Finding 1123540 (2024-003)

2024-003 – Documentation of Controls – Significant Deficiency U.S. Department of Housing and Urban Development 14.871 – Section 8 Housing Choice Vouchers E. Eligibility / N. Special Tests and Provisions Condition: During review of the Housing Choice Voucher (“HCV”) program, RBT noted that the Authority was not appropriately maintaining documentation of the controls over Eligibility, Reasonable Rent, Utility Allowance, and HQS Inspections. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts (such as 24 CFR Section 982), and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority does not have a central, uniform location to document the controls in place over Eligibility, Reasonable Rent, Utility Allowance, and HQS Inspections. Effect: Potential noncompliance if a control is missed. Questioned Costs: None identified. Perspective: Although the Authority was in compliance with the noted compliance attributes, none of the 40 tenant files selected for testing contained documentation of the internal controls performed. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the Authority maintain the checklist that the Tenant Housing Representatives use during the recertification process to ensure all compliance requirements are met. The checklist should be signed or initialed by the representative and maintained in the tenant’s file. This checklist will serve as documentation that all compliance requirements were verified for the tenant. Auditee’s Response: See corrective action plan.