Finding Text
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 – Significant Deficiency
Grant Award No.
ND014-Housing Choice Voucher
Federal Award Year
2024
Criteria
The Commission must calculate the tenant’s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F. The Commission must also reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification (24 CFR section 982.516).
Condition
During our review of tenant files, we noted one instance in which a tenant did not have family income and composition reexamined every 12 months through third party verification. We also noted three instances where tenant’s HAP payments were calculated incorrectly. These incorrect calculations were due to utility allowance calculated incorrectly, incorrect verified income amounts used, and outdated verified income amounts used.
Questioned Costs
None
Context
We reviewed a sample of 40 tenant files out of a total of 2,155 for eligibility requirements.
Effect
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
2023-002.
Recommendation
We recommend there be a second party review of the file to ensure all necessary procedures have been performed and appropriate documents are included. The review would also ensure that procedures are being performed correctly and calculations are accurate.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.