Audit 403369

2025-002 Housing Choice Voucher Tenant Files: Eligibility Program: U.S. Department of HUD: Section 8 Housing Choice Vouchers (ALN #14.871) Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters This is a repeat finding of 2024-003 from September 30, 2024 (Originally reported as Material non-compliance and Material Weakness in Internal Control over Compliance under finding 2019-001 from September 30, 2019) Statement of Condition: Out of a total tenant population of approximately 1,086 leased vouchers, 25 files were selected for testing, and the following errors were discovered. • 1 tenant file where the tenant's utility allowance was miscalculated and reported incorrectly on the 50058 form. Correcting this error would decrease the HAP rent by $26. • 1 tenant file where the tenant's utility allowance was miscalculated and reported incorrectly on the 50058 form. Correcting this error would decrease the HAP rent by $23. • 1 tenant file where the tenant's income was miscalculated and reported incorrectly on the 50058 form. Correcting this error would decrease the HAP rent by $266. • 1 tenant file where the tenant's income was miscalculated and reported incorrectly on the 50058 form. Correcting this error would decrease the HAP rent by $40. • 1 tenant file where the tenant's income was miscalculated and reported incorrectly on the 50058 form. Correcting this error would decrease the HAP rent by $318. • 1 tenant file where the tenant’s utility allowance and income was miscalculated and reported incorrectly on the 50058 form. Correcting this error would decrease the HAP rent by $121. • 1 tenant file where the tenant’s income was miscalculated but did not impact the HAP rent. • 1 tenant file where the tenant’s wage income was coded incorrectly as federal income on the 50058 form. Criteria: Per 24 CFR 982.516, internal controls are required to ensure full compliance with HUD requirements and the integrity of tenant files. Furthermore, the Authority’s Administrative Plan mandates adherence to established procedures for the accurate determination of tenant income and utility allowance, with comprehensive documentation maintained within tenant records. Questioned Costs: None. Effect: The Authority is not in compliance with all of the HUD requirements regarding eligibility and tenant recertification, which could result in incorrect total tenant payments for rent and HAP payments to landlords. Cause: Procedures to ensure compliance with all of the HUD requirements were not being carefully followed. In addition, the Authority experienced some turnover in the HCV department which contributed to these errors. Recommendation: The Authority should correct the deficiencies noted in the tested files and utilize an ongoing quality control review process on the entire tenant population to ensure proper compliance with the requirements related to tenant eligibility. Ongoing staff training and timely management reviews should be utilized to ensure staff is aware of acceptable procedures. In addition, the Authority should review staffing levels, skill sets and case load. Views of Responsible Officials of the Auditee: The Authority concurs with this finding and remains committed to maintaining strong internal controls and ensuring full compliance with HUD regulations and program requirements. The Authority has established review, oversight, and training processes and will continue to strengthen these measures to promote accuracy, consistency, and regulatory compliance throughout the Housing Choice Voucher (HCV) Program.