Finding 1142393 (2023-003)

Significant Deficiency Repeat Finding
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2025-06-24

AI Summary

  • Core Issue: One tenant's housing assistance payment was calculated incorrectly, and documentation for citizenship and lease agreements was missing in some files.
  • Impacted Requirements: Compliance with income eligibility verification and documentation standards as outlined in 24 CFR regulations.
  • Recommended Follow-Up: The Authority should enhance tenant file review procedures to ensure accurate calculations and complete documentation.

Finding Text

Federal Program U.S. Department of Housing and Urban Development AL #14.871 – Significant Deficiency. Criteria 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.) (24 CFR sections 982.201, 982.515, and 982.516). Additionally, as a condition of admission or continued occupancy, the Authority must require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Condition We tested compliance with the Authority’s eligibility in 40 tenant files and found that one tenant’s housing assistance payment was calculated incorrectly resulting in an incorrect HAP amount paid. Additionally, we noted one tenant file in which proof of citizenship was not maintained and two tenant files that did not have a signed lease agreement by the required parties. Questioned Costs None. Context We reviewed a sample of 40 of the Authority’s 491 tenant files for eligibility requirements. Effect HAP payments could have been paid to a tenant who was not eligible to receive the payments or tenants may not be provided the proper housing assistance in accordance with their income and eligibility factors. Cause Lack of controls and oversight during the year. Repeat Finding 2022-007 Recommendation We recommend the Authority reviews their procedures of tenant file reviews to ensure all calculations are correct and appropriate documents are included. Views of Responsible Officials Management recognizes the deficiency and plans to implement the auditor’s recommendation.

Categories

HUD Housing Programs Eligibility Significant Deficiency

Other Findings in this Audit

  • 565951 2023-003
    Significant Deficiency Repeat
  • 565952 2023-004
    Significant Deficiency Repeat
  • 565953 2023-005
    Significant Deficiency
  • 565954 2023-006
    Significant Deficiency
  • 1142394 2023-004
    Significant Deficiency Repeat
  • 1142395 2023-005
    Significant Deficiency
  • 1142396 2023-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $3.12M
14.872 Public Housing Capital Fund $500,196
14.850 Public Housing Operating Fund $396,952
14.879 Mainstream Vouchers $279,119