Finding Text
2024-001 Eligibility
Housing Voucher Cluster
Significant deficiency in internal control
Other Matter to be Reported Under the Uniform Guidance
Condition: Out of a population of approximately 1,700 for Housing Voucher Cluster, 41 tenant files were tested and 4 files had the following deficiencies:
• Two files had incorrect payment standard;
• One file had incorrect income calculation standard; and
• One file was missing an EIV report for the annual recertification.
Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files.
Context: The auditor randomly selected 41 tenant files out of the population which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files.
Cause: The Authority does not have adequate systems and controls in place to ensure all of the eligibility requirements are being followed.
Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided.
Questioned Costs: Unknown
Auditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample.
Management Response: See the Corrective Action Plan in this report