Finding Text
Finding 2024-001- Housing Choice Voucher Tenant Files- Eligibility- Rent Calculations Noncompliance & Significant Deficiency
Section 8 Housing Choice Voucher Cluster -ALN 14.871 and 14.879
Condition:
We reviewed sixty-five (65) tenant files from the HCV and Mainstream programs. We noted eight (8) files, or 12% of our sample, with instances of noncompliance related to adjusted annual income. Of these, two (2) files were missing proper income verification, five (5) files contained miscalculations of income, and one (1) file was missing deduction verification. We were able to numerically extrapolate these errors to the population and found the potential misstatement to be immaterial to program HAP expense. We believe the Authority has a significant deficiency in control in this area of compliance.
Cause:
We noted that the Leased Housing department was severely understaffed for a large portion of the fiscal year. The Authority contracted with a third-party vendor for assistance in processing reexaminations during this time. We believe the difficulty in hiring, training, and retaining quality staff to have been a contributing factor to the deficiencies.
Criteria:
The Code of Federal Regulations, the Authority's Administrative Plan, and specific HUD guidelines in documenting and maintaining Housing Choice Voucher tenant files.
Effect:
Improper verification and documentation of tenant reexaminations can result in misstatement of the financial statements, improper calculation of HAP subsidy, and noncompliance with Federal provisions governing the Housing Choice Voucher program.
Recommendation:
We recommend that the Authority conduct a file audit of existing tenants to determine the extent of the deficiencies. We also recommend that the Authority implement more extensive quality control reviews to adequately monitor compliance with regulations pertaining to the maintenance of tenant files.
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.