Audit 338886

2024-004 Eligibility and Housing Assistance Payments – Significant Deficiency Federal Program U.S. Department of Housing and Urban Development AL #14.871 & 14.879 Grant Award No. ND031-Housing Choice Vouchers & ND031-Mainstream Vouchers Grant Award Year 2024 Criteria In accordance with 24 CFR sections 982.201, 982.515 and 982.516, the Authority must have proper supporting documentation to determine income eligibility and tenant’s rent payment. In accordance with 24 CFR section 982.516, the Authority must 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. Condition During our testing of 40 tenant files, we found two files that did not contain third-party verification for income. In both scenarios, the income from the prior year annual recertification was used for the annual or interim recertification, in relation to the check sampled, without obtaining the third-party verification. We also found two files that contained incorrect HAP payments. One instance was due to the tenant moving addresses halfway through the month and the full HAP payment was not paid back to HUD. The second instance was due to an incorrect income calculation resulting in incorrect HAP payments. Context We reviewed 40 tenant files out of an average of 679 vouchers a month. Effect Authority may be charging incorrect rental rate per approved policies Questioned Costs None. Cause Proper eligibility documentation is not being prepared and maintained in all tenant files. Repeat Finding Not a repeat finding. Recommendation We recommend tenant files should be maintained in an orderly fashion and all required documentation should be kept in the appropriate file. We also recommend that the Authority get third party verification when approaching an annual recertification at the minimum. Views of Responsible Officials Management will continue to emphasize to staff that applicable regulations and policies be followed to ensure compliance.

2024-004 Eligibility and Housing Assistance Payments – Significant Deficiency Federal Program U.S. Department of Housing and Urban Development AL #14.871 & 14.879 Grant Award No. ND031-Housing Choice Vouchers & ND031-Mainstream Vouchers Grant Award Year 2024 Criteria In accordance with 24 CFR sections 982.201, 982.515 and 982.516, the Authority must have proper supporting documentation to determine income eligibility and tenant’s rent payment. In accordance with 24 CFR section 982.516, the Authority must 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. Condition During our testing of 40 tenant files, we found two files that did not contain third-party verification for income. In both scenarios, the income from the prior year annual recertification was used for the annual or interim recertification, in relation to the check sampled, without obtaining the third-party verification. We also found two files that contained incorrect HAP payments. One instance was due to the tenant moving addresses halfway through the month and the full HAP payment was not paid back to HUD. The second instance was due to an incorrect income calculation resulting in incorrect HAP payments. Context We reviewed 40 tenant files out of an average of 679 vouchers a month. Effect Authority may be charging incorrect rental rate per approved policies Questioned Costs None. Cause Proper eligibility documentation is not being prepared and maintained in all tenant files. Repeat Finding Not a repeat finding. Recommendation We recommend tenant files should be maintained in an orderly fashion and all required documentation should be kept in the appropriate file. We also recommend that the Authority get third party verification when approaching an annual recertification at the minimum. Views of Responsible Officials Management will continue to emphasize to staff that applicable regulations and policies be followed to ensure compliance.

2024-004 Eligibility and Housing Assistance Payments – Significant Deficiency Federal Program U.S. Department of Housing and Urban Development AL #14.871 & 14.879 Grant Award No. ND031-Housing Choice Vouchers & ND031-Mainstream Vouchers Grant Award Year 2024 Criteria In accordance with 24 CFR sections 982.201, 982.515 and 982.516, the Authority must have proper supporting documentation to determine income eligibility and tenant’s rent payment. In accordance with 24 CFR section 982.516, the Authority must 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. Condition During our testing of 40 tenant files, we found two files that did not contain third-party verification for income. In both scenarios, the income from the prior year annual recertification was used for the annual or interim recertification, in relation to the check sampled, without obtaining the third-party verification. We also found two files that contained incorrect HAP payments. One instance was due to the tenant moving addresses halfway through the month and the full HAP payment was not paid back to HUD. The second instance was due to an incorrect income calculation resulting in incorrect HAP payments. Context We reviewed 40 tenant files out of an average of 679 vouchers a month. Effect Authority may be charging incorrect rental rate per approved policies Questioned Costs None. Cause Proper eligibility documentation is not being prepared and maintained in all tenant files. Repeat Finding Not a repeat finding. Recommendation We recommend tenant files should be maintained in an orderly fashion and all required documentation should be kept in the appropriate file. We also recommend that the Authority get third party verification when approaching an annual recertification at the minimum. Views of Responsible Officials Management will continue to emphasize to staff that applicable regulations and policies be followed to ensure compliance.

2024-004 Eligibility and Housing Assistance Payments – Significant Deficiency Federal Program U.S. Department of Housing and Urban Development AL #14.871 & 14.879 Grant Award No. ND031-Housing Choice Vouchers & ND031-Mainstream Vouchers Grant Award Year 2024 Criteria In accordance with 24 CFR sections 982.201, 982.515 and 982.516, the Authority must have proper supporting documentation to determine income eligibility and tenant’s rent payment. In accordance with 24 CFR section 982.516, the Authority must 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. Condition During our testing of 40 tenant files, we found two files that did not contain third-party verification for income. In both scenarios, the income from the prior year annual recertification was used for the annual or interim recertification, in relation to the check sampled, without obtaining the third-party verification. We also found two files that contained incorrect HAP payments. One instance was due to the tenant moving addresses halfway through the month and the full HAP payment was not paid back to HUD. The second instance was due to an incorrect income calculation resulting in incorrect HAP payments. Context We reviewed 40 tenant files out of an average of 679 vouchers a month. Effect Authority may be charging incorrect rental rate per approved policies Questioned Costs None. Cause Proper eligibility documentation is not being prepared and maintained in all tenant files. Repeat Finding Not a repeat finding. Recommendation We recommend tenant files should be maintained in an orderly fashion and all required documentation should be kept in the appropriate file. We also recommend that the Authority get third party verification when approaching an annual recertification at the minimum. Views of Responsible Officials Management will continue to emphasize to staff that applicable regulations and policies be followed to ensure compliance.