ALTO HOUSING AUTHORITY

2024-008. Tenant Files – Housing Choice Vouchers Criteria: HUD guidelines on tenant file documentation and maintenance must be followed at all times. Condition: During my review of fifteen tenant files, I noted the following deficiencies: - Three files did not contain proof of citizenship (Form 214) - None of the files contained determination of rent reasonableness form. - One file was not certified on an annual basis. - Signed dwelling lease was not present in eight tenant files. Questioned Costs: None noted. Effect: Tenant files are incomplete and could have incorrect rent calculation. Cause: Unknown, as the current administration is not aware of the prior administrations process of managing the tenant files. Recommendation: I recommend that the Authority ensure that all tenant files are maintained properly, and supervisory reviews are performed to ensure completeness and accuracy. Management’s Response: The audit revealed missing critical documentation in Housing Choice Vouchers tenant files. Staff will be retrained on HUD’s file management requirements, and a standardized audit and review process has been introduced for both new tenant intakes and annual recertifications. Corrective efforts are underway to update and complete all current files.

2024-009 SEMAP Supporting Documentation Criteria: SEMAP indicators should be supported by sufficient documentation. Condition: I noted that all indicators on FY 2024, SEMAP certification could not be verified as they were either not supported by adequate documentation or no quality control work were performed to substantiate PHA’s response. Questioned Costs: None noted. Effect: Responses on SEMAP certification may not be an accurate representation of PHA’s FY 2024 submission. Cause: Proper internal control procedures relating to SEMAP were not performed or maintained for SEMAP certification. Recommendation: I recommend that the Authority implement and perfect the procedures necessary to provide accurate and complete supporting documentation for future SEMAP certification. Management’s Response: The auditor noted that the Authority did not maintain supporting documentation for the Section Eight Management Assessment Program (SEMAP). Management has revised the SEMAP documentation process, implemented a submission checklist, and created a backup retention system to ensure compliance with HUD requirements.

2023-009. Tenant Files – Housing Choice Vouchers Criteria: HUD guidelines on tenant file documentation and maintenance must be followed at all times. Condition: During my review of fifteen tenant files, I noted the following deficiencies:  Four files did not contain proof of citizenship (Form 214) and the lease agreement signed. No annual independent income verification was present in three tenant files. None of the files contained determination of rent reasonableness form. Two files did not have an re-inspection performed after the initial failed inspection. Questioned Costs: None noted. Effect: Tenant files are incomplete and could have incorrect rent calculation and documentation. Cause : Unknown, as the current administration is not aware of the prior administrations process of managing the tenant files. Recommendation: I recommend that the Authority ensure that all tenant files are maintained properly, and supervisory reviews are performed to ensure completeness and accuracy. Management’s Response: The audit revealed missing critical documentation in Housing Choice Vouchers tenant files. Staff will be retrained on HUD’s file management requirements, and a standardized audit and review process has been introduced for both new tenant intakes and annual recertifications. Corrective efforts are underway to update and complete all current files.

2023-010 SEMAP Supporting Documentation Criteria: SEMAP indicators should be supported by sufficient documentation. Condition: I noted that all indicators on FY 2023, SEMAP certification could not be verified as they were either not supported by adequate documentation or no quality control work were performed to substantiate PHA’s response. Questioned Costs: None noted. Effect: Responses on SEMAP certification may not be an accurate representation of PHA’s FY 2023 submission. Cause: Proper internal control procedures relating to SEMAP were not performed or maintained for SEMAP certification. Recommendation: I recommend that the Authority implement and perfect the procedures necessary to provide accurate and complete supporting documentation for future SEMAP certification. Management’s Response: The auditor noted that the Authority did not maintain supporting documentation for the Section Eight Management Assessment Program (SEMAP). Management has revised the SEMAP documentation process, implemented a submission checklist, and created a backup retention system to ensure compliance with HUD requirements.

2023-011. Late Submission Criteria: The Authority must submit the audited financial statement to REAC and the Federal Clearinghouse within 9 months of the fiscal year. Condition: I noted that the Authority did not submit the electronic transmission of their GAAP based audited Financial Data Schedule (FDS) to the Financial Assessment Subsystem of REAC and the Federal Clearinghouse within the 9 months of their year-end. Questioned Costs: None noted. Effect: As a result, the Authority did not comply with the HUD requirement of submitting the audit within the allotted time. Cause : The Authority was not required to have an audit performed in previous years due to the level of federal funding received. Effective FY 2023, the federal funding changed significantly due to the Authority absorbing Rusk Housing Authority Housing Choice Vouchers. However, it appears that the previous administration was not aware of this requirement to have an audit performed. Recommendation: I recommend that the Authority implement controls to ensure the audit is performed and submitted in a timely manner. Management’s Response: The financial statements were submitted to HUD after the required deadline. To prevent future delays, management has implemented a compliance calendar to track all reporting deadlines. Reports are now scheduled for internal review at least two weeks prior to submission to ensure timeliness.