Finding Text
Housing Voucher Cluster - Eligibility Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879/14.EHV Federal Award Identification Number and Year: VA003, 2023-2024 Award Period: July 1, 2023 – December 31, 2024 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must do the following: (1) As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). (2) For both family income examinations and reexaminations, 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). (3) Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516). (4) Use the Enterprise Income Verification (EIV) system in its entirety to verify tenant employment and income information during mandatory reexaminations of family composition and income in accordance with 24CFR 5.233; and reduce administrative and subsidy payment errors in accordance with 24 CFR 5.236 and other administrative guidance issued by HUD. (5) Reexamine family income and composition at least once every 12months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification (24CFR section 982.516). Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure compliance over eligibility requirements was met. Context: During our testing of 60 tenants for eligibility requirements, we noted the following: - 6 of 60 tenant files tested did not have a signed Declaration 214 for all members of the household - 12 of 60 tenant files tested did not have proper support for income - 12 of 60 tenant files had improperly calculated rent due to missing and/or incorrect support for income, assets or expenses - 9 of 60 tenant files tested did not have a signed HUD-9886 in place Questioned costs: $45,998. Cause: The Authority has had vacancies and turnover in the staff who perform recertification processes, resulting in these processes being performed by less experienced and trained staff. Effect: The Authority is not in compliance with HUD regulations over eligibility. This could have an impact on HAP calculations. Repeat Finding: Yes, 2023-003. Recommendation: We recommend the Authority review their recertification process to ensure that all Eligibility requirements are met and documented. Views of responsible officials: There is no disagreement with the audit finding.