Finding Text
2024-001 Documentation Retention – Tenant File (Compliance) Federal Program: Housing Voucher Cluster; CFDA #14.871 Federal Agency: U.S. Department of Housing and Urban Development Award Period: 2024 Information on universe and population size The universe consisted of all Housing Choice Voucher (HCV) files for tenants certified and re-certified by the Authority for the fiscal year. The total population was 182. Sample size information A non‑statistical sample of 19 tenant files were selected for testing. One error was identified. Identification as a repeat finding This is not a repeat finding. Criteria HUD Housing Choice Voucher Program guidance (HUD Handbook 7420.7, Chapter 5) requires PHAs to retain complete tenant files, including form HUD‑50058, executed leases, income verification, rent determinations and related support, for a minimum of three years after final action. Statement of condition During our review of 19 tenant files, one file had missing required documents. The required documents that were not included consisted of the executed lease, rent determinations, and inspection documentation. Although alternate documents were provided during audit fieldwork to confirm the tenant’s eligibility, the required original supporting documentation was unavailable. Cause Management inadvertently shredded the information from the file upon the exit of the tenant from the program in April, 2025. Effect Absent proper documentation, the Authority cannot fully demonstrate tenant eligibility, increasing the risk of ineligible assistance payments and regulatory noncompliance. Because the issue was isolated to a single tenant file, the likelihood of material misstatement or widespread noncompliance is remote; however, it represents a significant deficiency. Auditor non-compliance code R – Section 8 Program Administration Questioned costs None Views of responsible officials Management concurs with the finding and is in the process of implementing an electronic document‑management system with automated backup and periodic supervisory reviews to prevent future occurrences. Context This was an isolated instance of noncompliance, affecting 1 of 19 tenant files tested. No systemic issues were noted in the other files reviewed. Recommendation We recommend that the Authority design and implement a record‑retention policy and require supervisory review prior to any file purging to ensure all required documentation is retained.Finding resolution status Unresolved Information on universe and population size The universe consisted of all Housing Choice Voucher (HCV) files for tenants certified and re-certified by the Authority for the fiscal year. The total population was 182. Sample size information A non‑statistical sample of 19 tenant files were selected for testing. One error was identified. Identification as a repeat finding This is not a repeat finding. Criteria HUD Housing Choice Voucher Program guidance (HUD Handbook 7420.7, Chapter 5) requires PHAs to retain complete tenant files, including form HUD‑50058, executed leases, income verification, rent determinations and related support, for a minimum of three years after final action. Statement of condition During our review of 19 tenant files, one file had missing required documents. The required documents that were not included consisted of the executed lease, rent determinations, and inspection documentation. Although alternate documents were provided during audit fieldwork to confirm the tenant’s eligibility, the required original supporting documentation was unavailable. Cause Management inadvertently shredded the information from the file upon the exit of the tenant from the program in April, 2025. Effect Absent proper documentation, the Authority cannot fully demonstrate tenant eligibility, increasing the risk of ineligible assistance payments and regulatory noncompliance. Because the issue was isolated to a single tenant file, the likelihood of material misstatement or widespread noncompliance is remote; however, it represents a significant deficiency. Auditor non-compliance code R – Section 8 Program Administration Questioned costs None Views of responsible officials Management concurs with the finding and is in the process of implementing an electronic document‑management system with automated backup and periodic supervisory reviews to prevent future occurrences. Context This was an isolated instance of noncompliance, affecting 1 of 19 tenant files tested. No systemic issues were noted in the other files reviewed. Recommendation We recommend that the Authority design and implement a record‑retention policy and require supervisory review prior to any file purging to ensure all required documentation is retained.