Finding Text
2024-003 Housing Choice Voucher Tenant Files: Eligibility
Program: U.S. Department of HUD: Section 8 Housing Choice Vouchers (ALN #14.871)
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
This is a repeat finding of 2023-002 from September 30, 2023 (Originally reported as Material non-compliance and Material Weakness in Internal Control over Compliance under finding 2019-001 from September 30, 2019)
Statement of Condition: Out of a total tenant population of approximately 1,118 vouchers, 25 files were selected for testing, and the following errors were discovered.
• 2 tenant files had the following error:
o The HAP contract in the tenants’ file was not signed by a representative of Ocala Housing Authority.
• 1 tenant file had the following error:
o The tenant's utility allowance was incorrectly calculated using the 2023 utility allowance rates. The 2024 utility allowance rates should have been used. Correcting this error will decrease the Housing Assistance Payment by $4.
• 1 tenant file had the following error:
o The tenant's utility allowance was incorrectly calculated using the 2023 utility allowance rates. The 2024 utility allowance rates should have been used. Correcting this error will increase the Housing Assistance Payment by $23.
• 1 tenant file had the following error:
o The tenant's utility allowance was incorrectly calculated using the 2023 utility allowance rates. The 2024 utility allowance rates should have been used. Correcting this error will increase the Housing Assistance Payment by $7.
• 1 tenant file had the following error:
o The tenant's utility allowance was incorrectly calculated using the 2023 utility allowance rates for a 1-bedroom unit. The 2024 utility allowance rates for a 2-bedroom unit should have been used. Correcting this error will increase the Housing Assistance Payment by $20.
Criteria: Per 24 CFR 982.516, internal controls are required to ensure full compliance with HUD requirements and the integrity of tenant files. Furthermore, the Authority’s Administrative Plan mandates adherence to established procedures for the accurate determination of tenant income and utility allowance, with comprehensive documentation maintained within tenant records.
Questioned Costs: None.
Effect: The Authority is not in compliance with all of the HUD requirements regarding eligibility and tenant recertification, which could result in incorrect total tenant payments for rent and HAP payments to landlords.
Cause: Procedures to ensure compliance with all of the HUD requirements were not being carefully followed. In addition, the Authority experienced some turnover in the HCV department which contributed to these errors.
Recommendation: The Authority should correct the deficiencies noted in the tested files and utilize an ongoing quality control review process on the entire tenant population to ensure proper compliance with the requirements related to tenant eligibility. Ongoing staff training and timely management reviews should be utilized to ensure staff is aware of acceptable procedures. In addition, the Authority should review staffing levels, skill sets and case load.
Views of Responsible Officials of the Auditee: The Authority concurs with this finding. The Authority has an established review, oversight and training process for all of its staff and will continue to improve its review, oversight, and training process to ensure proper procedures are being followed.