Finding Text
– Tenant Eligibility Requirements
• Federal Program: Public and Indian Housing, Federal Assistance Listing No. 14.850
• Criteria or specific requirement: Eligibility requirements in accordance with 24 CFR 960 relating to admission to, and occupancy of, public housing.
• Condition: The audit identified exceptions in tenant files exams relating to rent calculation, income, and deduction verification, executed Forms 50058, and an overdue reexamination.
• Context: In a review of twenty-three tenant eligibility files:
1. One file contained a rent calculation error.
2. Two files were noted where the HUD-50058 did not agree with the tenant’s file.
3. One file lacked verification of income.
4. One file did not have support for childcare costs.
5. One file was noted with an overdue re-examination.
• Effect: The errors noted are due to lack of supporting documentation.
• Cause: Weakness in internal controls over tenant’s annual certifications relating to proper documentation and calculation of rent.
• Identification as a repeat finding: This is a repeat finding (See 2023-003).
• Recommendation for Corrective Actions: Establish procedures for management review and supervision over tenant’s annual certifications. Specific internal control procedures should be implemented to ensure, for both family income examinations and reexaminations, documentation in the family file of (1) waiting list documentation; (2) properly executed rent choice documentation; (3) utility allowance schedule annually and (4) other factors that affect the determination of adjusted income or income- based rent in accordance with CFR section 960.
• Views of Responsible Officials and Planned Corrective Actions: We will review tenant’s files for the
deficiencies identified above and implement new internal control procedures to correct these conditions. We will also provide increased supervision and training over this area. We anticipate a complete resolution of this type of error by February 28, 2025.