Audit 23038

Federal Program ? U.S. Department of Housing and Urban Development AL #14.850 ? Significant Deficiency Criteria ? The Program requires the Agency to obtain and document in the family file third party verification of: (1) reported family annual income; (2) value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent, for both family income examinations and reexaminations. Condition ? During our review of 15 files, we found one file without support for medical expense deductions. Cause ? In one instance, the Agency did not maintain supporting documentation for medical expense deductions. Context ? We reviewed a sample of 15 files of the Agency?s 144 outstanding tenant files for eligibility requirements. Effect ? Annual income amount for the family reported by the Agency was understated, resulting in a lower total tenant payment (TTP). Repeat Finding ? Not a repeat finding. Recommendation ? We recommend that tenant file review procedures be established and ensure all required documentation is available to support the tenant?s income and eligibility. Views of Responsible Officials and Planned Corrective Actions ? We are aware of the issue and have taken subsequent steps to ensure compliance with this requirement.

Federal Program ? U.S. Department of Housing and Urban Development AL #14.850 ? Significant Deficiency Criteria ? The Agency?s internal control policy over eligibility under its Public and Indian Housing Program is to perform a quality control review over a sample of its tenant file population. Condition ? During our review of the Agency?s internal control policy over Public and Indian Housing tenant files, it was noted that the Authority did not perform its internal control review over tenant files during the year. Cause ? Lack of oversight from management. Context ? We noted a quality control review was not performed during the year ended June 30, 2022. Effect ? If the tenants do not have independent evaluations performed, there leaves the potential for errors in determining eligibility for housing assistance. Repeat Finding ? Not a repeat finding. Recommendation ? We recommend the Agency follow its policy on performing a quality control review over a sample of its tenant file population on an annual basis. Views of Responsible Officials and Planned Corrective Actions ? The Agency is aware of the issue and has taken subsequent steps to ensure compliance with the requirement.

Federal Program ? U.S. Department of Housing and Urban Development AL #14.850 ? Significant Deficiency Criteria ? The Program requires the Agency to obtain and document in the family file third party verification of: (1) reported family annual income; (2) value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent, for both family income examinations and reexaminations. Condition ? During our review of 15 files, we found one file without support for medical expense deductions. Cause ? In one instance, the Agency did not maintain supporting documentation for medical expense deductions. Context ? We reviewed a sample of 15 files of the Agency?s 144 outstanding tenant files for eligibility requirements. Effect ? Annual income amount for the family reported by the Agency was understated, resulting in a lower total tenant payment (TTP). Repeat Finding ? Not a repeat finding. Recommendation ? We recommend that tenant file review procedures be established and ensure all required documentation is available to support the tenant?s income and eligibility. Views of Responsible Officials and Planned Corrective Actions ? We are aware of the issue and have taken subsequent steps to ensure compliance with this requirement.

Federal Program ? U.S. Department of Housing and Urban Development AL #14.850 ? Significant Deficiency Criteria ? The Agency?s internal control policy over eligibility under its Public and Indian Housing Program is to perform a quality control review over a sample of its tenant file population. Condition ? During our review of the Agency?s internal control policy over Public and Indian Housing tenant files, it was noted that the Authority did not perform its internal control review over tenant files during the year. Cause ? Lack of oversight from management. Context ? We noted a quality control review was not performed during the year ended June 30, 2022. Effect ? If the tenants do not have independent evaluations performed, there leaves the potential for errors in determining eligibility for housing assistance. Repeat Finding ? Not a repeat finding. Recommendation ? We recommend the Agency follow its policy on performing a quality control review over a sample of its tenant file population on an annual basis. Views of Responsible Officials and Planned Corrective Actions ? The Agency is aware of the issue and has taken subsequent steps to ensure compliance with the requirement.