2024 – 001
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Voucher Cluster
Assistance Listing Number: 14.871 / 14.879
Award Period: July 1, 2023 through June 30, 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: Most PHAs devise their own application forms that are filled out by the PHA staff during an interview with the tenant. The head of the household signs (a) one or more release forms to allow the PHA to obtain information from third parties; (b) a federally prescribed general release form for employment information; and (c) a privacy notice. Under some circumstances, other members of the family are required to sign these forms (24 CFR sections 5.212 and 5.230).
The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income; (2) the 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 (24CFR section 982.516). Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516). Select tenants from the HCVP waiting list (see III.N.1, “Special Tests and Provisions – Selection from the Waiting List”) (24 CFR sections 982.202 through 982.207). Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification (24 CFR section 982.516).
Condition: During the testing of the HCV tenant files for eligibility, we noted one instance where the income was not calculated correctly during annual examination.
Questioned costs: $210
Context: Out of the 40 files tested, one contained an error as noted above. The samples were
statistically valid samples.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority is not in compliance with federal regulations regarding the calculation of annual income for determination of eligibility for the program.
Repeat Finding: No
Recommendation: We recommend management should designate one person to review a sample of the files that have been recertified each month. The purpose of the review is to determine if the tenant files were prepared in accordance with internal policies and verify the compliance deficiencies have been corrected.
Views of responsible officials: There is no disagreement with the audit finding.
2024 – 001
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Voucher Cluster
Assistance Listing Number: 14.871 / 14.879
Award Period: July 1, 2023 through June 30, 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: Most PHAs devise their own application forms that are filled out by the PHA staff during an interview with the tenant. The head of the household signs (a) one or more release forms to allow the PHA to obtain information from third parties; (b) a federally prescribed general release form for employment information; and (c) a privacy notice. Under some circumstances, other members of the family are required to sign these forms (24 CFR sections 5.212 and 5.230).
The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income; (2) the 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 (24CFR section 982.516). Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516). Select tenants from the HCVP waiting list (see III.N.1, “Special Tests and Provisions – Selection from the Waiting List”) (24 CFR sections 982.202 through 982.207). Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification (24 CFR section 982.516).
Condition: During the testing of the HCV tenant files for eligibility, we noted one instance where the income was not calculated correctly during annual examination.
Questioned costs: $210
Context: Out of the 40 files tested, one contained an error as noted above. The samples were
statistically valid samples.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority is not in compliance with federal regulations regarding the calculation of annual income for determination of eligibility for the program.
Repeat Finding: No
Recommendation: We recommend management should designate one person to review a sample of the files that have been recertified each month. The purpose of the review is to determine if the tenant files were prepared in accordance with internal policies and verify the compliance deficiencies have been corrected.
Views of responsible officials: There is no disagreement with the audit finding.
2024 – 002
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Voucher Cluster
Assistance Listing Number: 14.871 / 14.879
Award Period: July 1, 2023 through June 30, 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and
982.405(b)).
Condition: During the testing of the HCV program tenant files for the Annual HQS, we noted one instance where the HQS inspection was not done within the 24-month regulatory period.
Questioned costs: None
Context: Out of the 40 files tested, one contained an error as noted above. The samples were
statistically valid samples.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority is not in compliance with federal regulations regarding the annual HQS.
Repeat Finding: No
Recommendation: We recommend that the housing authority designate an individual to assure HQS inspections are completed timely.
Views of responsible officials: The agency feels the item in question for the inspection date is outside the scope of the audit dates which are July 1, 2023, to June 30, 2024. Additionally, when the agency discovered the error in March 2023 during a time of restructuring a very high turnover department, we took immediate action in correcting the inspection to be compliant.
2024 – 002
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Voucher Cluster
Assistance Listing Number: 14.871 / 14.879
Award Period: July 1, 2023 through June 30, 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and
982.405(b)).
Condition: During the testing of the HCV program tenant files for the Annual HQS, we noted one instance where the HQS inspection was not done within the 24-month regulatory period.
Questioned costs: None
Context: Out of the 40 files tested, one contained an error as noted above. The samples were
statistically valid samples.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority is not in compliance with federal regulations regarding the annual HQS.
Repeat Finding: No
Recommendation: We recommend that the housing authority designate an individual to assure HQS inspections are completed timely.
Views of responsible officials: The agency feels the item in question for the inspection date is outside the scope of the audit dates which are July 1, 2023, to June 30, 2024. Additionally, when the agency discovered the error in March 2023 during a time of restructuring a very high turnover department, we took immediate action in correcting the inspection to be compliant.
2024 – 001
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Voucher Cluster
Assistance Listing Number: 14.871 / 14.879
Award Period: July 1, 2023 through June 30, 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: Most PHAs devise their own application forms that are filled out by the PHA staff during an interview with the tenant. The head of the household signs (a) one or more release forms to allow the PHA to obtain information from third parties; (b) a federally prescribed general release form for employment information; and (c) a privacy notice. Under some circumstances, other members of the family are required to sign these forms (24 CFR sections 5.212 and 5.230).
The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income; (2) the 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 (24CFR section 982.516). Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516). Select tenants from the HCVP waiting list (see III.N.1, “Special Tests and Provisions – Selection from the Waiting List”) (24 CFR sections 982.202 through 982.207). Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification (24 CFR section 982.516).
Condition: During the testing of the HCV tenant files for eligibility, we noted one instance where the income was not calculated correctly during annual examination.
Questioned costs: $210
Context: Out of the 40 files tested, one contained an error as noted above. The samples were
statistically valid samples.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority is not in compliance with federal regulations regarding the calculation of annual income for determination of eligibility for the program.
Repeat Finding: No
Recommendation: We recommend management should designate one person to review a sample of the files that have been recertified each month. The purpose of the review is to determine if the tenant files were prepared in accordance with internal policies and verify the compliance deficiencies have been corrected.
Views of responsible officials: There is no disagreement with the audit finding.
2024 – 001
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Voucher Cluster
Assistance Listing Number: 14.871 / 14.879
Award Period: July 1, 2023 through June 30, 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: Most PHAs devise their own application forms that are filled out by the PHA staff during an interview with the tenant. The head of the household signs (a) one or more release forms to allow the PHA to obtain information from third parties; (b) a federally prescribed general release form for employment information; and (c) a privacy notice. Under some circumstances, other members of the family are required to sign these forms (24 CFR sections 5.212 and 5.230).
The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income; (2) the 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 (24CFR section 982.516). Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516). Select tenants from the HCVP waiting list (see III.N.1, “Special Tests and Provisions – Selection from the Waiting List”) (24 CFR sections 982.202 through 982.207). Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification (24 CFR section 982.516).
Condition: During the testing of the HCV tenant files for eligibility, we noted one instance where the income was not calculated correctly during annual examination.
Questioned costs: $210
Context: Out of the 40 files tested, one contained an error as noted above. The samples were
statistically valid samples.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority is not in compliance with federal regulations regarding the calculation of annual income for determination of eligibility for the program.
Repeat Finding: No
Recommendation: We recommend management should designate one person to review a sample of the files that have been recertified each month. The purpose of the review is to determine if the tenant files were prepared in accordance with internal policies and verify the compliance deficiencies have been corrected.
Views of responsible officials: There is no disagreement with the audit finding.
2024 – 002
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Voucher Cluster
Assistance Listing Number: 14.871 / 14.879
Award Period: July 1, 2023 through June 30, 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and
982.405(b)).
Condition: During the testing of the HCV program tenant files for the Annual HQS, we noted one instance where the HQS inspection was not done within the 24-month regulatory period.
Questioned costs: None
Context: Out of the 40 files tested, one contained an error as noted above. The samples were
statistically valid samples.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority is not in compliance with federal regulations regarding the annual HQS.
Repeat Finding: No
Recommendation: We recommend that the housing authority designate an individual to assure HQS inspections are completed timely.
Views of responsible officials: The agency feels the item in question for the inspection date is outside the scope of the audit dates which are July 1, 2023, to June 30, 2024. Additionally, when the agency discovered the error in March 2023 during a time of restructuring a very high turnover department, we took immediate action in correcting the inspection to be compliant.
2024 – 002
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Voucher Cluster
Assistance Listing Number: 14.871 / 14.879
Award Period: July 1, 2023 through June 30, 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and
982.405(b)).
Condition: During the testing of the HCV program tenant files for the Annual HQS, we noted one instance where the HQS inspection was not done within the 24-month regulatory period.
Questioned costs: None
Context: Out of the 40 files tested, one contained an error as noted above. The samples were
statistically valid samples.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority is not in compliance with federal regulations regarding the annual HQS.
Repeat Finding: No
Recommendation: We recommend that the housing authority designate an individual to assure HQS inspections are completed timely.
Views of responsible officials: The agency feels the item in question for the inspection date is outside the scope of the audit dates which are July 1, 2023, to June 30, 2024. Additionally, when the agency discovered the error in March 2023 during a time of restructuring a very high turnover department, we took immediate action in correcting the inspection to be compliant.