FAC Explorer

Finding 1105144 (2024-002)

Significant Deficiency
Requirement
E
Questioned Costs
$1
Year
2024
Accepted
2025-03-18
Audit: 346706
Organization: County of Kent, Michigan (MI)
Auditor: Rehmann Robson LLC

AI Summary

  • Core Issue: One tenant's file lacked income verification, leading to potential inaccuracies in Housing Assistance Payments (HAP).
  • Impacted Requirements: Compliance with HUD regulations on tenant income verification and documentation is essential to avoid administrative errors.
  • Recommended Follow-Up: Establish a policy to ensure all tenants have documented income verification before HAP calculations and disbursements.

Finding Text

2024-002 – Documentation of Tenant Eligibility Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Eligibility). Program. Housing Voucher Cluster; Housing Choice Vouchers; U.S. Department of Housing and Urban Development; Assistance Listing Number 14.871; Award Numbers FSS23MI5588 and MI198VO. Criteria. Public housing agencies (PHAs) must: 1) 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), and 2) Use the Enterprise Income Verification (EIV) system in its entirety to verify tenant employment and income information during mandatory reexaminations of family composition and income in accordance with 24 CFR 5.233; and reduce administrative and subsidy payment errors in accordance with 24 CFR 5.236 and other administrative guidance issued by HUD. Condition. For 1 of 40 tenants tested, there was no evidence of income verification included in the tenant file. Cause. The cause of this condition appears to be management oversight. Effect. Because of this condition there was an increased risk that this tenant's Housing Assistance Payment (HAP) could be assessed inaccurately. Questioned Costs. As the total of HAP made for this tenant in the year ended September 30, 2024 was less than the reportable threshold, no questioned costs are reported. Recommendation. The County should implement a policy requiring all tenants have a documented income verification prior to calculating or disbursing HAP. View of Responsible Officials. Management concurs with the audit assessment regarding this matter. It should be noted that the HCV program ended as of December 31, 2024. For the period of October 1 through December 31, 2024, department will take necessary action to correct the stated deficiency.

Categories

Questioned Costs HUD Housing Programs Eligibility Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 528693 2024-001
    Significant Deficiency
  • 528694 2024-001
    Significant Deficiency
  • 528695 2024-001
    Significant Deficiency
  • 528696 2024-001
    Significant Deficiency
  • 528697 2024-001
    Significant Deficiency
  • 528698 2024-001
    Significant Deficiency
  • 528699 2024-001
    Significant Deficiency
  • 528700 2024-001
    Significant Deficiency
  • 528701 2024-002
    Significant Deficiency
  • 528702 2024-002
    Significant Deficiency
  • 528703 2024-002
    Significant Deficiency
  • 528704 2024-002
    Significant Deficiency
  • 528705 2024-002
    Significant Deficiency
  • 528706 2024-002
    Significant Deficiency
  • 528707 2024-002
    Significant Deficiency
  • 528708 2024-002
    Significant Deficiency
  • 1105135 2024-001
    Significant Deficiency
  • 1105136 2024-001
    Significant Deficiency
  • 1105137 2024-001
    Significant Deficiency
  • 1105138 2024-001
    Significant Deficiency
  • 1105139 2024-001
    Significant Deficiency
  • 1105140 2024-001
    Significant Deficiency
  • 1105141 2024-001
    Significant Deficiency
  • 1105142 2024-001
    Significant Deficiency
  • 1105143 2024-002
    Significant Deficiency
  • 1105145 2024-002
    Significant Deficiency
  • 1105146 2024-002
    Significant Deficiency
  • 1105147 2024-002
    Significant Deficiency
  • 1105148 2024-002
    Significant Deficiency
  • 1105149 2024-002
    Significant Deficiency
  • 1105150 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $3.06M
93.563 Child Support Services $1.47M
14.871 Section 8 Housing Choice Vouchers $1.25M
93.268 Immunization Cooperative Agreements $1.23M
10.569 Emergency Food Assistance Program (food Commodities) $1.17M
93.569 Community Services Block Grant $963,480
14.218 Community Development Block Grants/entitlement Grants $520,051
16.320 Services for Trafficking Victims $423,726
10.568 Emergency Food Assistance Program (administrative Costs) $408,100
10.565 Commodity Supplemental Food Program $388,028
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $349,683
93.658 Foster Care Title IV-E $270,219
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $265,841
21.027 Coronavirus State and Local Fiscal Recovery Funds $205,727
93.778 Medical Assistance Program $187,489
93.994 Maternal and Child Health Services Block Grant to the States $173,350
14.239 Home Investment Partnerships Program $171,411
10.555 National School Lunch Program $139,008
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $131,175
93.767 Children's Health Insurance Program $118,145
16.738 Edward Byrne Memorial Justice Assistance Grant Program $97,867
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $97,501
93.137 Community Programs to Improve Minority Health $93,121
14.896 Family Self-Sufficiency Program $93,040
93.926 Healthy Start Initiative $85,128
16.922 Equitable Sharing Program $84,519
16.606 State Criminal Alien Assistance Program $84,301
93.788 Opioid Str $72,600
10.553 School Breakfast Program $57,478
20.601 Alcohol Impaired Driving Countermeasures Incentive Grants I $56,600
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $55,585
93.069 Public Health Emergency Preparedness $50,779
81.042 Weatherization Assistance for Low-Income Persons $50,481
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $47,842
93.940 Hiv Prevention Activities Health Department Based $42,237
93.499 Low Income Household Water Assistance Program $30,000
93.967 Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health $26,335
14.231 Emergency Solutions Grant Program $22,001
14.905 Lead Hazard Reduction Demonstration Grant Program $21,552
20.703 Interagency Hazardous Materials Public Sector Training and Planning Grants $21,142
97.042 Emergency Management Performance Grants $18,647
20.600 State and Community Highway Safety $18,351
93.568 Low-Income Home Energy Assistance $17,006
93.597 Grants to States for Access and Visitation Programs $15,140
93.991 Preventive Health and Health Services Block Grant $14,924
93.558 Temporary Assistance for Needy Families $13,997
93.959 Block Grants for Prevention and Treatment of Substance Abuse $12,493
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $12,028
97.067 Homeland Security Grant Program $10,617
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $9,198
93.053 Nutrition Services Incentive Program $8,782
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $7,562
93.516 Public Health Training Centers Program $2,163
20.509 Formula Grants for Rural Areas and Tribal Transit Program $1,229
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $854
93.946 Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative Programs $625