Finding 1092948 (2023-001)

Section 8 Housing Choice Vouchers Program - AL No. 14.871 Other Matter to Reported Under the Uniform Guidance Condition: Out of an approximate population of 2,214 tenants, 42 tenant files were tested and the following deficiencies were noted: One file had an annual recertification completed over 12 months after the previous recertification, this has been corrected by the Authority after the fiscal year-end One file had the incorrect payment standard used which resulted in an error in the HAP calculation, this has been corrected by the Authority One file contained an income calculation error which resulted in an error in the HAP calculation, this has been corrected by the Authority One tenant file could not be located Criteria: The Authority’s administrative plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding complete and accurate tenant files. Context: The auditor haphazardly selected 42 tenant files out of the population, which is considered to be a statistically valid sample. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing turnover and did not have the available staff to fully implement the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to complete the tenant files. Additionally, the implementation of online certifications and transitioning to paperless recordkeeping contributed to inconsistent electronic files being maintained. Effect: The Authority is not in full compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: None. Auditor Recommendations: The Authority should continue to train staff on the established procedures and controls in place to ensure full compliance in regard to eligibility. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. Management Response: See Corrective Action Plan.