Finding Text
Finding 2024-001 – Housing Choice Voucher Program Tenant Files – Eligibility – Internal Control over Tenant Files – Noncompliance and Material Weakness - Housing Choice Voucher Program – ALN 14.871
Condition & Cause: We reviewed 100 Housing Choice Voucher tenant files to assess compliance with federal regulations and local policies. We found that 17 files had annual reexaminations completed more than three months past the due date, with an average delay of slightly over five months. Notably, the percentage of materially late reexaminations decreased from 27% in the previous year’s audit to 17% this year. Additionally, two files lacked documentation of a Housing Quality Standards (HQS) inspection conducted within the past 24 months.
We attribute these discrepancies to the Agency’s ongoing challenges in hiring, training, and retaining qualified staff in the HCV department.
We also observed discrepancies between the timeliness of annual reexaminations and the Authority’s FY 2024 SEMAP self-assessment for Indicator #9. Although we reviewed the supporting documentation for this indicator without finding deviations, it is important to investigate the discrepancy, especially since the Authority had a similar audit finding in the prior year (Finding 2023-001).
Criteria: 24 CFR 982, the Housing Authority’s Administrative Plan, and specific HUD guidelines on documenting and maintaining Housing Choice Voucher tenant files.
Effect: Late annual reexaminations can lead to inaccurate subsidy calculations, potentially resulting in overpayments or underpayments to landlords, thereby jeopardizing the program’s integrity.
Recommendation: We recommend that the Agency identify and complete all overdue reexaminations promptly. The Agency should also continue to monitor this area for compliance to prevent future discrepancies.
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.