Finding Text
2024-001 – Eligibility Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Housing Voucher Cluster FALN: 14.871/14.879 Federal Award Identification Number and Year: MD023, 2024 Award Period: 1/1/2024-12/31/2024 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: For both family income examinations and reexaminations, the PHA must obtain and document in the family file third-party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516) Condition: The Commission did not follow its policies and procedures designed to ensure compliance with eligibility requirements. Questioned costs: $3,936 Context: Testing of 60 HCVP files indicated that 2 files had incorrect income values that were used to calculate the housing assistance payments (HAP). Cause: The commission must verify income annually through third-party verification and perform an accurate calculation. The commission did not complete this correctly. Effect: The Commission is not in compliance with HUD requirements. This could have an impact on HAP calculations. Repeat Finding: Yes, 2023-001 Recommendation: We recommend that the Commission review its procedures for collecting and recording third-party income support and data, and to ensure that HAP calculations are performed accurately. The Commission should ensure that staff involved in collection and recording of income support and data, and in performing related calculations, are properly informed of procedural changes and are provided with sufficient training. Views of responsible officials: There is no disagreement with the audit finding.