Finding 1096219 (2024-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-01-20
Audit: 338911
Organization: Covington Housing Authority (TN)
Auditor: Miller & Rose PA

AI Summary

  • Core Issue: Nine out of 23 family files had overdue annual reexaminations, risking incorrect rent charges.
  • Impacted Requirements: Compliance with HUD regulations on tenant eligibility verification and timely income reexaminations is not being met.
  • Recommended Follow-up: Create a master calendar for scheduling annual reexaminations and set benchmarks for timely notifications and processes.

Finding Text

2024-001 FAMILY FILE DEFICIENCIES FALN No. 14.850 – Public and Indian Housing Condition and Criteria: The Authority’s purpose for existence is providing decent, safe, and affordable housing to low-income persons. As such, the Authority prepares a file for each admitted family, which contains information necessary to determine eligibility for assistance and calculations of rent to be charged to eligible families. HUD regulations prescribe the content of these family files. These requirements consist of the following: a. As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility. b. For both family income examinations and reexaminations, obtain and document in the family file third party verification of: (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent. c. Determine income eligibility and calculate the tenant’s rent payment in accordance with HUD regulations. d. Select tenants from the public housing waiting list in accordance with the PHA’s tenant selection policies. e. Re-examine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary. Context: Our review of 23 family files revealed nine files with delinquent annual reexaminations. Effect: Delays in performing annual reexaminations may result in under charging the tenant rent and thus understanding dwelling rental income. Cause: Proper scheduling and lack of other procedural control have resulted in untimely performed annual reexaminations. Recommendation: The Authority should establish a master calendar to ensure all tenants are scheduled for their annual reexaminations. The Authority should also establish benchmarks for timing of certain annual reexaminations functions such as notice to tenants of the pending reexam and others as applicable.

Categories

HUD Housing Programs Eligibility Reporting

Other Findings in this Audit

  • 519777 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $932,102
14.872 Public Housing Capital Fund $344,627