Finding Text
Calculating Income / Retaining Supporting Documentation for Family Income Examinations Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matter Criteria or specific requirement: Per 24 CFR sections 5.230, 5.609, and 982.516., the tenant and other family members are required to provide necessary information, documentation, and releases for the Organization to verify income eligibility. Condition: During our testing, we noted that one tenant file did not have income documentation for a portion of income that was included in the eligibility calculation and HAP was incorrectly calculated. Questioned costs: None Context: From a sample of 60 program participant files selected for testing, one tenant file did not have income documentation for a portion of income that was included in the eligibility calculation. An incorrect amount was included as income for the tenant and HAP was underpaid. Cause: The Housing Specialist did not calculate the income correctly for one tenant. Effect: File did not contain required information per 24 CFR sections 5.230, 5.609, and 982.516. Additional HAP payments were made in 2025 to correct the underpaid HAP. Repeat finding: No Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines. Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.