Audit 397015

Federal Program Section 8 Housing Voucher Cluster 14.871 & 14.879 – Significant Deficiency Criteria The Authority must obtain and document in the family file third party verification of 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 (24 CFR 982.516) Condition During our testing of 40 tenant files, we noted two files with income calculation errors and an additional file with the incorrect payment standard being used. Questioned Costs Undeterminable Context We reviewed a random sample of forty tenant files out of 291 for a tenant’s HAP amount. Effect The income verified was not appropriately used for determining the tenant’s income. Cause Management oversight and lack of internal controls in using checklists in files. Repeat Finding Not a repeat finding. Recommendation We recommend the Authority implement proper internal controls to ensure the Authority’s compliance, which could include the use of checklists in each file. Views of Responsible Officials The Authority is implementing a checklist and will continue random monthly file audits to be completed and documented by the Executive Director.

Federal Program Section 8 Housing Voucher Cluster 14.871 & 14.879 – Significant Deficiency Criteria Amounts paid under Section 8 Vouchers Program must meet the allowable costs/cost principles per HUD’s annual guidance. Condition During our testing of disbursements, we noted 5 instances of the Authority not having documentation to support an allocation of costs to the Vouchers program. Questioned Costs Undeterminable Context We reviewed a random sample of nine checks out of 89 from the Section 8 Vouchers Program. Effect The allocated costs to the Section 8 Vouchers Program were undeterminable due to the fact that no documentation to support the allocation was provided. Cause The Authority does not have formal approval/documentation of the allocation. Repeat Finding Not a repeat finding. Recommendation We recommend the Authority implement proper internal controls to ensure the Authority’s allocations are properly documented based on actual information and approved. Views of Responsible Officials The Authority will implement controls to make sure there is additional required documentation before any action for payment.