Finding Text
2024-002 Eligibility
Public and Indian Housing
Significant deficiency in internal control
Other Matter to be Reported Under the Uniform Guidance
Condition: Out of a total tenant population of approximately 430 for Public and Indian Housing, 44 tenant files were tested and 8 files had the following deficiencies:
• Six files had incorrect or missing flat rent option sheets;
• One file was missing a custody information; and
• One file had incorrect income calculation.
Criteria: The Authority’s ACOP and 24 CFR 960.257 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding complete and accurate tenant files for all public housing sites.
Context: The auditor randomly selected 44 tenants out of the population, which we consider to be a statistically valid sample size, for testing tenant files for eligibility. The auditor reviewed the tenant file and support to ensure controls over compliance were operating effectively.
Cause: Public housing sites do not have adequate systems and controls in place to ensure all of the eligibility requirements are being followed.
Effect: The Authority is not in full compliance with all of the HUD requirements regarding eligibility and tenant recertification which could result in incorrect amount of rental assistance being provided.
Questioned Costs: Unknown
Auditor Recommendations: The Authority should correct the deficiencies noted in the tested files and perform reviews of the remaining universe, for consideration of similar errors. In addition, the Authority should establish quality control review procedures to ensure proper monitoring of compliance with the requirements related to tenant eligibility.
Management Response: See the Corrective Action Plan in this report.