Finding Text
Federal Program: U.S. Department of Housing and Urban Development AL #14.871 - Significant Deficiency. Criteria: Determine income eligibility and calculate the tenant's rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516). Additionally, as a condition of admission or continued occupancy, the Authority must require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Condition: We tested compliance with the Authority's eligibility in 40 tenant files and found that one tenant's housing assistance payment was understated due to the Authority using an incorrect rent payment. Additionally, we noted one tenant file in which the tenant's Social Security Number was not documented. Questioned Costs: None. Context: We reviewed a sample of 40 of the Authority's 472 tenant files for eligibility requirements. Effect: During our review of tenant files, one tenant's verified income was incorrectly calculated and entered into the rent determination worksheet, resulting in the tenant's rent and HAP portion to be miscalculated. The error noted remained undetected after completion of a quality control worksheet, which functions as the Authority's primary internal review process to ensure an annual certification, at minimum, was performed and appropriate tenant information is documented. Additionally, HAP payments could have been paid to a tenant who was not eligible to receive the payments. Cause: Lack of controls and oversight during the year. Repeat Finding: Not a repeat finding. Recommendation: We recommend there be a second party review of the file to ensure all calculations are correct and appropriate documents are included. Views of Responsible Officials: Management recognizes the deficiency and plans to implement the auditor's recommendation.