Finding 1099140 (2024-001)

Finding 2024-001 - Moving to Work Demonstration ALN 14.881 - Income Verification Requirements, Eligibility - Noncompliance & Significant Deficiency Condition & Cause: We reviewed a sample of sixty-five (65) tenant files, which included both Public Housing and Housing Choice Voucher participants. Of these, eight (8) files were found to be noncompliant, representing approximately 12% of the sample. Specifically, three (3) files lacked the required Enterprise Income Verification (EIV) documentation, and five (5) files relied on tenant self-declarations for income verification without documenting efforts to obtain the preferred third-party verification. The cause of this noncompliance, as discussed with management, ls attributed to staff vacancies and challenges in hiring and retaining qualified personnel. This staffing issue has likely contributed to the oversight and failure to consistently adhere to income verification requirements. Criteria: The Code of Federal Regulations, the Housing Authority's Administrative Plan, Admissions & Continued Occupancy Policy, and MTW Plan, and specific HUD guidelines in documenting and maintaining Public Housing and Housing Choice Voucher tenant files. Effect: The absence of EIV documentation and reliance on tenant self-declaration without adequate third­ party verification efforts may result in inaccurate income assessments, potentially affecting eligibility and rent calculations. Recommendation: we recommend that the PHA enhance quality control review procedures to ensure all tenant files contain the required EIV documentation and that efforts to obtain third-party verification of income are consistently documented. Questioned Costs: None· Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.