Finding Text
Finding 2024-002 – Low Rent Public Housing Tenant Files – Eligibility – Rent Calculations
Noncompliance & Material Weakness
Low Rent Public Housing – ALN 14.850
Condition & Cause:
Our review of forty (40) Low Rent Public Housing tenant files identified noncompliance in ten (10) files, or 25% of our sample. All instances of noncompliance were related to the verification and calculation of adjusted annual income. Common errors included:
• Failing to properly verify and report income or allowances on the 50058 forms from the Application for Continued Occupancy and/or the EIV system
• Using nonconsecutive pay stubs to calculate average gross pay
• Conducting improper year-to-date analyses
We observed that the Agency faced challenges in hiring, training, and retaining qualified staff throughout the fiscal year. This likely contributed to lapses in adherence to regulations, affecting the accuracy of tenant income calculations. We feel that the conditions are present to potentially have a material impact on the financial statements.
Criteria:
The Code of Federal Regulations, the Housing Authority’s Admissions and Continued Occupancy Policy (ACOP), and specific HUD guidelines in documenting and maintaining Public Housing tenant files.
Effect:
Improper calculation and documentation of tenant income can lead to incorrect calculation of rental charges and misstatements in the financial statements. Ongoing noncompliance may also draw scrutiny from regulatory bodies, increasing the risk of financial penalties or loss of funding for the Public Housing program.
Recommendation:
We recommend that the Agency perform a comprehensive audit of tenant files for existing tenants to identify any additional deficiencies and assess the need for further staff training. Additionally, we suggest that the Agency enhance its quality control reviews to effectively monitor compliance with local and federal regulations regarding the maintenance of tenant files.
Questioned Costs: Based on our extrapolation, we estimate that the likely questioned costs are approximately $49,346. This amount accounts for 2.27% of dwelling rental income.
Repeat Finding: No
Was sampling statistically valid? Yes
Views of responsible officials: The PHA agrees with the results of the audit and recommendations.