Finding Text
2023-004 Eligibility – Tenant Files Section 8 Housing Voucher Cluster (Section 8): Section 8 Housing Choice Vouchers Program – CFDA Number 14.871 Mainstream Vouchers – CFDA Number 14.879 Significant Deficiency in Internal Control and Other Matter to be Reported Under the Uniform Guidance This is a repeat finding of 2022-001, reported as a Material Weakness and Material Noncompliance from June 30, 2022 (initially occurred as Finding 2017-001, Material Weakness and Material Noncompliance) Condition: Out of a total tenant population of approximately 1452 vouchers, 25 files were selected for testing. Exceptions were noted as follows: • 3 tenant files where the wrong utility allowance was used, which caused a miscalculation in the tenants’ utility allowance rate but had no effect on the HAP rent. • 3 tenant files where the wrong utility allowance was used, which caused a miscalculation in the tenants’ utility allowance rate. Correcting these errors would cause the HAP rent to increase by $3 and decrease by $41 and $37 for each of the three tenant files. • 1 tenant file had the following issues: o The wrong utility allowance was used, which caused a miscalculation in the tenant’s utility allowance rate. Correcting this error would decrease the HAP rent by $52. o The tenant’s asset income was miscalculated, but the error itself would not have changed the HAP rent. • 1 tenant file had the following issues: o The wrong utility allowance was used, which caused a miscalculation in the tenant’s utility allowance rate. Correcting this error would cause the HAP rent to decrease by $14. o The tenant’s asset income was miscalculated and correcting this error would decrease the HAP rent by $13. • 1 tenant file where the tenant’s other source income was excluded from the tenant’s income on the 50058 form. Criteria: 24 CFR 982.516 requires internal controls to be in place to ensure compliance with HUD’s requirements, including complete and accurate tenant files. In addition, the Authority’s Administrative Plan also requires following proper procedures for determination of HAP and to maintain proper documentation in the tenant files. Questioned Costs: None. Effect: The Authority is not in compliance with all of HUD’s requirements regarding eligibility and tenant recertification, which could result in incorrect total tenant payments for rent and HAP payments to landlords. Cause: Procedures to ensure compliance with HUD’s requirements were not being carefully followed. Auditor’s Recommendation: The Authority should correct the deficiencies noted in the tested files and utilize an ongoing quality control review process on the entire tenant population to ensure proper compliance with the requirements related to tenant eligibility. Ongoing staff training and timely management reviews should be utilized to ensure staff is aware of acceptable procedures. In addition, the Authority should review staffing levels, skill sets, and case load. Views of Responsible Officials of the Auditee: The Authority agrees with the finding and has taken corrective action. See the “Action Taken” on the Corrective Action Plan.