Audit 29611

Finding 2022-001 U.S. Department of Housing and Urban Development (HUD) Housing Voucher Cluster/Section 8 Housing Choice Voucher ? ALN 14.871 Eligibility Condition: During our review of HUD-50058, Family Report (HUD-50058) forms prepared by Elk County Housing Authority (Authority), we noted a lack of functioning internal controls with regards to the annual re-examination process. Criteria: The Authority is required to prepare and submit a HUD-50058 form each time the Authority completes an admission, annual reexamination, portability move-in, or other change of unit for a family. The form provides HUD and the Authority with vital eligibility data for each program participant such as family composition, family income, the assets and liabilities of program participants, and ultimately provides for the calculation of tenant rent and rental/housing assistance payments for each program participant. Cause: The Authority?s internal controls and procedures in place, did not ensure that the appropriate income support and/or medical deductions were obtained and used on the HUD-50058. Effect: HUD-50058 forms provide essential information to HUD and assist with the determination of program eligibility. In addition, the HUD-50058 form provides for the calculation of tenant rent and rental/housing assistance payments. A lack of functioning of internal controls could lead to inaccurate HUD-50058 forms. This could result in program participants or HUD being over- or under-charged tenant rent. We noted two instances where income support and/or medical deductions were not appropriately supported. In one of the instances, the insufficient income support and/or medical deductions caused tenant rent to be miscalculated. Questioned Costs: Unknown Recommendation: We recommend that the Authority implement procedures to ensure that the appropriate support is obtained and used. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding, see separate corrective action plan.

Finding 2022-001 U.S. Department of Housing and Urban Development (HUD) Housing Voucher Cluster/Section 8 Housing Choice Voucher ? ALN 14.871 Eligibility Condition: During our review of HUD-50058, Family Report (HUD-50058) forms prepared by Elk County Housing Authority (Authority), we noted a lack of functioning internal controls with regards to the annual re-examination process. Criteria: The Authority is required to prepare and submit a HUD-50058 form each time the Authority completes an admission, annual reexamination, portability move-in, or other change of unit for a family. The form provides HUD and the Authority with vital eligibility data for each program participant such as family composition, family income, the assets and liabilities of program participants, and ultimately provides for the calculation of tenant rent and rental/housing assistance payments for each program participant. Cause: The Authority?s internal controls and procedures in place, did not ensure that the appropriate income support and/or medical deductions were obtained and used on the HUD-50058. Effect: HUD-50058 forms provide essential information to HUD and assist with the determination of program eligibility. In addition, the HUD-50058 form provides for the calculation of tenant rent and rental/housing assistance payments. A lack of functioning of internal controls could lead to inaccurate HUD-50058 forms. This could result in program participants or HUD being over- or under-charged tenant rent. We noted two instances where income support and/or medical deductions were not appropriately supported. In one of the instances, the insufficient income support and/or medical deductions caused tenant rent to be miscalculated. Questioned Costs: Unknown Recommendation: We recommend that the Authority implement procedures to ensure that the appropriate support is obtained and used. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding, see separate corrective action plan.