Transfer $78,786 ($22,601 $56,185) from its Family Self-Sufficiency account to its Housing Choice Voucher Program account for the overfunded and forfeited escrows.
Publication Report
2018-CH-1007 | September 25, 2018
The Housing Authority of the County of Lake, Grayslake, IL, Did Not Always Comply With HUD’s and Its Own Requirements Regarding the Administration of Its Housing Choice Voucher Program
We audited the Housing Authority of the County of Lake, IL’s Housing Choice Voucher Program based on the activities included in our 2018 annual audit plan and our analysis of risk factors related to the public housing agencies in Region 5’s jurisdiction… moreRelated Recommendations
Public and Indian Housing
- Status2018-CH-1007-001-BOpenClosedClosed on May 15, 2019$120,067.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
Support or reimburse its Housing Choice Voucher Program $120,067 from non-Federal funds for unsupported graduation disbursements.
- Status2018-CH-1007-001-COpenClosedClosed on May 15, 2019$12,460.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
Reimburse its Housing Choice Voucher Program $12,460 from non-Federal funds for the ineligible disbursements.
- Status2018-CH-1007-001-DOpenClosedClosed on September 27, 2019$3,801.00Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Transfer $3,801 from its Housing Choice Voucher Program account to its Family Self-Sufficiency account for the underfunded escrows.
- Status2018-CH-1007-001-EOpenClosedClosed on September 27, 2019$547.00Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Reimburse one participant, $547 from its Family Self-Sufficiency program for the underpaid graduation payment.
Implement procedures and controls to ensure that documentation required by HUD and the Authority’s own action plan is correctly completed, documented, and updated.
Ensure that its staff is appropriately trained and familiar with HUD’s requirements and its program action plan regarding the administration of its program to ensure that (1) participants’ individual training and services plans are complete and contain appropriate goals to assist the family in achieving self-sufficiency, (2) participants are notified of their escrow account balances at least annually, and (3) contracts of participation are complete and accurate.
Ensure that its newly created policies and procedures include a process for ensuring that (1) escrow balances are correctly calculated and disbursed, (2) escrow accounts and disbursements are fully supported, and (3) forfeited escrow account funds are returned to the Housing Choice Voucher Program as required.
- Status2018-CH-1007-001-IOpenClosedClosed on August 26, 2019$445,122.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
Determine the amount of the $445,122 in coordinator grant funds that were appropriately earned by the Authority for meeting requirements and paid to the coordinators while performing duties of the Family Self-Sufficiency program. The funds that are determined to be unearned should be reimbursed to HUD from non-Federal funds.
- Status2018-CH-1007-002-AOpenClosedClosed on August 26, 2019$20,795.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
Reimburse its program $20,450 from non-Federal funds ($10,331 $10,119 in associated administrative fees) for the overpayment of housing assistance due to inappropriate calculations of housing assistance.
- Status2018-CH-1007-002-BOpenClosedClosed on February 10, 2020$3,590.00Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Reimburse the appropriate households $3,590 from program funds for the underpayment of housing assistance due to inappropriate calculations.
- Status2018-CH-1007-002-COpenClosedClosed on May 15, 2019$18,638.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
Support or reimburse its program $18,638 from non-Federal funds for the unsupported payments of housing assistance cited in this finding.
- Status2018-CH-1007-002-DOpenClosedClosed on December 03, 2019$6,367.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
Enter into repayment agreements to pursue collection from the applicable households or reimburse its program $6,367 from non-Federal funds for the overpayment of housing assistance due to unreported or underreported income
- Status2018-CH-1007-002-EOpenClosedClosed on September 27, 2019$453,999.00Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Implement adequate procedures and controls to ensure that housing assistance payments are appropriately calculated and supported and that repayment agreements are created to recover overpaid housing assistance when unreported income is discovered during the examination process to ensure that $453,999 ($351,060 $102,939) in program funds is appropriately used for future payments.
- Status2018-CH-1007-003-AOpenClosedClosed on September 17, 2019$3,117.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
Reimburse its program $3,117 from non-Federal funds for the ineligible program expenditures.
- Status2018-CH-1007-003-BOpenClosedClosed on September 17, 2019$4,070.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
Support or reimburse its program $4,070 from non-Federal funds for the unsupported program expenditures.
- Status2018-CH-1007-003-COpenClosedClosed on December 20, 2018$9,170.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
Reimburse $9,170 from non-Federal funds to the owners of the Project-Based Voucher developments it inappropriately charged for the normal cost of doing business to administer the Project-Based Voucher contracts.
- Status2018-CH-1007-003-DOpenClosedClosed on September 17, 2019$10,861.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
Reimburse the Housing Choice Voucher Program $10,861 from its various programs for the bank service charges inappropriately charged to its Program.
- Status2018-CH-1007-003-EOpenClosedClosed on November 18, 2019$1,848.00Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Determine the appropriate allocations of the bank service charges and reimburse its Housing Choice Voucher Program from the various programs to ensure that $1,848 is available for appropriate program use.
Ensure that its staff is appropriately trained and familiar with HUD’s expenditure and allocation requirements.
Develop and implement adequate procedures and controls to ensure that program expenditures are for eligible and supported program costs and that costs are appropriately allocated to its various programs as required.
- Status2018-CH-1007-003-HOpenClosedClosed on February 10, 2020$5,770.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
Review the Authority’s Project-Based Voucher contracts, determine the total amount to be reimbursed to the project owners, and require the Authority to (1) remove all inappropriate language from its contracts, (2) issue amended contracts as necessary, and (3) reimburse the inappropriate charges to the applicable project owners from non-Federal funds.
Determine any remaining amounts for bank service charges inappropriately charged to the Housing Choice Voucher Program and ensure that the various programs reimburse the Program as appropriate for all bank service charges not appropriately allocated.
Determine whether the rent charged to the Housing Choice Voucher Program for the Family Self-Sufficiency program office space in the Authority’s main office and in its public housing property is appropriate and reasonable.
- Status2018-CH-1007-003-KOpenClosedClosed on December 13, 2019$40,656.00Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Require the Authority to reimburse its Housing Choice Voucher Program from non-Federal funds for any amounts determined not to be reasonable to ensure that $40,656 in program funds is available for appropriate program use.
Require the Authority to allocate any rents determined to be reasonable between its Housing Choice Voucher Program and Public Housing Family Self-Sufficiency program and require the Authority to reimburse its Housing Choice Voucher Program from its public housing program any amounts that should have been allocated among the programs.