HOUSING AUTHORITY OF THE CITY OF PUEBLO

U.S. Department of Housing and Urban Development - CFDA #14.850 Public and Indian Housing Applicable Federal Award Number and Year – Public and Indian Housing - 2023 Eligibility Significant Deficiency in Internal Control over Compliance Criteria – The Program requires the Authority to determine eligibility of participants of the program through annual and interim review of participant information. Condition – During our testing, we identified 5 participant files in which the recertification /move-in checklists were not signed by Authority staff. Questioned Costs – None Reported. Context/Sampling – A non-statistical sample of 60 participants were selected for testing. Five out of the 60 participant files had recertification / move-in checklists that were not signed by Authority staff. Effect – Failure to implement and maintain a proper control process could result in incorrect eligibility determinations for individuals that are being re-examined and no longer eligible. Cause – Due to staff turnover in the compliance department. Repeat Finding from Prior Year – No. Recommendation – The Authority should implement internal controls to ensure that all recertification / move-in checklists are signed by Authority staff. Views of Responsible Officials – Management agrees with the finding.

U.S. Department of Housing and Urban Development - CFDA #14.871 Section 8 Housing Choice Vouchers Applicable Federal Award Number and Year – Section 8 Housing Choice Vouchers - 2023 Activities Allowed or Unallowed, Allowable Costs and Cost Principles, Eligibility, Special Tests and Provisions – Housing Quality Standards Inspections Significant Deficiency in Internal Control over Compliance and Immaterial Instance of Noncompliance Criteria – The Program requires the Authority to determine eligibility of participants of the program through annual and interim review of participant information. In addition, the Authority must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS). Condition – The Authority was not able to locate one of the participant files that we selected for testing. Questioned Costs – None Reported. Context/Sampling – A non-statistical sample of 40 participants were selected for testing, of which 1 participant file could not be located, thus an additional 21 participants were selected for testing to bring the total to 60 tested. 1 out of the 61 participant files was not able to be located. Effect – Failure to implement and maintain a proper control process could result in incorrect eligibility determinations for individuals that are being re-examined and no longer eligible. Cause – During 2023, the Housing Choice Voucher Department moved physical locations. Also, during this time, all the historical paper files were being scanned for digital storage. During this process, paperwork for one of the participants’ re-certification and inspection were misplaced and not able to be located during audit fieldwork. Repeat Finding from Prior Year – No. Recommendation – The Authority should implement internal controls to ensure that all participant files are maintained. Views of Responsible Officials – Management agrees with the finding.