Finding 1077500 (2023-002)

Finding Reference: 2023-002 Federal Agency: US. Department of Housing and Urban Development Federal Program(s): Section 8 Housing Choice Vouchers ALN: 14.871 Category of Finding: Eligibility (E) Type of Finding: Noncompliance; Significant Deficiency CONDITION: The Authority’s Housing Choice Voucher program contains atleast one tenant whose income was not verified with current EIV Income Reports, as required by the PHA’s Administrative Plan and HUD regulations. CRITERIA: Tenants of the Housing Choice Voucher (HCV) program are required to be recertified biannually and on the interim basis in accordance with HUD regulations. Recertification guidelines require use of the Enterprise Income Verification (EIV) System to verify tenants’ reported incomes during biannual recertifications and within 120 days of admission into the HCV program. QUESTIONED COSTS: The amount of questioned costs could not be determined. CONTEXT: During audit fieldwork, 40 HAP contract files from a statistically valid sample were examined for compliance with EIV use requirements. Of the files examined, 1 file did not contain documentation that tenants’ reported income was verified with current EIV Income Reports within 120 days of admission into the HCV program. EFFECT: The PHA could be issuing incorrect housing assistance payments on behalf of tenants who are not paying the appropriate amount of rent per program regulations. CAUSE: The overall cause was a lack of effective management oversight and quality control over this program. RECOMMENDATION: We recommend the PHA design and implement a corrective action plan that will assure compliance with the Uniform Guidance and the compliance supplement. MANAGEMENT’S RESPONSE See separately prepared Corrective Action Plan.