required to maintain documentation supporting the data used in their SEMAP self- assessments. As part of our audit proceaures over the Housing Voucher Cluster, we requested documentation supporting the SEMAP indicators reported by the Authority. Management was unable to provide sufficient documentation to support the self-assessed score. Criteria: Per 24 CFR 985, for HQS enforcement, the Authority is required to select and test an annual sample of failed inspection at a minimum sample sized based on the universe size of annual failed inspections. In addition, the Authority is required to establish and maintain records sufficient to support compliance with HUD program requirements, as well as establishing internal controls to ensure compliance with applicable regulations. Cause: The Authority did not have effective procedures in place to ensure that documentation supporting SEMAP indicators and self-assessed scoring was reviewed. Effect: The Authority's is not in compliance HUD program requirements related to SEMAP testing for Indicator 6 HQS Enforcement. Questioned Costs: Unknown. Auditor Recommendations: The Authority should implement procedures to review and retain SEMAP supporting documentation prior to certffication, ensure records are retained in accordance with HUD and federal record-retention requirements, and provide training to staff responsible for SEMAP reporting to promote ongoing compliance. Manaciement Response: For SEMAP Indicator 6 (HQS Enforcement), PHAs must sample HQS failure records to verify timely correction or abatement. Sample sizes are determined based on the total number of failed HQS inspections (the "universe") from the last fiscal year HUD. Due to an oversight, staff incorrectly calculated the number of inspections to be sampled during the review of indicator 6, HQS Enforcement. The sample reviewed was smaller than the required 15 Going Forward, GHA will ensure compliance with HUD program requirements related to SEMAP testing and to prevent recurrence, GHA will implement a secondary review of all SEMAP sampling calculations to ensure accuracy. Name(s) of the contact person(s) responsible for corrective action: Maria Godwin Planned completion date for corrective action plan: This will be implemented immediately.

2024-001 Eligibility Housing Voucher Cluster Significant deficiency in internal control Other Matter to be Reported Under the Uniform Guidance Condition: Out of a population of approximately 1,700 for Housing Voucher Cluster, 41 tenant files were tested and 4 files had the following deficiencies: • Two files had incorrect payment standard; • One file had incorrect income calculation standard; and • One file was missing an EIV report for the annual recertification. Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Context: The auditor randomly selected 41 tenant files out of the population which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority does not have adequate systems and controls in place to ensure all of the eligibility requirements are being followed. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown Auditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. Management Response: See the Corrective Action Plan in this report

2024-001 Eligibility Housing Voucher Cluster Significant deficiency in internal control Other Matter to be Reported Under the Uniform Guidance Condition: Out of a population of approximately 1,700 for Housing Voucher Cluster, 41 tenant files were tested and 4 files had the following deficiencies: • Two files had incorrect payment standard; • One file had incorrect income calculation standard; and • One file was missing an EIV report for the annual recertification. Auditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor's sample. Action Taken; GHA is currently updating its Standards Operating Procedures and will continue to provide training and guidance to all staff to ensure that all transactions are implemented correctly, including payment standards, income calculations and to ensure all necessary documentation including EIV is placed in the participant's files. Name(s) of the contact person(s) responsible for corrective action: Maria Godwin Planned completion date for corrective action plan: GHA staff has been reminded to double check their work to avoid human errors. Additionally all training will be completed by August 2025.

2023-002

2024-002 Eligibility Public and Indian Housing Significant deficiency in internal control Other Matter to be Reported Under the Uniform Guidance Condition: Out of a total tenant population of approximately 430 for Public and Indian Housing, 44 tenant files were tested and 8 files had the following deficiencies: • Six files had incorrect or missing flat rent option sheets; • One file was missing a custody information; and • One file had incorrect income calculation. Criteria: The Authority’s ACOP and 24 CFR 960.257 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding complete and accurate tenant files for all public housing sites. Context: The auditor randomly selected 44 tenants out of the population, which we consider to be a statistically valid sample size, for testing tenant files for eligibility. The auditor reviewed the tenant file and support to ensure controls over compliance were operating effectively. Cause: Public housing sites do not have adequate systems and controls in place to ensure all of the eligibility requirements are being followed. Effect: The Authority is not in full compliance with all of the HUD requirements regarding eligibility and tenant recertification which could result in incorrect amount of rental assistance being provided. Questioned Costs: Unknown Auditor Recommendations: The Authority should correct the deficiencies noted in the tested files and perform reviews of the remaining universe, for consideration of similar errors. In addition, the Authority should establish quality control review procedures to ensure proper monitoring of compliance with the requirements related to tenant eligibility. Management Response: See the Corrective Action Plan in this report.

2024-002 Eligibility Public and Indian Housing Significant deficiency in internal control Other Matter to be Reported Under the Uniform Guidance Condition: Out of a total tenant population of approximately 430 for Public and Indian Housing, 44 tenant files were tested and 8 files had the following deficiencies: • Six files had incorrect or missing flat rent option sheets ; • One file was missing a custody information; and • One file had incorrect income calculation. Auditor Recommendations: The Authority should correct the deficiencies noted in the tested files and perform reviews of the remaining universe, for consideration of similar errors. In addition, the Authority should establish quality control review procedures to ensure proper monitoring of compliance with the requirements related to tenant eligibility. Action Taken: Updates were made to the flat rent option sheet and they have been placed in all files. The missing custody information has been obtained and placed in the folder. GHA will continue to provide training and guidance to all staff to ensure that all transactions are implemented correctly, including income calculation standard, and to ensure that all necessary documentation is placed in the participant's files. Name(s} of the contact person(s) responsible for corrective action: Odelia Williams, Director of Public Housing Planned completion date for corrective action plan: GHA staff completed the corrections and has been reminded to double check their work to avoid human error. Additionally, all training will be completed by August 2025.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Choice Voucher Program Assistance Listing Number: 14.871 Federal Award Identification Number and Year: TX017 – 2023 Award Period: July 1, 2022 through June 30, 2023 Type of Finding:  Significant Deficiency in Internal Control over Compliance  Other Matters Criteria or Specific Requirement: Most PHAs devise their own application forms that are filled out by the PHA staff during an interview with the tenant. The head of the household signs (a) one or more release forms to allow the PHA to obtain information from third parties; (b) a federally prescribed general release form for employment information; and (c) a privacy notice. Under some circumstances, other members of the family are required to sign these forms (24 CFR sections 5.212 and 5.230). The PHA must do the following: (1) 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 (24 CFR sections 5.230, 5.609, and 982.516). (2) 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 (24 CFR section 982.516). (3) Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516). (4) Select tenants from the HCVP waiting list (see III.N.1, “Special Tests and Provisions – Selection from the Waiting List”) (24 CFR sections 982.202 through 982.207). (5) Reexamine 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 section 982.516). Prior Year Finding: This finding is a repeat finding in the immediate prior year. Prior year finding number was 2022-002. Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that eligibility requirements were being met. Questioned Costs: None Context: Out of 40 tenants tested, there were exceptions in 9 tenant files. Our sample was a statistically valid sample.  One instance where there was a difference of income reported on the HUD-50058 and the third party verification  One instance where Medicare expenses were not included as a medical allowance  Seven instances where annual recertifications were not processed annually Cause: The Authority does not have controls in place to ensure it is meeting all eligibility requirements set by HUD. Effect: The Authority is not in compliance with program requirements over eligibility. Recommendation: The Authority should implement processes to ensure that all documentation is received and that the correct inputs are being accurately reported on the HUD-50058. View of Responsible Officials: Management agrees with the finding.

Housing Choice Vouchers - CFDA No. 14.871 - Eligibility Recommendation: The Authority should implement processes to ensure that all documentation is received and that the correct inputs are being accurately reported on the HUD-50058. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The errors found where: Income was miscalculated. GHA'S staff will continue to have refresher trainings to ensure that all documentation is correct and properly reported on the HUD-50058 Name(s) of the contact person(s) responsible for corrective action: Maria Godwin Planned completion date for corrective action plan: Ongoing

2022-002

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Choice Voucher Program Assistance Listing Number: 14.871 Federal Award Identification Number and Year: TX017 – 2023 Award Period: July 1, 2022 through June 30, 2023 Type of Finding:  Significant Deficiency in Internal Control over Compliance  Other Matters Criteria or Specific Requirement: For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Prior Year Finding: This finding is a repeat finding in the immediate prior year. Prior year finding number was 2022-003. Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that HQS inspection requirements were being met. Questioned Costs: None Context: Of the 40 annual HQS inspections tested, it was noted:  1 instance where a unit failed inspection and was not reinspected within 30 days of the initial failure date  2 instances where the passed inspection of a previously failed unit was not properly documented  2 instances where the Authority failed to process abatements for units that failed inspections  1 instance where the Authority failed to process termination in a timely manner. Of the 11 quality control re-inspections tested, it was noted that:  7 quality control inspections were not performed within 90 days of the original inspection date.  1 instance where the quality control inspection was performed by the same inspection of the original inspection. Our sample was a statistically valid sample. Cause: The Authority does not have adequate internal controls designed to ensure that HQS inspection requirements were being met. Effect: The Authority is not in compliance with program requirements over HQS Inspections. Recommendation: The Authority should implement processes to ensure all HQS re-inspections are completed timely and that there is proper documentation of approved extensions and abatements. View of Responsible Officials: Management agrees with the finding.

Housing Choice Vouchers - CFDA No. 14.871 - Special Tests - HQS Inspections Recommendation: The Authority should implement processes to ensure all HQS reinspections are completed timely and that there is proper documentation of approved extensions and abatements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: This is complete. GHA monitors the inspections to ensure they are current. GHA runs PIC inspection SEMAP reports monthly to ensure inspection dates are tracked thoroughly. GHA will continue to conduct and submit all inspections timely. Name(s) of the contact person(s) responsible for corrective action: Maria Godwin Planned completion date for corrective action plan: Ongoing

2022-003

2022-002 HCVP Eligibility Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Choice Voucher Program Assistance Listing Number: 14.871 Federal Award Identification Number and Year: TX017 ? 2022 Award Period: July 1, 2021 through June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or Specific Requirement: Most PHAs devise their own application forms that are filled out by the PHA staff during an interview with the tenant. The head of the household signs (a) one or more release forms to allow the PHA to obtain information from third parties; (b) a federally prescribed general release form for employment information; and (c) a privacy notice. Under some circumstances, other members of the family are required to sign these forms (24 CFR sections 5.212 and 5.230). The PHA must do the following: (1) 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 (24 CFR sections 5.230, 5.609, and 982.516). (2) 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 (24 CFR section 982.516). (3) Determine income eligibility and calculate the tenant?s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516). (4) Select tenants from the HCVP waiting list (see III.N.1, ?Special Tests and Provisions ? Selection from the Waiting List?) (24 CFR sections 982.202 through 982.207). (5) Reexamine 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 section 982.516). Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that eligibility requirements were being met. Questioned Costs: $1,725 Context: Out of 40 tenants tested, we noted 5 instances where there was a difference between the third-party verification and what was reported on the HUD 50058, all of which could have a potential impact on the HAP calculation. Our sample was a statistically valid sample. ? - One instance of missing third party verification information of income. ? - Four instances of incorrect income reported on the HUD 50058. ? - Two instances of incorrect reporting / deduction of expenses on the HUD 50058 Cause: The Authority does not have controls in place to ensure it is meeting all eligibility requirements set by HUD. Effect: The Authority is not in compliance with program requirements over eligibility. Recommendation: The Authority should implement processes to ensure that all documentation is received and that the correct inputs are being accurately reported on the HUD-50058. View of Responsible Officials: Management agrees with the finding.

2022-002 Housing Choice Vouchers - Assistance Listing No. 14.871 - Eligibility Recommendation: The Authority should implement processes to ensure that all documentation is received and that the correct inputs are being accurately reported on the HUD-50058. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: During this time GHA's HCV program was extremely short staffed and GHA was using temporary employees to assist in program delivery. Specifically, the department suffered two staff- members deaths, one family emergency that removed dedicated staff from this task, and two resignations. GHA has hired and trained new staff to ensure that recertifications are being performed annually for all tenants as applicable. The annual recertifications will be three months ahead by the end of 2023. Name(s) of the contact person(s) responsible for corrective action: Maria Godwin Planned completion date for corrective action plan: GHA has hired and trained new staff and will conduct additional refresher training courses for existing staff focusing on accuracy. This will be complete by August 2023. GHA annual recertification's are currently being completed timely and will be three months ahead by the end of 2023.

2022-003 HCVP HQS Inspections Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Choice Voucher Program Assistance Listing Number: 14.871 Federal Award Identification Number and Year: TX017 ? 2022 Award Period: July 1, 2021 through June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or Specific Requirement: The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family?s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that HQS inspection requirements were being met. Questioned Costs: None Context: Of the 40 annual HQS inspections tested, it was noted that 8 out of 40 units were not inspected on a biennial basis. Of the 40 failed HQS inspection tested, it was noted that 3 units were not reinspected within 30 days of the initial fail date. Our sample was a statistically valid sample. Cause: The Authority does not have adequate internal controls designed to ensure that HQS inspection requirements were being met. Effect: The Authority is not in compliance with program requirements over HQS Inspections. Recommendation: The Authority should implement processes to ensure all HQS inspections are completed timely. View of Responsible Officials: Management agrees with the finding.

2022-003 Housing Choice Vouchers -Assistance Listing No. 14.871 - Special Tests - HQS Inspections Recommendation: The Authority should implement processes to ensure all HQS biennial and re-inspections are completed timely and that there is proper documentation of approved extensions and abatements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: During this time GHA was short staffed and had a large number of initial inspections which are necessary to execute HAP contracts timely and to ensure adequate lease up. This coupled with the requirement for routine regular inspections created a large number of inspections at one time. During that time reports were run monthly to identify inspection requirement dates. Currently, GHA is caught up with inspections and inspections are three months ahead. Going forward, GHA will run the inspection reports twice a month to ensure inspection dates are not missed. Name(s) of the contact person(s) responsible for corrective action: Maria Godwin Planned completion date for corrective action plan: This is complete. GHA has hired and trained a new inspector and all inspections are current and three months ahead. GHA will run the inspection ad-hoc report twice a month to ensure inspection dates are tracked thoroughly. GHA will continue to conduct and submit all inspections timely.

2019 ? 001 Federal agency: U.S. Department of Housing and Urban Development Federal program title: Public and Indian Housing CFDA Number: 14.850 Award Period: July 1, 2018 ? June 30, 2019 Compliance Requirement: Eligibility Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: 24 CFR section 960.259 states that for both family income examinations and reexaminations, the PHA must 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. Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure compliance with tenant eligibility requirements. Questioned costs: Unknown Context: During our testing of a sample of 25 Public and Indian Housing tenant files for eligibility purposes, it was noted that 2 files did not comply with eligibility requirements: ? 1 file out of 25 selected did not include a zero income verification form. ? 1 file out of 25 selected did not have accurate income reported on the HUD-50058. Cause: Management did not follow established procedures as documented in its ACOP to ensure that it meets eligibility requirements. Effect: The Authority is not in compliance with federal regulations regarding eligibility. The amount of tenant rent could be incorrect based on missing or inaccurate information.Repeat Finding: This finding is a repeat finding from the immediate prior year. Prior year finding number was 2018-001. Recommendation: We recommend that management review their controls for retrieving and submitting tenant information and establish a method that ensures compliance. Views of responsible officials: There is no disagreement with the audit finding.

As a result of the audit finding, GHA will conduct additional refresher training on income calculations and how to correctly complete and record income on HUD-50058. GHA is currently in the process of selecting a training company to conduct additional supplemental refresher-training course for rent calculations for Public House management staff.

2018-001

2019 ? 002 Federal agency: U.S. Department of Housing and Urban Development Federal program title: Section 8 Housing Choice Voucher Program CFDA Number: 14.871 Award Period: July 1, 2018 ? June 30, 2019 Compliance Requirements: Special Tests ? HQS Annual Inspections and Quality Control (QC) Inspections Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: 24 CFR sections 982.158(d) and 982.405(b) states that the PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control (QC) re-inspections within 3 months of original annual inspection and performed by an inspector who is different from who performed the annual inspection. Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure compliance with Annual HQS and QC Inspection requirements. Questioned costs: Unable to determine Context: During our testing of a sample of 40 HCVP tenant files for eligibility and annual HQS inspection purposes and 24 HCVP Quality Control (QC) inspections the following exceptions were noted:: ? 1 file out of 40 tenant files selected included a unit that was not inspected on an annual basis. ? 5 QC inspections out of 24 selected were not performed within 3 months of the original inspection ? 4 QC inspections out of 24 selected were not performed by an inspector that was different than the inspector on the original inspection Cause: Audit procedures in the current period under review indicated an overall deficiency in the controls surrounding obtaining the proper documentation to meet eligibility requirements, the timely completion of annual HQS inspections and the completion of QC inspections in compliance with requirements Effect: The Authority is not in compliance with federal regulations regarding HQS annual inspections and QC inspections. Recommendation: We recommend that management review their controls for HQS annual inspections and QC inspections to establish a method that ensures compliance. Views of responsible officials: There is no disagreement with the audit finding.

GHA was severely under staffed in the inspections department during that time as GHA explained during the audit. GHA lost a longtime inspector, an inspection's clerk, and had turnover of three new inspectors during this time. GHA has hired and retained an additional full-time inspector and the inspections supervisor is now responsible for scheduling all QC inspections. The noted deficiencies were corrected.

GSA_MIGRATION

GSA_MIGRATION