Audit 378611

ALN #14.871 Compliance Requirement: Eligibililty Type of Finding: Noncompliance, Significant Deficiency Condition: The Authority did not complete annual recertifications in accordance with HUD regulations and its Administrative Plan, resulting in incomplete or missing documentation necessary to support tenant eligibility and rent determinations. Criteria HUD regulations require public housing authorities to reexamine family income and composition at least once every twelve (12) months and to calculate tenant rent and housing assistance payments based on complete and accurate information (24 CFR §§ 982.516, 982.158, and 982.305). The Authority’s Administrative Plan further establishes requirements for maintaining complete tenant files, including documentation supporting income verification, rent reasonableness, utility allowances, and participant eligibility. Cause The cause of the condition was inadequate management oversight and quality control over the recertification process, resulting in required documentation not being obtained, reviewed, or retained in accordance with established policies and HUD requirements. Effect Failure to properly complete annual recertifications and maintain required supporting documentation increases the risk that tenant rent and housing assistance payments are calculated inaccurately and that ineligible households receive housing assistance. Additionally, incomplete files limit the Authority’s ability to demonstrate compliance with HUD regulations and its Administrative Plan. Questioned Costs No questioned costs were identified; however, unsupported payments were noted due to incomplete eligibility documentation. Context During audit fieldwork, sixty (60) HAP contract files were selected and examined for compliance with annual recertification requirements. Our testing identified pervasive instances of incomplete recertification documentation within the files reviewed. Recommendation The Authority should strengthen oversight and quality control procedures over the Housing Choice Voucher recertification process to ensure that annual recertifications are completed timely and that all required documentation is obtained, reviewed, and retained in accordance with HUD regulations and the Authority’s Administrative Plan.