City of South Tucson

Eligibility (Repeat Finding: 2024-101) Assistance Listing number and name 14.850 - Public and Indian Housing Federal Agency: U.S Department of Housing and Urban Development Compliance Requirement: Eligibility Questioned Costs: Unknown Criteria: In accordance with 24 CFR 5.601, Public Housing Agencies (PHAs) should maintain effective internal control policies and procedures to determine income eligibility requirements and calculate tenants' rent payments. Condition: The South Tucson Housing Authority did not have someone other than the preparer review and approve the eligibility determinations. Cause: The South Tucson Housing Authority lacked proper internal control over the tenants' eligibility determination process. Effect: There is an increased risk that eligibility determinations could contain errors that the South Tucson Housing Authority may not detect or correct in a timely manner. Recommendation: The South Tucson Housing Authority should establish policies and procedures to ensure that tenants' eligibility determinations will be reviewed and approved by an employee that is independent of the initial eligibility determination.

Eligibility (Repeat Finding: 2024-103) Assistance Listing number and name 14.871 - Section 8 Housing Choice Vouchers Federal Agency: U.S Department of Housing and Urban Development Compliance Requirement: Eligibility Questioned Costs: Unknown Criteria: In accordance with 24 CFR 5.601, Public Housing Agencies (PHAs) should maintain effective internal control policies and procedures to determine income eligibility requirements and calculate tenants' rent payments. Condition: The South Tucson Housing Authority did not have someone other than the preparer review and approve the eligibility determinations. Cause: The South Tucson Housing Authority lacked proper internal control over the tenants' eligibility determination process. Effect: There is an increased risk that eligibility determinations could contain errors that the South Tucson Housing Authority may not detect or correct in a timely manner. Recommendation: The South Tucson Housing Authority should establish policies and procedures to ensure that tenants' eligibility determinations will be reviewed and approved by an employee that is independent of the initial eligibility determination.

Assistance Listing number and name 14.850 - Public and Indian Housing Federal Agency: U.S Department of Housing and Urban Development Compliance Requirement: Eligibility Questioned Costs: Unknown Criteria: In accordance with 24 CFR 5.601, Public Housing Agencies (PHAs) should maintain effective internal control policies and procedures to determine income eligibility requirements and calculate tenants' rent payments. Condition: The South Tucson Housing Authority did not have someone other than the preparer review and approve the eligibility determinations. Cause: The South Tucson Housing Authority lacked proper internal control over the tenants' eligibility determination process. Effect: There is an increased risk that eligibility determinations could contain errors that the South Tucson Housing Authority may not detect or correct in a timely manner. Recommendation: The South Tucson Housing Authority should establish policies and procedures to ensure that tenants' eligibility determinations will be reviewed and approved by an employee that is independent of the initial eligibility determination.

Assistance Listing number and name 14.850 - Public and Indian Housing Federal Agency: U.S Department of Housing and Urban Development Compliance Requirement: Eligibility Questioned Costs: Unknown Criteria: In accordance with 24 CFR 960.253, 960.257, and 960.259, Public Housing Agencies (PHAs) should 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. Condition: The South Tucson Housing Authority did not reexamine family income and composition at least once every 12 months. Cause: The City was short-staffed and has also failed its annual inspection due to tenants' continuous refusals. Effect: There is an increased risk that eligibility determinations could contain errors that the South Tucson Housing Authority may not detect or correct in a timely manner. Recommendation: The South Tucson Housing Authority should establish policies and procedures to ensure that tenants understand the consequences of refusing inspections, and that annual eligibility determinations are performed at least once every 12 months.

Assistance Listing number and name 14.871 - Section 8 Housing Choice Vouchers Federal Agency: U.S Department of Housing and Urban Development Compliance Requirement: Eligibility Questioned Costs: Unknown Criteria: In accordance with 24 CFR 5.601, Public Housing Agencies (PHAs) should maintain effective internal control policies and procedures to determine income eligibility requirements and calculate tenants' rent payments. Condition: The South Tucson Housing Authority did not have someone other than the preparer review and approve the eligibility determinations. Cause: The South Tucson Housing Authority lacked proper internal control over the tenants' eligibility determination process. Effect: There is an increased risk that eligibility determinations could contain errors that the South Tucson Housing Authority may not detect or correct in a timely manner. Recommendation: The South Tucson Housing Authority should establish policies and procedures to ensure that tenants' eligibility determinations will be reviewed and approved by an employee that is independent of the initial eligibility determination.

Assistance Listing number and name: All federal programs Questioned Costs: None Criteria: The City must prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the City's financial statements which must include the total federal awards expended. Condition: The City discovered an error related to the FAL No. 14.872 Public Housing Capital Fund, totaling $618,392. This amount was incorrectly reported as FAL No. 14.572 Comprehensive Improvement Assistance Program, totaling $436,171, in the original SEFA issued. Cause: Unknown Effect: The City's controls over the preparation of he SEFA were not adequate to ensure the completeness of expenditures reported. Recommendation: The City should develop policies and procedures whereby expenditures presented on the SEFA are reconciled to the City's general ledger.

2023-101 ELIGIBILITY (Repeat Finding: 2022-101) Assistance Listing number and name: 14.850 - Public and Indian Housing Federal Agency: U.S Department of Housing and Urban Development Compliance Requirement: Eligbility Questioned Costs: Unknown Criteria: In accordance with 24 CFR 5.601, Public Housing Agencies (PHAs) should maintain effective internal control policies and procedures to determine income eligibility requirements and calculate tenants' rent payments. Condition: The South Tucson Housing Authority did not have someone other than the preparer review and approve the eligibility determiniations. Cause: The South Tucson Housing Authority lacked proper internal control over the tenants' eligibility determination process. Effect: There is an increased risk that eligibility determinations could contain errors that the South Tucson Housing Authority may not detect or correct in a timely manner. Recommendation: The South Tucson Housing Authority should establish policies and procedures to ensure that tenants' eligibility determinations will be reviewed and approved by an employee that is independent of the initial eligibility determination.

2023-102 ELIGIBILITY (Repeat Finding: 2022-102) Assistance Listing number and name: 14.871 - Section 8 Housing Choice Vouchers Federal Agency: U.S Department of Housing and Urban Development Compliance Requirement: Eligbility Questioned Costs: Unknown Criteria: In accordance with 24 CFR 5.601, Public Housing Agencies (PHAs) should maintain effective internal control policies and procedures to determine income eligibility requirements and calculate tenants' rent payments. Condition: The South Tucson Housing Authority did not have someone other than the preparer review and approve the eligibility determiniations. Cause: The South Tucson Housing Authority lacked proper internal control over the tenants' eligibility determination process. Effect: There is an increased risk that eligibility determinations could contain errors that the South Tucson Housing Authority may not detect or correct in a timely manner. Recommendation: The South Tucson Housing Authority should establish policies and procedures to ensure that tenants' eligibility determinations will be reviewed and approved by an employee that is independent of the initial eligibility determination.