Housing Authority of the City of Brownsville

Federal Program Titles: Section 8 Housing Choice Vouchers Federal Assistance Listing Numbers: 14.871 Noncompliance - E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority's files and on discussion with management, there were verification of income documents that were incorrectly calculated at the time of audit. Context: There are approximately 2,750 units. Of a sample size of thirty-five (35) tenant files, verification of income was incorrectly calculated in one (1) file. Our sample size is statistically valid. Known Questioned Costs: $2,403 Cause: There is a significant deficiency in internal controls over the compliance in the Section 8 Housing Choice Vouchers program for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers program is in non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority review and revise its internal control procedures to assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor on the inspection of tenant files and has made arrangements to comply with the Section 8 Housing Choice Vouchers program.

Federal Program Titles: Section 8 Housing Choice Vouchers & Emergency Housing Vouchers Federal Assistance Listing Numbers: 14.871 & 14. EHV Material Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: There are approximately 2,739 units. Of a sample size of forty-two (42) tenant files, the following information was unavailable for examination at the time of audit: HUD-9886 Authorization for Release of Information form was missing in eighteen (18) files Verification of income was missing in one (1) file Our sample size is statistically valid. Known Questioned Costs: $40,589 Cause: There is a material weakness in internal controls over the compliance in the Section 8 Housing Choice Vouchers and Emergency Housing Vouchers programs for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers and Emergency Housing Vouchers programs are in material non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor on the inspection of tenant files and has made arrangements to comply with the Section 8 Housing Choice Vouchers and Emergency Housing Vouchers programs.