Finding 1155315 (2024-003)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-09-25

AI Summary

  • Core Issue: Errors in income calculations and incorrect payment standards were found in tenant files for the Section 8 Housing Choice Voucher Program.
  • Impacted Requirements: The PHA must verify and document family income and related factors as per federal regulations (24 CFR section 982.516).
  • Recommended Follow-up: Implement stronger internal controls to ensure compliance and prevent repeat findings.

Finding Text

Federal Program – Section 8 Housing Choice Voucher Program AL #14.871 – Eligibility for Individuals Federal Program Section 8 Housing Choice Vouchers AL #14.871 – Material Weakness Criteria The PHA must obtain and document in the family file third party verification of reported family annual income; the value of assets; expenses related to deductions from annual income; and other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). Condition During our testing of nineteen tenant files, we noted that five files had income calculation errors and three additional files which use the incorrect payment standard and Utility allowance for the household. Questioned Costs Undeterminable. Context We reviewed a random sample of nineteen out of 182 tenant files for a tenant’s HAP amount. Effect The income verified was not appropriately used for determining the tenant’s income. Cause The Authority experienced turnover in the Section 8 program. As a result, controls were not in place to ensure proper documentation. Repeat Finding This is a repeat of finding 2023-003. Recommendation We recommend that the Authority implement proper internal controls to ensure the Authority’s compliance with special tests requirements. Views of Responsible Officials We are aware of the issue and have taken subsequent steps to ensure compliance with this requirement.

Corrective Action Plan

1. Correcting Plan CHEDA staff are aware of income eligibility documentation and will implement an internal control process. 2. Explanation of Disagreement with the Audit Finding There is essentially no disagreement with the finding. 3. Official Responsible for Ensuring CAP Karie Kirschbaum – Executive Director 4. Planned Completion Date for CAP Immediately. 5. Plan to Monitor Completion of CAP The Executive Director will monitor completion of the CAP.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1155314 2024-002
    Material Weakness Repeat
  • 1155316 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.01M
14.850 Public Housing Operating Fund $193,771
14.872 Public Housing Capital Fund $99,753