Finding 1114550 (2024-001)

2024-001 – ELIGIBILITY Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.871 – Housing Voucher Cluster CRITERIA PHA responsibility for reexamination and verification. (1) The PHA must conduct a reexamination of family income and composition at least annually. (2) 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 982.516) CONDITION As a result of our audit, we identified nine (9) instances of missing income verifications or insufficient verifications. CAUSE The Authority did not properly oversee the administration of the Housing Choice Voucher Cluster program compliance. EFFECT The Authority is potentially incorrectly calculating and adjusting tenant rent and housing assistance payments which could create a burden on either the housing authority or the participant. QUESTIONED COSTS None identified. CONTEXT We selected a sample of 17 from a population of 172. This was not a statistically valid sample. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority’s management take an active role in reviewing their policies and monitoring the Authority’s compliance with those policies. We recommend that the Authority provide training for the performance of reexamination procedures. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.