Finding 1085799 (2024-004)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
$1
Year
2024
Accepted
2024-11-20

AI Summary

  • Core Issue: The Commission failed to comply with federal eligibility requirements for tenant reexaminations, leading to potential miscalculations in tenant rents.
  • Impacted Requirements: Annual reexaminations, proper utility allowances, third-party income verification, and signed leases were not consistently followed.
  • Recommended Follow-Up: Strengthen controls to ensure compliance with eligibility requirements, address discrepancies, and review all tenant files for adherence to regulations.

Finding Text

Criteria- The Public Housing Occupancy Guidebook and other HUD PIH Notices and Handbooks provide requirements and guidance for which the Public Housing Program is to be administered and operated under with respect to tenant eligibility and reexaminations. Specifically, the Commission must conduct annual reexaminations for all persons and families assisted under the Program. As a condition of a tenant's admission or continued occupancy, the Commission is required to adjust the tenant rent and housing assistance payment as necessary using documentation from third-party verification (24 CFR Sections 960.253, 960.257, and 960.259). Condition- During audit fieldwork, 10 tenant files were requested and reviewed for compliance with Program eligibility and reexamination requirements. The following discrepancies were noted: - 1 tenant file could not be located -2 files did not perform annual recertifications -2 files did not use the correct Utility Allowance -3 files were missing a third party verification of income -3 files did not run EIV -2 files did not have signed leases Questioned Cost- Known and projected misstatement: $17,486 Context- 24 CFR 960 addresses admissions to and occupancy of Public Housing; 24 CFR 965.505 addresses utility allowances; other PIH notices, HUD handbooks, and CFR's address all other required forms. Effect- Non-compliance with the federal Eligibility requirement. Tenant rents may be miscalculated, other notifications and documentations may be missing. Cause- Failure to execute controls over the federal Eligibility compliance requirement Recommendation- We recommend the Commission implement and execute strengthened controls over the federal Eligibility compliance requirement to include the performance of annual reexaminations and documentation maintenance; the above discrepancies need to be addressed, and all tenant files should be reviewed for compliance.

Categories

Questioned Costs HUD Housing Programs Eligibility

Other Findings in this Audit

  • 509357 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 Public Housing Operating Fund $404,214
14.872 Public Housing Capital Fund $220,471
14.871 Section 8 Housing Choice Vouchers $200,173