Finding Text
Finding SA2019-005: Timeliness and Accuracy of Voucher Payments
AL number: 14.871
AL Title: Housing Voucher Cluster - Section 8 Housing Choice Vouchers
Name of Federal Agency: Department of Housing and Urban Development
Federal Award Identification number and year: CA010 (2019)
Criteria: 24 CFR part 982 requires that monthly housing assistance payments on behalf of tenants to landlords be made in accordance with the tenants’ Housing Assistance Payment (HAP) contract for the Section 8 Housing Choice Vouchers (HCV) program. Payments made should be processed in a timely manner, usually at the beginning of each month and the payments should be made in the correct amount each month in accordance with the HAP contracts for the tenants.
Condition: We tested sixty HCV tenants’ HAPs made to landlords in June 2019 and noted the following:
o Twelve tenants that did not have HAP contract documentation indicating the amount of the HAP contract to support the payments made, that totaled $15,374 for the twelve tenants selected for testing.
o One tenant was paid in the amount of $1,820. However, the payment should have been made in the amount of $1,391.
o One tenant was paid in the amount of $1,525. However, the payment should have been made in the amount of $1,549.
o One tenant was paid in the amount of $1,342. However, the Housing Authority indicated that the tenant was deceased and should not have received rent that month.
o Six tenant files could not be located as noted in finding SA 2019-006. HAP payments to three of the tenants totaled $4,183. No HAP payments were made to the other three tenants and the Authority was not able to explain why.
Effect: When HAPs are not paid timely or correctly, the Authority runs the risk of unpaid contracts and the Authority is not in compliance with the housing payment requirements for the HCV program.
Cause: The above condition was caused by staff turnover and management oversight.
Identification as a repeat finding: Yes. Since fiscal 2017.
Questioned Costs: We question all costs noted above in the total amount of $21,328.
Recommendation: The Authority must develop procedures to ensure that payments are made timely and accurately in accordance with grant requirements.
Since the Housing Authority transferred the Housing Choice Vouchers (HCV Section 8) program to the Housing Authority of the County of Contra Costa (HACCC) on July 1, 2019, the Housing Authority should work with the HACCC to determine how to address the recommendation.
View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the Authority.