Audit 1753

2022-002 - Determination of Contract Rents and Maintenance of Tenant Files Criteria: OMB Uniform Guidance Compliance Supplement for the Section 8 Housing Assistance Program requires that for all family income examinations and reexaminations, the Housing Authority must obtain and document third-party verification of (1) reported family income, (2) the value of assets, (3) expenses related to deductions, and (4) other factors that affect the determination of adjusted income or income-based rent at least once every 12 months. The program also includes other non-financial eligibility requirements, including required unit inspections on an annual basis. Condition: • We did not note any evidence of unit inspections in the 40 files reviewed. • We noted 8 files out of 40 tested did not contain sufficient income verification documentation. • We noted 5 files out of 40 tested did not have an accurately calculated rent and HAP. • We noted 2 files out of 40 tested did not receive a timely recertification. Cause: Backlog of recertifications was created by turnover issues and lack of management oversight in the prior year(s). Housing Authority has worked to get all files back up to date. Effect: Tenant rental charges are determined based on 30% of their adjusted income total. Improper verification of income allows for misreporting of income which may affect the rental income received by the Housing Authority and can potentially affect their Housing Assistance receipts and future federal funding. Housing unit conditions were not inspected or reviewed by the Housing Authority. Questioned Costs: Undetermined Recommendation: We recommend that Housing Authority work to immediately perform proper recertifications for all tenants for which have been done incorrectly or not performed at all. We recommend the Housing Authority perform inspections for all units annually as required. Views of Responsible Officials and Planned Corrective Action: The Housing Authority believes they have all files up to date and with sufficient supporting documentation into 2023. The Housing Authority staff also plans to take continuing education courses on the management of the RAD program. The Housing Authority plans to inspected all units prior to the end of 2023.

2022-002 - Determination of Contract Rents and Maintenance of Tenant Files Criteria: OMB Uniform Guidance Compliance Supplement for the Section 8 Housing Assistance Program requires that for all family income examinations and reexaminations, the Housing Authority must obtain and document third-party verification of (1) reported family income, (2) the value of assets, (3) expenses related to deductions, and (4) other factors that affect the determination of adjusted income or income-based rent at least once every 12 months. The program also includes other non-financial eligibility requirements, including required unit inspections on an annual basis. Condition: • We did not note any evidence of unit inspections in the 40 files reviewed. • We noted 8 files out of 40 tested did not contain sufficient income verification documentation. • We noted 5 files out of 40 tested did not have an accurately calculated rent and HAP. • We noted 2 files out of 40 tested did not receive a timely recertification. Cause: Backlog of recertifications was created by turnover issues and lack of management oversight in the prior year(s). Housing Authority has worked to get all files back up to date. Effect: Tenant rental charges are determined based on 30% of their adjusted income total. Improper verification of income allows for misreporting of income which may affect the rental income received by the Housing Authority and can potentially affect their Housing Assistance receipts and future federal funding. Housing unit conditions were not inspected or reviewed by the Housing Authority. Questioned Costs: Undetermined Recommendation: We recommend that Housing Authority work to immediately perform proper recertifications for all tenants for which have been done incorrectly or not performed at all. We recommend the Housing Authority perform inspections for all units annually as required. Views of Responsible Officials and Planned Corrective Action: The Housing Authority believes they have all files up to date and with sufficient supporting documentation into 2023. The Housing Authority staff also plans to take continuing education courses on the management of the RAD program. The Housing Authority plans to inspected all units prior to the end of 2023.