Audit 409131

Finding 2026-001 – Housing Choice Voucher Tenant Files – Eligibility – Internal Control over Tenant Files - Noncompliance & Significant Deficiency Housing Choice Voucher Program – ALN 14.871 Condition & Cause: We reviewed thirty Housing Choice Voucher tenant files and noted five files (16.7% of the sample) with exceptions related to the calculation and verification of annual income. Exceptions included data entry errors resulting in overstated income, errors in the annualization of earned income, failure to remove overpayments before calculating annual income, and contribution income that was not independently verified with the contributor or accurately reported on the 50058. Based on extrapolation, the potential misstatement of HAP expense due to the identified noncompliance is negligible. The exceptions identified above are attributable primarily to staff vacancies and turnover within the HCV department. Management of another housing authority during the review period may have placed additional demands on available staff and resources. Criteria: Housing Choice Voucher program participants are subject to eligibility and file documentation requirements established by 24 CFR Part 982, 24 CFR § 5.609, HUD Handbook 4350.3, applicable HUD notices, and the Agency's HCV Administrative Plan. Effect: Failure to accurately verify and calculate annual income can result in improper HAP payments, contrary to program requirements and the Agency's mission. Recommendation: Management should conduct a review of tenant files to determine the extent of income calculation and verification deficiencies beyond the sampled population. Additionally, management should evaluate and strengthen its existing quality control process to ensure exceptions are identified and corrected timely. This may include increasing the frequency or sample size of current file reviews until compliance improves to an acceptable level. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.