Finding 2024-001 Special Test and Provisions – HQS Enforcement
ALN 14.871/14.879 Housing Voucher Cluster
Criteria: Pursuant to 24 CFR Section 982.404, the owner must maintain the unit in accordance with Housing Quality Standards (“HQS”). As a condition of continued assistance, any non-life-threatening defects must be corrected within no more than 30 calendar days or any PHA-approved extension.
Condition: For 1 of the 60 clients selected for testing, non-life-threatening defects were not corrected within 30 calendar days or within the PHA-approved extension. In addition, the HAP contract was not terminated timely.
Cause: The Authority’s internal control procedures to ensure compliance with Federal Special Tests and Provisions – HQS Enforcement requirements were not operating as designed.
Effect: The Authority was not in compliance with program’s Special Tests and Provisions – HQS Enforcement requirements and controls were not operating effectively. This finding was a repeat of finding 2023-001 in the prior year.
Questioned Costs: The amount of questioned costs is equal to three months of HAP payments at $1,354 per month.
Recommendation: The Authority should ensure that any non-life-threatening defects are corrected within no more than 30 calendar days or any PHA-approved extension. The Authority should ensure controls operate effectively.
Management’s Response: Management agrees with the finding and is implementing procedures to correct it.
The Housing Authority agrees with the finding and is implementing procedures to correct it. Applicable staff will be briefed on the finding and training will be provided on both written policy and procedure. The Housing Authority has a quality assurance program to monitor and ensure all units are maintained in accordance with HQS Enforcement requirements.
Finding 2024-001 Special Test and Provisions – HQS Enforcement
ALN 14.871/14.879 Housing Voucher Cluster
Criteria: Pursuant to 24 CFR Section 982.404, the owner must maintain the unit in accordance with Housing Quality Standards (“HQS”). As a condition of continued assistance, any non-life-threatening defects must be corrected within no more than 30 calendar days or any PHA-approved extension.
Condition: For 1 of the 60 clients selected for testing, non-life-threatening defects were not corrected within 30 calendar days or within the PHA-approved extension. In addition, the HAP contract was not terminated timely.
Cause: The Authority’s internal control procedures to ensure compliance with Federal Special Tests and Provisions – HQS Enforcement requirements were not operating as designed.
Effect: The Authority was not in compliance with program’s Special Tests and Provisions – HQS Enforcement requirements and controls were not operating effectively. This finding was a repeat of finding 2023-001 in the prior year.
Questioned Costs: The amount of questioned costs is equal to three months of HAP payments at $1,354 per month.
Recommendation: The Authority should ensure that any non-life-threatening defects are corrected within no more than 30 calendar days or any PHA-approved extension. The Authority should ensure controls operate effectively.
Management’s Response: Management agrees with the finding and is implementing procedures to correct it.
The Housing Authority agrees with the finding and is implementing procedures to correct it. Applicable staff will be briefed on the finding and training will be provided on both written policy and procedure. The Housing Authority has a quality assurance program to monitor and ensure all units are maintained in accordance with HQS Enforcement requirements.
Finding 2024-001 Special Test and Provisions – HQS Enforcement
ALN 14.871/14.879 Housing Voucher Cluster
Criteria: Pursuant to 24 CFR Section 982.404, the owner must maintain the unit in accordance with Housing Quality Standards (“HQS”). As a condition of continued assistance, any non-life-threatening defects must be corrected within no more than 30 calendar days or any PHA-approved extension.
Condition: For 1 of the 60 clients selected for testing, non-life-threatening defects were not corrected within 30 calendar days or within the PHA-approved extension. In addition, the HAP contract was not terminated timely.
Cause: The Authority’s internal control procedures to ensure compliance with Federal Special Tests and Provisions – HQS Enforcement requirements were not operating as designed.
Effect: The Authority was not in compliance with program’s Special Tests and Provisions – HQS Enforcement requirements and controls were not operating effectively. This finding was a repeat of finding 2023-001 in the prior year.
Questioned Costs: The amount of questioned costs is equal to three months of HAP payments at $1,354 per month.
Recommendation: The Authority should ensure that any non-life-threatening defects are corrected within no more than 30 calendar days or any PHA-approved extension. The Authority should ensure controls operate effectively.
Management’s Response: Management agrees with the finding and is implementing procedures to correct it.
The Housing Authority agrees with the finding and is implementing procedures to correct it. Applicable staff will be briefed on the finding and training will be provided on both written policy and procedure. The Housing Authority has a quality assurance program to monitor and ensure all units are maintained in accordance with HQS Enforcement requirements.
Finding 2024-002 Eligibility | Reporting | Special Tests and Provisions – Housing Assistance Payment
ALN 14.871/14.879 Housing Voucher Cluster
Criteria: Eligibility: Pursuant to 24 CFR Sections 5.212 and 5.230, at each annual income reexamination the head of household is required to sign: one or more release forms to allow the PHA to obtain information from third parties, a federally prescribed general release form for employment information, and a privacy notice. Additionally, each member of the family of a participant who is at least 18 years of age, and each family head and spouse regardless of age, shall sign one or more consent forms. Pursuant to 24 CFR Sections 5.609, 982.201, 982.515, and 982.516, the PHA must conduct a reexamination of family income/composition, determine income eligibility, and calculate the tenant’s rent payment using documentation from third party verification at least annually. The family file must include third party verification of the reported family annual income, the value of assets, expenses related to deductions from annual income, and other factors that affect the determination of adjusted income or income-based rent. Pursuant to 24 CFR Section 5.233, processing entities must use HUD’s EIV system in its entirety as a third-party source to verify employment and income information during annual reexaminations and to reduce administrative and subsidy payment errors in accordance with HUD administrative guidance.Reporting: Pursuant to 24 CFR Part 908 and Section 982.158, the PHA must maintain complete and accurate accounts and other records in Form HUD-50058. This form is required to be submitted to HUD each time the PHA completes an issuance, admission, annual reexamination, portability move-in, expiration, or other change of unit for a family. Supporting documentation must also be retained during the term of each assisted lease, and for a period of at least 3 years from the end of participation date. Special Tests and Provisions – Housing Assistance Payment: Pursuant to 24 CFR Section 982.158 and Part 982, Subpart K, the PHA must conduct a reexamination of family income and composition at least annually and pay the owner the lesser of the housing assistance payment calculated on line 12u of the HUD-50058 form or total rent to owner.
Condition: For 1 of 40 clients selected for testing, an annual reexamination of family income/composition and form HUD-50058 were not completed. In addition, the HAP contract was not terminated timely.
Cause: The Authority’s internal control procedures to ensure compliance with Eligibility, Reporting, and Special Tests and Provisions - Housing Assistance Payment requirements were not operating as designed.
Effect: The Authority was not in compliance with program’s Eligibility, Reporting, and Special Tests and Provisions – Housing Assistance Payment requirements and controls were not operating effectively.
Questioned Costs: The amount of questioned costs is equal to three months of HAP payments at $500 per month.
Recommendation: The Authority should ensure that a reexamination of family income and composition is completed at least annually.
Management’s Response: Management agrees with the finding and is implementing procedures to correct it.
The Housing Authority agrees with the finding and is implementing procedures to correct it. Applicable staff will be briefed on the finding and training will be provided on both written policy and procedure. The Housing Authority has a quality assurance program to monitor and ensure all clients complete an annual family income reexamination in accordance with Eligibility, Reporting, and Housing Assistance Payment requirements.
Finding 2024-002 Eligibility | Reporting | Special Tests and Provisions – Housing Assistance Payment
ALN 14.871/14.879 Housing Voucher Cluster
Criteria: Eligibility: Pursuant to 24 CFR Sections 5.212 and 5.230, at each annual income reexamination the head of household is required to sign: one or more release forms to allow the PHA to obtain information from third parties, a federally prescribed general release form for employment information, and a privacy notice. Additionally, each member of the family of a participant who is at least 18 years of age, and each family head and spouse regardless of age, shall sign one or more consent forms. Pursuant to 24 CFR Sections 5.609, 982.201, 982.515, and 982.516, the PHA must conduct a reexamination of family income/composition, determine income eligibility, and calculate the tenant’s rent payment using documentation from third party verification at least annually. The family file must include third party verification of the reported family annual income, the value of assets, expenses related to deductions from annual income, and other factors that affect the determination of adjusted income or income-based rent. Pursuant to 24 CFR Section 5.233, processing entities must use HUD’s EIV system in its entirety as a third-party source to verify employment and income information during annual reexaminations and to reduce administrative and subsidy payment errors in accordance with HUD administrative guidance.Reporting: Pursuant to 24 CFR Part 908 and Section 982.158, the PHA must maintain complete and accurate accounts and other records in Form HUD-50058. This form is required to be submitted to HUD each time the PHA completes an issuance, admission, annual reexamination, portability move-in, expiration, or other change of unit for a family. Supporting documentation must also be retained during the term of each assisted lease, and for a period of at least 3 years from the end of participation date. Special Tests and Provisions – Housing Assistance Payment: Pursuant to 24 CFR Section 982.158 and Part 982, Subpart K, the PHA must conduct a reexamination of family income and composition at least annually and pay the owner the lesser of the housing assistance payment calculated on line 12u of the HUD-50058 form or total rent to owner.
Condition: For 1 of 40 clients selected for testing, an annual reexamination of family income/composition and form HUD-50058 were not completed. In addition, the HAP contract was not terminated timely.
Cause: The Authority’s internal control procedures to ensure compliance with Eligibility, Reporting, and Special Tests and Provisions - Housing Assistance Payment requirements were not operating as designed.
Effect: The Authority was not in compliance with program’s Eligibility, Reporting, and Special Tests and Provisions – Housing Assistance Payment requirements and controls were not operating effectively.
Questioned Costs: The amount of questioned costs is equal to three months of HAP payments at $500 per month.
Recommendation: The Authority should ensure that a reexamination of family income and composition is completed at least annually.
Management’s Response: Management agrees with the finding and is implementing procedures to correct it.
The Housing Authority agrees with the finding and is implementing procedures to correct it. Applicable staff will be briefed on the finding and training will be provided on both written policy and procedure. The Housing Authority has a quality assurance program to monitor and ensure all clients complete an annual family income reexamination in accordance with Eligibility, Reporting, and Housing Assistance Payment requirements.
Finding 2024-002 Eligibility | Reporting | Special Tests and Provisions – Housing Assistance Payment
ALN 14.871/14.879 Housing Voucher Cluster
Criteria: Eligibility: Pursuant to 24 CFR Sections 5.212 and 5.230, at each annual income reexamination the head of household is required to sign: one or more release forms to allow the PHA to obtain information from third parties, a federally prescribed general release form for employment information, and a privacy notice. Additionally, each member of the family of a participant who is at least 18 years of age, and each family head and spouse regardless of age, shall sign one or more consent forms. Pursuant to 24 CFR Sections 5.609, 982.201, 982.515, and 982.516, the PHA must conduct a reexamination of family income/composition, determine income eligibility, and calculate the tenant’s rent payment using documentation from third party verification at least annually. The family file must include third party verification of the reported family annual income, the value of assets, expenses related to deductions from annual income, and other factors that affect the determination of adjusted income or income-based rent. Pursuant to 24 CFR Section 5.233, processing entities must use HUD’s EIV system in its entirety as a third-party source to verify employment and income information during annual reexaminations and to reduce administrative and subsidy payment errors in accordance with HUD administrative guidance.Reporting: Pursuant to 24 CFR Part 908 and Section 982.158, the PHA must maintain complete and accurate accounts and other records in Form HUD-50058. This form is required to be submitted to HUD each time the PHA completes an issuance, admission, annual reexamination, portability move-in, expiration, or other change of unit for a family. Supporting documentation must also be retained during the term of each assisted lease, and for a period of at least 3 years from the end of participation date. Special Tests and Provisions – Housing Assistance Payment: Pursuant to 24 CFR Section 982.158 and Part 982, Subpart K, the PHA must conduct a reexamination of family income and composition at least annually and pay the owner the lesser of the housing assistance payment calculated on line 12u of the HUD-50058 form or total rent to owner.
Condition: For 1 of 40 clients selected for testing, an annual reexamination of family income/composition and form HUD-50058 were not completed. In addition, the HAP contract was not terminated timely.
Cause: The Authority’s internal control procedures to ensure compliance with Eligibility, Reporting, and Special Tests and Provisions - Housing Assistance Payment requirements were not operating as designed.
Effect: The Authority was not in compliance with program’s Eligibility, Reporting, and Special Tests and Provisions – Housing Assistance Payment requirements and controls were not operating effectively.
Questioned Costs: The amount of questioned costs is equal to three months of HAP payments at $500 per month.
Recommendation: The Authority should ensure that a reexamination of family income and composition is completed at least annually.
Management’s Response: Management agrees with the finding and is implementing procedures to correct it.
The Housing Authority agrees with the finding and is implementing procedures to correct it. Applicable staff will be briefed on the finding and training will be provided on both written policy and procedure. The Housing Authority has a quality assurance program to monitor and ensure all clients complete an annual family income reexamination in accordance with Eligibility, Reporting, and Housing Assistance Payment requirements.
Finding 2024-001 Special Test and Provisions – HQS Enforcement
ALN 14.871/14.879 Housing Voucher Cluster
Criteria: Pursuant to 24 CFR Section 982.404, the owner must maintain the unit in accordance with Housing Quality Standards (“HQS”). As a condition of continued assistance, any non-life-threatening defects must be corrected within no more than 30 calendar days or any PHA-approved extension.
Condition: For 1 of the 60 clients selected for testing, non-life-threatening defects were not corrected within 30 calendar days or within the PHA-approved extension. In addition, the HAP contract was not terminated timely.
Cause: The Authority’s internal control procedures to ensure compliance with Federal Special Tests and Provisions – HQS Enforcement requirements were not operating as designed.
Effect: The Authority was not in compliance with program’s Special Tests and Provisions – HQS Enforcement requirements and controls were not operating effectively. This finding was a repeat of finding 2023-001 in the prior year.
Questioned Costs: The amount of questioned costs is equal to three months of HAP payments at $1,354 per month.
Recommendation: The Authority should ensure that any non-life-threatening defects are corrected within no more than 30 calendar days or any PHA-approved extension. The Authority should ensure controls operate effectively.
Management’s Response: Management agrees with the finding and is implementing procedures to correct it.
The Housing Authority agrees with the finding and is implementing procedures to correct it. Applicable staff will be briefed on the finding and training will be provided on both written policy and procedure. The Housing Authority has a quality assurance program to monitor and ensure all units are maintained in accordance with HQS Enforcement requirements.
Finding 2024-001 Special Test and Provisions – HQS Enforcement
ALN 14.871/14.879 Housing Voucher Cluster
Criteria: Pursuant to 24 CFR Section 982.404, the owner must maintain the unit in accordance with Housing Quality Standards (“HQS”). As a condition of continued assistance, any non-life-threatening defects must be corrected within no more than 30 calendar days or any PHA-approved extension.
Condition: For 1 of the 60 clients selected for testing, non-life-threatening defects were not corrected within 30 calendar days or within the PHA-approved extension. In addition, the HAP contract was not terminated timely.
Cause: The Authority’s internal control procedures to ensure compliance with Federal Special Tests and Provisions – HQS Enforcement requirements were not operating as designed.
Effect: The Authority was not in compliance with program’s Special Tests and Provisions – HQS Enforcement requirements and controls were not operating effectively. This finding was a repeat of finding 2023-001 in the prior year.
Questioned Costs: The amount of questioned costs is equal to three months of HAP payments at $1,354 per month.
Recommendation: The Authority should ensure that any non-life-threatening defects are corrected within no more than 30 calendar days or any PHA-approved extension. The Authority should ensure controls operate effectively.
Management’s Response: Management agrees with the finding and is implementing procedures to correct it.
The Housing Authority agrees with the finding and is implementing procedures to correct it. Applicable staff will be briefed on the finding and training will be provided on both written policy and procedure. The Housing Authority has a quality assurance program to monitor and ensure all units are maintained in accordance with HQS Enforcement requirements.
Finding 2024-001 Special Test and Provisions – HQS Enforcement
ALN 14.871/14.879 Housing Voucher Cluster
Criteria: Pursuant to 24 CFR Section 982.404, the owner must maintain the unit in accordance with Housing Quality Standards (“HQS”). As a condition of continued assistance, any non-life-threatening defects must be corrected within no more than 30 calendar days or any PHA-approved extension.
Condition: For 1 of the 60 clients selected for testing, non-life-threatening defects were not corrected within 30 calendar days or within the PHA-approved extension. In addition, the HAP contract was not terminated timely.
Cause: The Authority’s internal control procedures to ensure compliance with Federal Special Tests and Provisions – HQS Enforcement requirements were not operating as designed.
Effect: The Authority was not in compliance with program’s Special Tests and Provisions – HQS Enforcement requirements and controls were not operating effectively. This finding was a repeat of finding 2023-001 in the prior year.
Questioned Costs: The amount of questioned costs is equal to three months of HAP payments at $1,354 per month.
Recommendation: The Authority should ensure that any non-life-threatening defects are corrected within no more than 30 calendar days or any PHA-approved extension. The Authority should ensure controls operate effectively.
Management’s Response: Management agrees with the finding and is implementing procedures to correct it.
The Housing Authority agrees with the finding and is implementing procedures to correct it. Applicable staff will be briefed on the finding and training will be provided on both written policy and procedure. The Housing Authority has a quality assurance program to monitor and ensure all units are maintained in accordance with HQS Enforcement requirements.
Finding 2024-002 Eligibility | Reporting | Special Tests and Provisions – Housing Assistance Payment
ALN 14.871/14.879 Housing Voucher Cluster
Criteria: Eligibility: Pursuant to 24 CFR Sections 5.212 and 5.230, at each annual income reexamination the head of household is required to sign: one or more release forms to allow the PHA to obtain information from third parties, a federally prescribed general release form for employment information, and a privacy notice. Additionally, each member of the family of a participant who is at least 18 years of age, and each family head and spouse regardless of age, shall sign one or more consent forms. Pursuant to 24 CFR Sections 5.609, 982.201, 982.515, and 982.516, the PHA must conduct a reexamination of family income/composition, determine income eligibility, and calculate the tenant’s rent payment using documentation from third party verification at least annually. The family file must include third party verification of the reported family annual income, the value of assets, expenses related to deductions from annual income, and other factors that affect the determination of adjusted income or income-based rent. Pursuant to 24 CFR Section 5.233, processing entities must use HUD’s EIV system in its entirety as a third-party source to verify employment and income information during annual reexaminations and to reduce administrative and subsidy payment errors in accordance with HUD administrative guidance.Reporting: Pursuant to 24 CFR Part 908 and Section 982.158, the PHA must maintain complete and accurate accounts and other records in Form HUD-50058. This form is required to be submitted to HUD each time the PHA completes an issuance, admission, annual reexamination, portability move-in, expiration, or other change of unit for a family. Supporting documentation must also be retained during the term of each assisted lease, and for a period of at least 3 years from the end of participation date. Special Tests and Provisions – Housing Assistance Payment: Pursuant to 24 CFR Section 982.158 and Part 982, Subpart K, the PHA must conduct a reexamination of family income and composition at least annually and pay the owner the lesser of the housing assistance payment calculated on line 12u of the HUD-50058 form or total rent to owner.
Condition: For 1 of 40 clients selected for testing, an annual reexamination of family income/composition and form HUD-50058 were not completed. In addition, the HAP contract was not terminated timely.
Cause: The Authority’s internal control procedures to ensure compliance with Eligibility, Reporting, and Special Tests and Provisions - Housing Assistance Payment requirements were not operating as designed.
Effect: The Authority was not in compliance with program’s Eligibility, Reporting, and Special Tests and Provisions – Housing Assistance Payment requirements and controls were not operating effectively.
Questioned Costs: The amount of questioned costs is equal to three months of HAP payments at $500 per month.
Recommendation: The Authority should ensure that a reexamination of family income and composition is completed at least annually.
Management’s Response: Management agrees with the finding and is implementing procedures to correct it.
The Housing Authority agrees with the finding and is implementing procedures to correct it. Applicable staff will be briefed on the finding and training will be provided on both written policy and procedure. The Housing Authority has a quality assurance program to monitor and ensure all clients complete an annual family income reexamination in accordance with Eligibility, Reporting, and Housing Assistance Payment requirements.
Finding 2024-002 Eligibility | Reporting | Special Tests and Provisions – Housing Assistance Payment
ALN 14.871/14.879 Housing Voucher Cluster
Criteria: Eligibility: Pursuant to 24 CFR Sections 5.212 and 5.230, at each annual income reexamination the head of household is required to sign: one or more release forms to allow the PHA to obtain information from third parties, a federally prescribed general release form for employment information, and a privacy notice. Additionally, each member of the family of a participant who is at least 18 years of age, and each family head and spouse regardless of age, shall sign one or more consent forms. Pursuant to 24 CFR Sections 5.609, 982.201, 982.515, and 982.516, the PHA must conduct a reexamination of family income/composition, determine income eligibility, and calculate the tenant’s rent payment using documentation from third party verification at least annually. The family file must include third party verification of the reported family annual income, the value of assets, expenses related to deductions from annual income, and other factors that affect the determination of adjusted income or income-based rent. Pursuant to 24 CFR Section 5.233, processing entities must use HUD’s EIV system in its entirety as a third-party source to verify employment and income information during annual reexaminations and to reduce administrative and subsidy payment errors in accordance with HUD administrative guidance.Reporting: Pursuant to 24 CFR Part 908 and Section 982.158, the PHA must maintain complete and accurate accounts and other records in Form HUD-50058. This form is required to be submitted to HUD each time the PHA completes an issuance, admission, annual reexamination, portability move-in, expiration, or other change of unit for a family. Supporting documentation must also be retained during the term of each assisted lease, and for a period of at least 3 years from the end of participation date. Special Tests and Provisions – Housing Assistance Payment: Pursuant to 24 CFR Section 982.158 and Part 982, Subpart K, the PHA must conduct a reexamination of family income and composition at least annually and pay the owner the lesser of the housing assistance payment calculated on line 12u of the HUD-50058 form or total rent to owner.
Condition: For 1 of 40 clients selected for testing, an annual reexamination of family income/composition and form HUD-50058 were not completed. In addition, the HAP contract was not terminated timely.
Cause: The Authority’s internal control procedures to ensure compliance with Eligibility, Reporting, and Special Tests and Provisions - Housing Assistance Payment requirements were not operating as designed.
Effect: The Authority was not in compliance with program’s Eligibility, Reporting, and Special Tests and Provisions – Housing Assistance Payment requirements and controls were not operating effectively.
Questioned Costs: The amount of questioned costs is equal to three months of HAP payments at $500 per month.
Recommendation: The Authority should ensure that a reexamination of family income and composition is completed at least annually.
Management’s Response: Management agrees with the finding and is implementing procedures to correct it.
The Housing Authority agrees with the finding and is implementing procedures to correct it. Applicable staff will be briefed on the finding and training will be provided on both written policy and procedure. The Housing Authority has a quality assurance program to monitor and ensure all clients complete an annual family income reexamination in accordance with Eligibility, Reporting, and Housing Assistance Payment requirements.
Finding 2024-002 Eligibility | Reporting | Special Tests and Provisions – Housing Assistance Payment
ALN 14.871/14.879 Housing Voucher Cluster
Criteria: Eligibility: Pursuant to 24 CFR Sections 5.212 and 5.230, at each annual income reexamination the head of household is required to sign: one or more release forms to allow the PHA to obtain information from third parties, a federally prescribed general release form for employment information, and a privacy notice. Additionally, each member of the family of a participant who is at least 18 years of age, and each family head and spouse regardless of age, shall sign one or more consent forms. Pursuant to 24 CFR Sections 5.609, 982.201, 982.515, and 982.516, the PHA must conduct a reexamination of family income/composition, determine income eligibility, and calculate the tenant’s rent payment using documentation from third party verification at least annually. The family file must include third party verification of the reported family annual income, the value of assets, expenses related to deductions from annual income, and other factors that affect the determination of adjusted income or income-based rent. Pursuant to 24 CFR Section 5.233, processing entities must use HUD’s EIV system in its entirety as a third-party source to verify employment and income information during annual reexaminations and to reduce administrative and subsidy payment errors in accordance with HUD administrative guidance.Reporting: Pursuant to 24 CFR Part 908 and Section 982.158, the PHA must maintain complete and accurate accounts and other records in Form HUD-50058. This form is required to be submitted to HUD each time the PHA completes an issuance, admission, annual reexamination, portability move-in, expiration, or other change of unit for a family. Supporting documentation must also be retained during the term of each assisted lease, and for a period of at least 3 years from the end of participation date. Special Tests and Provisions – Housing Assistance Payment: Pursuant to 24 CFR Section 982.158 and Part 982, Subpart K, the PHA must conduct a reexamination of family income and composition at least annually and pay the owner the lesser of the housing assistance payment calculated on line 12u of the HUD-50058 form or total rent to owner.
Condition: For 1 of 40 clients selected for testing, an annual reexamination of family income/composition and form HUD-50058 were not completed. In addition, the HAP contract was not terminated timely.
Cause: The Authority’s internal control procedures to ensure compliance with Eligibility, Reporting, and Special Tests and Provisions - Housing Assistance Payment requirements were not operating as designed.
Effect: The Authority was not in compliance with program’s Eligibility, Reporting, and Special Tests and Provisions – Housing Assistance Payment requirements and controls were not operating effectively.
Questioned Costs: The amount of questioned costs is equal to three months of HAP payments at $500 per month.
Recommendation: The Authority should ensure that a reexamination of family income and composition is completed at least annually.
Management’s Response: Management agrees with the finding and is implementing procedures to correct it.
The Housing Authority agrees with the finding and is implementing procedures to correct it. Applicable staff will be briefed on the finding and training will be provided on both written policy and procedure. The Housing Authority has a quality assurance program to monitor and ensure all clients complete an annual family income reexamination in accordance with Eligibility, Reporting, and Housing Assistance Payment requirements.