Finding 1148155 (2024-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-07-22

AI Summary

  • Core Issue: Tenant files are missing essential documentation, including proof of citizenship and social security numbers, leading to potential ineligibility for HAP funding.
  • Impacted Requirements: The PHA must verify income eligibility and calculate rent payments according to federal regulations (24 CFR sections 5.230, 5.609, and 982.516).
  • Recommended Follow-Up: The Authority should enhance procedures for verifying eligibility and ensure thorough reviews of tenant files to maintain compliance and accuracy in HAP payments.

Finding Text

Federal Program U.S. Department of Housing and Urban Development AL #14.871 – Significant Deficiency. Grant Award No. MN177-Housing Choice Voucher Federal Award Year 2024 Criteria As a condition of admission or continued occupancy, 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). The PHA must also determine income eligibility and calculate the tenant’s rent payment using the documentation from thirdparty 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). Condition During our review of tenant files, one file did not maintain proof of citizenship or eligible immigrant status. The same tenant file was also missing documentation of a social security number. We also noted during our review of tenant files, one file did not correctly calculate the tenant’s rent payment. Questioned Costs None. Context We reviewed a sample of 11 of the Authority’s 108 tenant files for eligibility requirements. Effect Tenants may receive HAP funding without meeting eligibility requirements and HAP payments may be paid in the incorrect amounts. Cause Lack of controls and oversight during the year. Repeat Finding Not a repeat finding. Recommendation We recommend the Authority review their procedures of determining eligibility to ensure all requirements are obtained and maintained and that a review of the files is taking place to ensure proper HAP payments. Views of Responsible Officials The Authority recognizes the deficiency and plans to implement auditor’s recommendation.

Categories

HUD Housing Programs Eligibility Significant Deficiency

Other Findings in this Audit

  • 571713 2024-001
    Significant Deficiency
  • 571714 2024-002
    Significant Deficiency
  • 571715 2024-003
    Significant Deficiency
  • 1148156 2024-002
    Significant Deficiency
  • 1148157 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $748,363
14.850 Public Housing Operating Fund $45,308
14.872 Public Housing Capital Fund $40,845