Finding Text
Condition: Out of an approximate population of 20,000 of Housing Voucher Cluster, 40 tenant files
were tested and the following deficiencies were noted:
• One file did not have the required 214 declaration form;
• Two files could not support the utility allowance calculation;
• One file did not have third party verification of income; and
• One file did not have the required rent reasonableness check.
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 tenant files out of the population from each program as
outlined, 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 experienced staffing turnover and did not have the available staff to fully
implement the established internal controls to ensure proper compliance with regards to timely
recertifications and collection of required HUD documentation to complete the tenant files.
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 continue to train staff on the established
procedures and controls in place to ensure full compliance in regard to eligibility. 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