Finding 1151453 (2024-001)

Finding 2024-001 – Housing Choice Voucher Tenant Files – Eligibility – Rent Calculations Noncompliance & Significant Deficiency Section 8 Housing Choice Voucher Cluster – ALN 14.871 Condition & Cause: Our review of twenty-five (25) Housing Choice Voucher tenant files identified noncompliance in seven files examined. We noted the following discrepancies in our review: • Two (2) Instances of income verifications • Four (4) instances of a late annual reexamination • One (1) instance of an annual inspection not being done for a resident since 2020 The income discrepancies stemmed from incorrect manual calculation errors in addition to a missing student eligibility exemption. The remaining errors are related to the existing internal control structure being ineffective at identifying outstanding inspections or late annual reexaminations. Criteria: The Code of Federal Regulations and the Authority’s Administrative Plan require accurate income calculations for determining Housing Assistance Payment (HAP) subsidies. Correct income verification and calculation are essential for compliance with HUD guidelines and ensuring proper subsidy amounts. Effect: Inadequate verification of income and a failure to comply with housing standards can lead to inaccuracies in financial statements, incorrect HAP subsidy calculations, and noncompliance with Federal Housing Choice Voucher program requirements. Recommendation: We recommend that the Authority establish a systematic review process for income calculations to ensure accuracy. This process should incorporate comprehensive staff training in correct calculation methods and include regular quality control checks to promptly identify and correct errors. The Authority should also be able to identify upcoming annual reexaminations and annual inspections and treat them accordingly per their approved Administrative Plan. Questioned Costs: N/A Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.