Finding 1057282 (2023-002)

Finding 2023-002 - Housing Choice Voucher Tenant Flies - Eligibility - Internal Control over Tenant Files - Noncompliance & Significant Deficiency Housing Choice Voucher Program -ALN 14.871 Condition & Cause: We randomly selected one hundred ten (110) tenant files for review. We noted forty-five (45) tenant files were out of compliance in one or more categories. Of these, seven (7) files, or 6.3% of our sample, were impacted by errors related to adjusted annual income. We were able to extrapolate identified misstatements of HAP and found the potential misstatement to represent 0.19% of program I-IAP expense, which is immaterial to the financial statements. In our review, we noted: • Thirty-eight (38) annual reexaminations that were conducted more than three months late; • Four (4) instances of miscalculations of annual income; • Three (3) instances of missing or improper income verification; • One (1) instance of improper verification of deductions; and • One (1) file that was missing the action under review. We noted that the Agency has experienced difficulty in hiring and retaining quality staff. The Housing Choice Voucher department had many staff vacancies, including the position of HCV Director, during the audit period under review. Criteria: The Code of Federal regulations, the Housing Authority Administrative Plan and specific HUO guidelines in documenting and maintaining Housing Choice Voucher tenant files. Effect: Failure to complete timely reexaminations or properly verify and calculate annual income can result in a misstatement of HAP expense leading to improper funding for the HCV program. Misstatements of HAP may cause an undue financial burden to the participant, which is incongruent with the mission of the Agency. Additionally, noncompliance can result in a decrease of vouchers or loss of program funding. Recommendation: We note that the Authority has already implemented internal quality control processes for most actions affecting the tenant files. We recommend continuing monitoring implemented internal controls for improvement and, if necessary, installing additional controls or staff training as needed to meet compliance standards. Questioned Co5ts: None Repeat Finding: No Was sampling statistically valid? Yes Viewsof responsible officials: The PHA agrees with the results of the audit and recommendations.