Finding Text
Eligibility
Section 8 Housing Choice Vouchers Program - AL No. 14.871
Material Weakness in Internal Control
Material Noncompliance
Condition: Out of an approximate population of 2,256 tenants, a total of 39 tenant files were selected
for testing and the following deficiencies were noted:
Five files had an annual recertification completed over 12 months after the previous
recertification,
Six files did not have a valid 9886 release of information from within 15 months of
the annual recertification,
Eight files had the incorrect payment standard used,
One file contained an income calculation error,
One file had missing income support,
One file was missing photo identification for one adult tenant,
One file had 214 forms missing for 3 tenants, and
One file had a missing rent reasonableness form.
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 43 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.