FAC Explorer

Finding 1162848 (2025-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2025-11-24
Audit: 372511
Organization: Housing Authority of Savannah (GA)
Auditor: RECTOR REEDER & LOFTON PC

AI Summary

  • Core Issue: 28 out of 150 tenant files showed noncompliance, with errors in income calculations and missing documentation.
  • Impacted Requirements: Errors violate HUD regulations on income verification and annual reexaminations, risking inaccurate subsidy payments.
  • Recommended Follow-Up: Implement a systematic review process for income calculations, enhance staff training, and ensure compliance with the Administrative Plan.

Finding Text

Finding 2025-001 – Housing Choice Voucher Tenant Files – Eligibility – Rent Calculations Noncompliance & Significant Deficiency Section 8 Housing Choice Voucher Cluster – ALN 14.871 and 14.EHV Condition & Cause: Our review of 150 Housing Choice Voucher tenant files identified noncompliance in 28 files (18.7%). Of these, 8 files (5.3%) contained errors related to income miscalculations, improper deductions, or missing income verification. Both overall and income-related error rates increased compared to the prior year. Specific findings include: 1 file missing documentation for the annual reexamination, including income verification, continued occupancy application, and release of information authorization 7 files with incorrect annual income calculations 4 files with unverified or improper income deductions 2 files missing the EIV report for reexaminations 18 files missing a quarterly EIV review for zero-income households These errors were primarily due to manual calculation mistakes coupled with insufficient review procedures. Contributing factors also include high turnover in key leadership positions and an ongoing transition to electronic tenant file systems. Criteria: HUD regulations (24 CFR § 5 and § 982) require accurate income verification, proper rent calculations, use of the EIV system, and annual reexaminations. The Agency’s Administrative Plan additionally requires quarterly income reviews for households reporting zero income. All supporting documentation must be maintained in tenant files. Effect: Incorrect income calculations and missing documentation can lead to inaccurate subsidy payments, tenant over- or underpayments, noncompliance with HUD requirements, and potential repayment obligations. These issues also increase audit risk and reduce program integrity. Recommendation: We recommend that the Authority establish a systematic review process for income calculations to ensure accuracy. This process should incorporate comprehensive staff training in correct calculation methods and include regular quality control checks to promptly identify and correct errors. Furthermore, the Authority should ensure stricter adherence to its Administrative Plan. Questioned Costs: None Repeat Finding: Yes Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.

Corrective Action Plan

Finding 2025-001 – Housing Choice Voucher Tenant Files – Eligibility – Rent Calculations Noncompliance & Significant Deficiency Section 8 Housing Choice Voucher Cluster – ALN 14.871 and 14.EHV Corrective Action Plan: To address the rent calculations and documentation errors identified, we have implemented oversight and training measures. Beginning October 1, 2025, all Housing Choice Voucher case managers will participate in monthly peer-to-peer quality assurance reviews. In these reviews, each staff member will review five files, consisting of a mix of annual re-examinations, interim re-examinations, unit transfers, and voucher issuances. In addition, the Lead Case Manager is responsible for conducting random monthly file reviews, and the Interim Director performs supervisor-level monthly reviews. The results of these reviews are documented to ensure transparency, accountability, and timely corrective action. Targeted staff training began in July 2025 to reinforce proper income calculations methods, verification standards, and documentation requirements. This training will be completed by December 31, 2025, with refresher sessions scheduled every quarter. As part of this effort, quarterly “Deep Dive” Workshops will be conducted, dedicating each session to a focused topic on income calculations. Additionally, scenario-based and case-study files will be incorporated into staff meetings and training courses to provide practical experience with complex situations. With the revision of the Administrative Plan, quarterly EIV reviews for zero-income households are no longer required; however, case managers are required to ensure that EIV reports are generated and documented at each annual or interim reexamination. Oversight of these corrective actions is assigned to the Lead Case Manager and Interim Director, who will present summary reports during monthly staff meetings to track progress and reinforce compliance. Person Responsible: Renay Malone, Interim Director of Assisted Housing Programs Anticipated Completion Date: Peer to Peer QA and Supervisor File Review will begin October 1, 2025, and will continue monthly. Staff training completion is scheduled for December 31, 2025, with quarterly refresher training ongoing thereafter. Currently, nine (9) case managers have obtained the Housing Choice Voucher Specialist certification, and five (5) are in progress. All case managers will be certified by December 31, 2025.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1162846 2025-002
    Material Weakness Repeat
  • 1162847 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.872 PUBLIC HOUSING CAPITAL FUND $7.29M
14.850 PUBLIC HOUSING OPERATING FUND $3.78M
14.267 CONTINUUM OF CARE PROGRAM $1.61M
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $736,786
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $269,841
14.249 SECTION 8 MODERATE REHABILITATION SINGLE ROOM OCCUPANCY $89,919