Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Voucher Cluster
Assistance Listing Number: 14.871/14.879
Federal Award Identification Number and Year: DC001VO - 2023
Award Period: October 1, 2022 – September 30, 2023
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Material Noncompliance (Modified Opinion)
Criteria or Specific Requirement: For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516).
Condition/Context: Exceptions noted in 27 out of 40 non-MTW HCV files tested:
• For 3 of 40 files tested, we were not provided with any supporting documentation to verify eligibility.
• For 13 of 40 samples, we were unable to recalculate the income total listed on the HUD-50058 based on the income support provided.
• For 11 of 40 samples, we did not observe 3rd party verification of reported income.
• For 4 of 40 samples, we did not observe 3rd party verification of reported assets.
• For 4 of 40 samples, we did not observe documentation showing that the head of household was the parent or legal guardian to a dependent for which an allowance was granted or we did not receive documentation for medical expenses.
• For 14 of 40 samples, we did not observe support in the tenant file indicated that family income and composition were examined on a biennial basis.
• For 11 of 40 samples, we did not observe the "Authorization for Release of Information/Privacy Act Notice form (HUD-9886) singed by the tenant and all members in the household over the age of 18 for the recertification date listed.
• For 5 of 40 samples, we did not observe the general release form signed by the tenant and all members in the household over the age of 18, allowing the Authority to obtain information from third parties.
• For 8 of 40 samples, we did not observe a recertification checklist, or a substitute application, showing a specialist's signature.
Questioned Costs: Unable to determine.
Cause: The Authority did not sufficiently monitor controls to ensure compliance with eligibility requirements.
Effect: The Authority is not in compliance with federal regulations regarding eligibility. Tenant rent or HAP may have been miscalculated due to using incorrect information in the recalculations. Tenant recertifications were not shown to be performed on a timely basis.
Repeat Finding: The finding is a repeat of finding 2022-003 in the prior audit period.
Recommendation: We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit.
Views of Responsible Officials: There is no disagreement with the audit finding.