Finding Text
Calculating Expenses 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: The Organization incorrectly calculated expenses as part of family income examination or reexamination for one tenant based on the requirements of 24 CFR Section 982.516. Condition: During our testing, we noted that one tenant file was missing an expense deduction from its eligibility calculation. Questioned costs: None Context: During our testing, we noted that one tenant file was missing an expense deduction from its eligibility calculation. Cause: The Housing Specialist made an error in calculating the expenses for one tenant. Effect: One program participant received an incorrect amount of HAP payments. Additional HAP payments were made in 2025 to correct the underpaid HAP. Repeat finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure expenses are appropriately calculated in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated. Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.