Finding Text
2024-001: Eligibility
Other Matter / Significant Deficiency
U.S. Department of Housing and Urban Development
ALN #14.195 – Section 8 Project Based Cluster
Criteria: The owner must reexamine the income and composition of all families at least every 12 months. After consultation with the family and upon verification of the information, the owner must make appropriate adjustments in the Total Tenant Payment in accordance with part 5 of this title and determine whether the family's unit size is still appropriate. (24 CFR 880.603(c))
Condition: We selected a sample of 7 re-examinations for participants in the Program and identified the following:
•Two instances in which the verifications obtained for the annual recertification could not be located.
•One instance in which the Organization relied on self-verification of pension income, without documenting why third-party verifications were not able to be obtained.
•One instance in which the Organization obtained sufficient verifications; however, the incorrect amount was used (Net pension amount was used instead of the gross amount).
Cause: Document retention issues with re-examination documents.
Effect: As a result of being unable to locate certain required documentation, the Organization cannot fully support participant eligibility.
Questioned Costs: None
Context: We selected a sample of 7 re-examinations from a population of 50 participants. This was not a statistically valid sample.
Repeat Finding: Not a repeat finding.
Recommendation: We recommend that the Organization perform a quality control review to ensure that the appropriate documentation has been retained.