Finding Text
Finding 2024-001
Subject: Section 8 Housing Choice Voucher Program – Tenant Eligibility and Reexaminations
Federal Agency: Department of Housing and Urban Development
Federal Program: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Number and Year (or Other Identifying Number): CY 2024
Pass-Through Entity: Not applicable
Compliance Requirement: Eligibility
Audit Finding: Significant Deficiency
Condition and Context:
During audit fieldwork, 40 tenant files were reviewed for compliance with Program eligibility and
reexamination requirements. The following discrepancies were noted:
9 files miscalculated total tenant payment. 6 errors were due to miscalculation of wages or income. 3
resulted from incorrect deductions applied.
5 files did not use the correct Utility Allowance
Noted 5 instances of misalignment of utility responsibilities across HAP contract, Request for Tenancy
Approval, and Lease
Criteria:
24 CFR section 982.516 states in part
“Except as provided in paragraph (a)(3) of this section, the PHA must obtain and document in the
tenant file third-party verification of the following factors, or must document in the tenant file why
third-party verification was not available:
(i) Reported family annual income;
(ii) The value of assets;
(iii) Expenses related to deductions from annual income; and
(iv) Other factors that affect the determination of adjusted income.”
24 CFR section 982.52 HUD requirements states
“The PHA must comply with HUD regulations and other HUD requirements for the program. HUD
requirements are issued by HUD headquarters, as regulations, Federal Register notices or other
binding program directives”
Cause:
Failure to execute internal controls over the federal Eligibility compliance requirement.
Effect:
Non-compliance with the federal Eligibility requirement. Tenant rents may be miscalculated, other
notifications and documentations may be missing.
Questioned Cost:
Known and projected misstatement: $27,932
Recommendation:
We recommend the Authority implement and execute strengthened controls over the federal Eligibility
compliance requirement to include the performance of annual reexaminations and documentation
maintenance; the above discrepancies need to be addressed, and all tenant files should be reviewed for
compliance.