2022-001 HCVP PIC Reporting Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Choice Voucher Program Assistance Listing Number: 14.871 Federal Award Identification Number and Year: TX017 - 2022 Award Period: July 1, 2021 through June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or Specific Requirement:: HUD-50058, Family Report (OMB No. 2577-0083) ? The PHA is required to submit this form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA?s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that special reporting requirements were being met. Questioned Costs: None Context: Of the 40 HUD-50058?s tested, we noted that 4 out of 40 were not uploaded timely to HUD?s PIH Information Center (PIC). Our sample was a statistically valid sample. Cause: The Authority does not have controls in place to ensure that special reporting requirements are being met. Effect: The Authority is not in compliance with program requirements over special reporting. Recommendation: The Authority should implement processes to ensure HUD-50058 submissions are completed timely. View of Responsible Officials: There is no disagreement with this finding.
2022-002 HCVP Eligibility Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Choice Voucher Program Assistance Listing Number: 14.871 Federal Award Identification Number and Year: TX017 ? 2022 Award Period: July 1, 2021 through June 30, 2022 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: (1) 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). (2) 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 (24 CFR section 982.516). (3) 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). (4) 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). (5) 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 our testing, we noted the Authority did not have adequate internal controls designed to ensure that eligibility requirements were being met. Questioned Costs: $1,725 Context: Out of 40 tenants tested, we noted 5 instances where there was a difference between the third-party verification and what was reported on the HUD 50058, all of which could have a potential impact on the HAP calculation. Our sample was a statistically valid sample. ? - One instance of missing third party verification information of income. ? - Four instances of incorrect income reported on the HUD 50058. ? - Two instances of incorrect reporting / deduction of expenses on the HUD 50058 Cause: The Authority does not have controls in place to ensure it is meeting all eligibility requirements set by HUD. Effect: The Authority is not in compliance with program requirements over eligibility. Recommendation: The Authority should implement processes to ensure that all documentation is received and that the correct inputs are being accurately reported on the HUD-50058. View of Responsible Officials: Management agrees with the finding.
2022-003 HCVP HQS Inspections Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Choice Voucher Program Assistance Listing Number: 14.871 Federal Award Identification Number and Year: TX017 ? 2022 Award Period: July 1, 2021 through June 30, 2022 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 biennially 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)). For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family?s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that HQS inspection requirements were being met. Questioned Costs: None Context: Of the 40 annual HQS inspections tested, it was noted that 8 out of 40 units were not inspected on a biennial basis. Of the 40 failed HQS inspection tested, it was noted that 3 units were not reinspected within 30 days of the initial fail date. Our sample was a statistically valid sample. Cause: The Authority does not have adequate internal controls designed to ensure that HQS inspection requirements were being met. Effect: The Authority is not in compliance with program requirements over HQS Inspections. Recommendation: The Authority should implement processes to ensure all HQS inspections are completed timely. View of Responsible Officials: Management agrees with the finding.
2022-001 HCVP PIC Reporting Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Choice Voucher Program Assistance Listing Number: 14.871 Federal Award Identification Number and Year: TX017 - 2022 Award Period: July 1, 2021 through June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or Specific Requirement:: HUD-50058, Family Report (OMB No. 2577-0083) ? The PHA is required to submit this form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA?s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that special reporting requirements were being met. Questioned Costs: None Context: Of the 40 HUD-50058?s tested, we noted that 4 out of 40 were not uploaded timely to HUD?s PIH Information Center (PIC). Our sample was a statistically valid sample. Cause: The Authority does not have controls in place to ensure that special reporting requirements are being met. Effect: The Authority is not in compliance with program requirements over special reporting. Recommendation: The Authority should implement processes to ensure HUD-50058 submissions are completed timely. View of Responsible Officials: There is no disagreement with this finding.
2022-002 HCVP Eligibility Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Choice Voucher Program Assistance Listing Number: 14.871 Federal Award Identification Number and Year: TX017 ? 2022 Award Period: July 1, 2021 through June 30, 2022 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: (1) 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). (2) 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 (24 CFR section 982.516). (3) 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). (4) 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). (5) 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 our testing, we noted the Authority did not have adequate internal controls designed to ensure that eligibility requirements were being met. Questioned Costs: $1,725 Context: Out of 40 tenants tested, we noted 5 instances where there was a difference between the third-party verification and what was reported on the HUD 50058, all of which could have a potential impact on the HAP calculation. Our sample was a statistically valid sample. ? - One instance of missing third party verification information of income. ? - Four instances of incorrect income reported on the HUD 50058. ? - Two instances of incorrect reporting / deduction of expenses on the HUD 50058 Cause: The Authority does not have controls in place to ensure it is meeting all eligibility requirements set by HUD. Effect: The Authority is not in compliance with program requirements over eligibility. Recommendation: The Authority should implement processes to ensure that all documentation is received and that the correct inputs are being accurately reported on the HUD-50058. View of Responsible Officials: Management agrees with the finding.
2022-003 HCVP HQS Inspections Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Choice Voucher Program Assistance Listing Number: 14.871 Federal Award Identification Number and Year: TX017 ? 2022 Award Period: July 1, 2021 through June 30, 2022 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 biennially 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)). For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family?s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that HQS inspection requirements were being met. Questioned Costs: None Context: Of the 40 annual HQS inspections tested, it was noted that 8 out of 40 units were not inspected on a biennial basis. Of the 40 failed HQS inspection tested, it was noted that 3 units were not reinspected within 30 days of the initial fail date. Our sample was a statistically valid sample. Cause: The Authority does not have adequate internal controls designed to ensure that HQS inspection requirements were being met. Effect: The Authority is not in compliance with program requirements over HQS Inspections. Recommendation: The Authority should implement processes to ensure all HQS inspections are completed timely. View of Responsible Officials: Management agrees with the finding.