Finding 1103486 (2024-003)

US Department of Housing and Urban Development Direct Award Program Name Housing Choice Vouchers Compliance Significant Deficiency E Eligibility ALN 14.871 2024-003 Annual Re-Examination Criteria According to (24 CFR §§982.516) the PHA must conduct a re-examinations of family income and composition at least annually. Condition During the audit, we noted multiple participants having re-examininations not in accordance with the above criteria. The re-examinations were outside the 12 month requirement. Context The Authority had roughly 270 vouchers issued throughout the fiscal year under examination which would translate to 3.240 Housing Assistance Payment transactions for the year. Of these we reviewed 40 individual Housing Assistance Payment transactions, and found 8 instances of noncompliance. Resulting in a 20% error rate. Extrapolation over all transactions that would result in 648 HAP transactions with this error. Cause Controls over compliance associated with the Authority’s grants of federal funds are inadequate. Effect The Authority was in violation of the Federal Regulation which resulted in errors in calculating Housing Assistance Payments (HAP). Recommendations We recommend that management implement procedures to ensure compliance with the above regulations as it relates to the Section 8 Housing Choice Voucher Program. Management Views Management agrees, see Corrective Action Plan.