Finding 1156611 (2024-004)

FINDING # 2024-004 SPECIAL PEROFRMANCE – DEFICIENCY - COMPLIANCE SECTION 8 HOUSING CHOICE VOUCHERS (ALN # 14.871) CONTRACT #: NOT AVAILABLE FEDERAL AGENCY: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (CONTINUED) 1. CRITERIA- Special Reporting - HUD-50058, Family Report (OMB No. 2577-0083) - The PHA is required to submit this form electronically to HUD each time the PHA completes an issuance, admission, annual reexamination, interim reexamination, portability move-in, expiration, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA's jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Key Line items - The following line items contain critical information Line 2a - Type of Action Line 2b - Effective Date of Action Line 3b, 3c – Names Line 3e - Date of Birth Line 3n - Social Security Numbers Line 5a - Unit Address Line 5h, 5i - Unit inspection Dates Line 7i - Total Annual income Lines 2k and 17a - Family's Participation in the Family Self Sufficiency (FSS) Program Line 17k (2) - FSS Account Balance 2. CONDITION/PERSPECTIVE The Authority received funding from the HUD. The Authority is required to submit HUD-50058 each time the PHA completes an issuance, admission, annual reexamination, interim .reexamination, portability move-in, expiration, or other change of unit for a family. Of the sixty (60) case files selected for testing in which 540 pieces of audit evidence (Special reporting forms as noted in the Criteria section above) were requested to be provided: • Eight documents related to HUD-50058 forms were not provided (One missing verification of Names; Three missing verification of Date of Birth; and Four missing Verification of Social Security. These forms are considered critical information for HUD -50058 forms. This documents are required documentation to be maintained in the case files to support HUD-50058 form for Section 8 Housing Choice Voucher Program. Therefore, we were not able to determine if the critical information in HUD-50058 form are supported by supporting documentation. 3. CAUSE The Authority did not ensure that all required critical information for HUD-50058 forms were obtained from the tenants and included in the case files timely. 4. EFFECT The U.S. Department of Housing and Urban Development may consider the Authority non-compliant with the special performance requirements. 5. REPEAT FINDING No 6. RECOMMENDATION We recommend the Authority strengthen its controls over the Section 8 Housing Choice Voucher Program HUD-50058 form to ensure that all supporting documentation for HUD-50058 form are received, reviewed, and maintained to support HUD -50058 form. 7. QUESTIONED COST Cannot be determined. 8. VIEWS OF RESPONSIBLE OFFICIAL There are some missing documentations pertaining to eligibility and admission in files for households admitted prior to 2011. Such documentation, which includes the application, vital documents, lease, and request for tenancy approval, is aged beyond 20 years for some cases and is not retrievable as part of a 2010 backfile conversion. This was noted as a condition in a previous Single Audit. Part III of the Schedule of Findings and Questioned Costs for Federal Awards year ending December 31, 2010, cited the condition as “For two of our selections, the Authority was not able to locate the tenant file containing the required documentation that the authority had obtained to verify income eligibility. Because the tenant file was not available, the Authority was not able to provide all of the documents needed to test eligibility such as tenant applications, third party income verifications, or lease agreements.” NYCHA's response to that audit conveyed our confidence in the business improvement initiatives completed to streamline the document management process. As NYCHA noted in response to the 2010 audit: the backfile conversion process was part of a large-scale, multi-year implementation of a new computer system that went live in 2011, during which over 15 million documents were converted to electronic files. New system improvements included forms tracking using the Intelligent Forms Processing (IFP) scanning technology. The IFP technology associates and saves scanned documents and documents completed by tenants electronically directly to the tenant case files in Siebel. The Siebel Customer Relationship Manager (CRM) System provides process standardization and solutions for document retention needs. In the current audit, there are 30 files that are reflective of our improved document management and retention; NYCHA has continued to make such improvements since 2011 and NYCHA remains committed to making our best efforts to ensure that all eligibility and admission documentation is maintained in the system of record.