Finding Text
2022-001 – ELIGIBILITY: RENT CALCULATION
Material Weakness/Material Noncompliance
U.S. Department of Housing and Urban Development
ALN #: 14.871– Housing Voucher Cluster
CRITERIA
For both family income examinations and reexamination, obtain and document in the family file third-party verification of (1) reported family annual income (2) the value of assets (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR Section 982.516). 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.) (24CFR sections 982.201, 982.515, 982.516).
CONDITION
As a result of our procedures, we identified five instances of missing income verification.
CAUSE
The Authority’s system of internal controls over the participant recertification process was not
sufficient to meet the requirements established by HUD.
EFFECT
Redetermination of tenant’s rent and the housing assistance payment was not performed in
accordance with HUD regulations. As a result, tenants may have paid more or less in rent than
they should have paid.
QUESTIONED COSTS
None noted.
CONTEXT
We selected a sample of 25 vouchers from a population of 498. This was not a statistically
valid sample.
REPEAT FINDING
Not a repeat finding.
RECOMMENDATION
We recommend that the Authority develop and implement a recertification checklist to accompany the tenant file to ensure all required documentation is obtained.
AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
See Corrective Action Plan.