Finding Text
2023-003 Eligibility
Housing Voucher Cluster
Material Weakness in Internal Control
Material Noncompliance
Condition: Out of an approximate population of 1,500 of Housing Voucher Cluster tenants the
following deficiencies were noted:
Mainstream Voucher AL #14.879 (a total of 5 tenants selected for testing):
• Five files did not have supporting documents needed to determine eligibility.
Emergency Housing Voucher AL #14.871 (a total of 5 tenants selected for testing):
• Four files did not have supporting documents needed to determine eligibility, and
• One files did not have an annual recertification performed.
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 timely, complete, and accurate tenant files.
Context: The auditor randomly selected tenant files out of the population from each program as
outlined, which we consider to be a statistically valid sample size. 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 and operational challenges during the onset of COVID-
19 and did not have the available staff to follow the established internal controls to ensure proper
compliance with regards to timely recertifications and collection of required HUD documentation to
verify eligibility and calculate accurate housing assistance payments.
Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could
result in the incorrect amount of rental assistance provided.
Questioned Costs: Unknown.
Auditor Recommendations: The Authority should reevaluate their established procedures and
controls in place to ensure full compliance in regards to eligibility and the timeliness of recertifications.
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.