Finding 1062590 (2023-001)

Finding 2023-001 – 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 two hundred thirty-nine (239) Housing Choice Voucher tenant-based and project-based assistance tenant files and noted forty-three (43) files that were out of compliance. These files fell into one or both of two noncompliance categories: • Twenty (20) files, or 8.4% of our sample, contained errors related to adjusted annual income. The income discrepancies consisted of twelve (12) files with missing or outdated verification of income and eight (8) files with miscalculations of adjusted annual income. The extrapolated impact of the net misstatement of adjusted annual income was immaterial to the financial statements. • Twenty-five (25) files had an annual reexamination that was completed more than three months past the due date. It was noted that the Authority has experienced difficulties in getting tenants and third parties to return recertification documentation. Criteria: The Code of Federal regulations, the Housing Authority Administrative Plan and specific HUD guidelines in documenting and maintaining Housing Choice Voucher tenant files. Effect: Failure to conduct timely recertifications and to properly calculate annual income can result in a misstatement of HAP expense leading to improper funding for the HCV program. Misstatements of HAP may also cause an undue financial burden to the participant, which goes against the mission of the Agency. Additionally, noncompliance can result in a decrease of vouchers or loss of program funding. Recommendation: We recommend that the Agency conduct a tenant file audit of existing tenants in the HCV program to determine the extent of any additional misstatements of HAP expense. We also recommend that the Agency increase their monitoring and quality control review of the HCV program files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. Our experience with agencies that increase monitoring and review of the files is that there are dramatically decreased error rates. Questioned Costs: None Repeat Finding: Yes Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.