Audit 395422

Criteria: Per 2 CFR, PHAs are required to obtain documentation declaring the tenant is eligible to receive federal housing benefits, obtain release forms from tenants to gather necessary information from third parties, and perform annual recertifications of tenant income through HUD Form 50058. Condition: The Authority was unable to provide declarations of eligible status, signed release forms, documented HQS inspections, and utility allowance calculations. Furthermore, the Authority did not provide documented income qualification to determine tenant’s rent amount. Context: Out of the 40 tenant files reviewed, we found the following exceptions: 5 files did not have proper declaration of eligible status 15 files did not have updated signed release forms or HQS inspections performed 7 files were not submitted on time and 9 files did not have income qualification 18 files did not have rent reasonableness determination 9 files did not have proper utility allowance calculations Effect: The Authority was not in compliance with the eligibility, reporting, and special tests and provisions requirements for the program. Cause: The Authority did not have the proper controls in place to ensure the files were complete and accurate. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the recertifications are performed and the necessary documentation is adequately retained in the Authority’s files. Views of Responsible Officials: The Authority agrees with the finding.