Finding 2023-003 Public Housing Tenant Files - Eligibility - Rent Calculations Federal Program: Public Housing Program -ALN 14.850, Grant Year 2022 & 2023 Condition & cause:
We reviewed seventy-five (75) Public Housing Tenant Files and noted seven (7) files not in compliance, or
9.3 %. We noted the ...
Finding 2023-003 Public Housing Tenant Files - Eligibility - Rent Calculations Federal Program: Public Housing Program -ALN 14.850, Grant Year 2022 & 2023 Condition & cause:
We reviewed seventy-five (75) Public Housing Tenant Files and noted seven (7) files not in compliance, or
9.3 %. We noted the following discrepancies:
• Two (2) files with no verification of income;
• Two (2) files that relied on tenant declaration without documenting the reason for not obtaining third-party verification; and
• Three (3) miscalculations of annual income.
The income calculation and verification deficiencies were the result of employee errors and failure by the Agency to properly review and correct the errors. We were able to extrapolate the total potential misstatement and found it to be immaterial to the financial statements. However, due to the percentage of files not in compliance, we feel the Agency has a significant deficiency in this area.
Corrective action planned:
Monroe Housing Authority will continue to develop more effective processes for measuring, monitoring, and reducing errors in subsidy payments due to rent calculation and tenant underreporting of income. Implementations and strategies to include:
• Resolution of income and rent issues identified in the report and communication to Tenants where applicable.
• Development and implementation of an ongoing quality control review process of income at initial certification and re-examination to mitigate wage/income calculation errors to PHA and tenants by:
o Hiring (1) FTE to perform quality control review of verification of income (upfront and/or a third party), and Tenant files upon new lease and re-examinations.
o Developing a Tenant File Review checklist to document the result of file reviews.
• Partner with the National Association of Housing and Redevelopment Officials (NAHRO) and other agencies, where applicable, to train staff on Public Housing Occupancy, Eligibility, Income and Rent training to accurately calculate Tenant Rent and avoid common errors in occupancy and eligibility functions in addition to understanding updates to the HUD-50058.
Person responsible for corrective action: Mr. William Smart, Executive Director, Housing Authority of the City of Monroe
Anticipated Completion Date: June 30, 2024