Finding 1140251 (2024-003)

2024-003 Section 8 Housing Choice Voucher Cluster Federal Financial Assistance Listing 14.871 Section 8 Housing Choice Voucher Program Eligibility Significant Deficiency in Internal Control over Compliance Criteria: As required by HUD guidelines, the Commission is required to calculate the tenant’s rent payment using documentation from third-party verification used to calculate payment of assistance. Condition: The Commission’s control in place for review of the tenant’s rent payment used for tenant files on annual reviews was not operating effectively. In one of the 40 tenant files tested, the tenant’s payment amounts were calculated incorrectly. Cause: The Housing Representative used the incorrect income to annualize the income from the third-party verification. Effect: The reporting of an incorrect tenant rent payment could result in incorrect assistance being awarded. Questioned Costs: None Context/Sampling: A nonstatistical sample of 40 participants out of 198 participants were selected for eligibility testing. Repeat Finding from Prior Year(s): No Recommendation: We recommend additional random review completed on files by a second person to ensure calculations are completed correctly. Views of Responsible Officials: Management agrees with finding.