Audit 399541

2025-001 ALN 14.871 – Housing Voucher Cluster – Eligibility Condition and Criteria: During our audit, it was determined that significant deficiencies in internal controls existed over the Authority’s Housing Voucher Cluster eligibility process being compliant with HUD regulatory requirements. Housing Assistance payments on 50058 reports should agree to the corresponding HAP register. EIV reports should be ran at least once annually and ran within 120 days for new admissions. Utility allowances reported on the 50058 reports should agree to the Authority's utility allowance calculated sheets. Support for income, expenses, and deductions should be maintained in the tenant file. HQS inspections should be performed in accordance with the Authority's policies. Housing Assistance payments on 50058 reports did not agree to the corresponding HAP register. EIV reports were not ran at least once annually and ran within 120 days for new admissions. Utility allowances reported on the 50058 reports did not agree to the Authority's utility allowance calculated sheets. Support for income, expenses, and deductions were not maintained in the tenant files. HQS inspections were not performed in accordance with the Authority's policies. Amount of Questioned Costs: None Context: Within the 25 tenant files selected and tested for compliance with laws and regulations, 1 of the tenant files tested did not have an EIV report, 1 of the tenant files tested were missing a signed Declaration of Section 214 Status, 2 tenant files tested did not have the requested copy of HUD-50058 due to late recertifications, 1 tenant file tested had an incorrect utility allowance used, 1 tenant files has incorrect income reported, 1 HQS inspection was not performed in accordance with the Authority's policies, and 1 tenant file with an incorrect payment standard. The Authority under prior management did not utilize adequate internal controls over the HCV program as there is a lack of sufficient documentation that was evident in the prior year and continued over to the current audit period. Cause: The Authority under prior management did not utilize adequate internal controls over the HCV program as there is a lack of sufficient documentation that was evident in the prior year and continued over to the current audit period. Effect: The Authority is not in compliance with HUD requirements over documentation in tenant files. The Authority potentially could be improperly performing annual and interim reexaminations. This could cause some of the tenants to pay an incorrect rent amount in accordance with HUD eligibility rules and regulations. Auditor’s Recommendation: We recommend that the Authority review documentation requirements regarding tenant files. We recommend the Authority implement adequate processes and procedures to ensure all required tenant files documentation is maintained per Federal regulations and the Authority's Section 8 Administrative Plan. The Authority should also begin performing quality control procedures including internal audits of tenant files to ensure that these files are accurate and complete. Grantee Response: The Executive Director agrees with the finding and will follow the Auditor's recommendation.