Audit 342743

Finding 2024-001 Subject: Section 8 Housing Choice Voucher Program – Tenant Eligibility and Reexaminations Federal Agency: Department of Housing and Urban Development Federal Program: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Number and Year (or Other Identifying Number): CY 2024 Pass-Through Entity: Not applicable Compliance Requirement: Eligibility Audit Finding: Significant Deficiency Condition and Context: During audit fieldwork, 40 tenant files were reviewed for compliance with Program eligibility and reexamination requirements. The following discrepancies were noted: 9 files miscalculated total tenant payment. 6 errors were due to miscalculation of wages or income. 3 resulted from incorrect deductions applied. 5 files did not use the correct Utility Allowance Noted 5 instances of misalignment of utility responsibilities across HAP contract, Request for Tenancy Approval, and Lease Criteria: 24 CFR section 982.516 states in part “Except as provided in paragraph (a)(3) of this section, the PHA must obtain and document in the tenant file third-party verification of the following factors, or must document in the tenant file why third-party verification was not available: (i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income.” 24 CFR section 982.52 HUD requirements states “The PHA must comply with HUD regulations and other HUD requirements for the program. HUD requirements are issued by HUD headquarters, as regulations, Federal Register notices or other binding program directives” Cause: Failure to execute internal controls over the federal Eligibility compliance requirement. Effect: Non-compliance with the federal Eligibility requirement. Tenant rents may be miscalculated, other notifications and documentations may be missing. Questioned Cost: Known and projected misstatement: $27,932 Recommendation: We recommend the Authority implement and execute strengthened controls over the federal Eligibility compliance requirement to include the performance of annual reexaminations and documentation maintenance; the above discrepancies need to be addressed, and all tenant files should be reviewed for compliance.

Finding 2024-001 Subject: Section 8 Housing Choice Voucher Program – Tenant Eligibility and Reexaminations Federal Agency: Department of Housing and Urban Development Federal Program: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Number and Year (or Other Identifying Number): CY 2024 Pass-Through Entity: Not applicable Compliance Requirement: Eligibility Audit Finding: Significant Deficiency Condition and Context: During audit fieldwork, 40 tenant files were reviewed for compliance with Program eligibility and reexamination requirements. The following discrepancies were noted: 9 files miscalculated total tenant payment. 6 errors were due to miscalculation of wages or income. 3 resulted from incorrect deductions applied. 5 files did not use the correct Utility Allowance Noted 5 instances of misalignment of utility responsibilities across HAP contract, Request for Tenancy Approval, and Lease Criteria: 24 CFR section 982.516 states in part “Except as provided in paragraph (a)(3) of this section, the PHA must obtain and document in the tenant file third-party verification of the following factors, or must document in the tenant file why third-party verification was not available: (i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income.” 24 CFR section 982.52 HUD requirements states “The PHA must comply with HUD regulations and other HUD requirements for the program. HUD requirements are issued by HUD headquarters, as regulations, Federal Register notices or other binding program directives” Cause: Failure to execute internal controls over the federal Eligibility compliance requirement. Effect: Non-compliance with the federal Eligibility requirement. Tenant rents may be miscalculated, other notifications and documentations may be missing. Questioned Cost: Known and projected misstatement: $27,932 Recommendation: We recommend the Authority implement and execute strengthened controls over the federal Eligibility compliance requirement to include the performance of annual reexaminations and documentation maintenance; the above discrepancies need to be addressed, and all tenant files should be reviewed for compliance.