Finding Text
2025-004 - Documentation of Controls U.S. Department of Housing and Urban Development 14.871 - Housing Choice Voucher Cluster/Section 8 Housing Choice Vouchers E. Eligibility, L. Reporting, and N. Special Tests and Provisions - Significant Deficiency and Compliance Finding Condition: During review of the Housing Choice Voucher ("HCV") program, RBT noted that the Authority was not appropriately maintaining documentation of the controls over Eligibility, Reporting, Reasonable Rent, Utility Allowance, and HQS Inspections. RBT also noted that the Authority was not reporting failed inspections to landlords timely and in certain cases, payments to landlords were not stopped in accordance with the Authority's policy. Further, RBT noted that the Authority did not obtain the proper signatures on the form HUD-9886. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts (such as 24 CFR Section 982), and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority does not have a central uniform location to document the controls in place over Eligibility, Reporting, Reasonable Rent, Utility Allowance, and HQS Inspections. Effect: Potential loss of funding due to noncompliance or additional noncompliance if a control is missed. Questioned Costs: None identified. Perspective: Out of the sixty tenant files selected for testing, three did not have the proper signatures on the form HUD-9886, and five lacked proper reporting of failed inspections to landlords. None of the sixty tenants files selected for testing contained documentation of the internal controls performed. Repeat Finding: This is a repeat of finding 2024-003. Recommendation: RBT recommends that the Authority maintain the checklist that the Tenant Housing Representatives use during the recertification process to ensure all compliance requirements are met. The checklist should be signed or initialed by the representative and maintained in the tenant's file. This checklist will serve as documentation that all compliance requirements were verified for the tenant. Auditee's Response: See corrective action plan.