Finding 1076867 (2023-004)

Federal Program U.S. Department of Housing and Urban Development AL #14.850 – Significant Deficiency Federal Award Year 2023 Criteria The PHA must determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5, Subpart F (24 CFR sections 5.601 et seq., and 24 CFR sections 960.253, 960.255, and 960.259). Condition We tested compliance with the Authority’s eligibility in 40 tenant files and found that 3 TTP’s were incorrect due to the Authority calculating an incorrect rent payment. Questioned Costs None Context We reviewed a sample of 40 of the Authority’s 174 outstanding tenant files for eligibility requirements. Effect Tenants may not be paying the proper rent amount in accordance with their income and eligibility factors. Cause Lack of controls and oversight during the year. Repeat Finding Not a repeat finding. Recommendation We recommend there be a second party review of the file to ensure all calculations are correct and appropriate documents are included. Views of Responsible Officials The Authority recognizes the deficiency and plans to implement the auditor’s recommendation.