Finding 1169813 (2025-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-01-20

AI Summary

  • Core Issue: One tenant file out of 25 tested had an income miscalculation due to oversight, affecting rent and assistance payments.
  • Impacted Requirements: The Housing Authority failed to properly verify and document all income sources, specifically child support, as required by the Section 8 program.
  • Recommended Follow-Up: Provide targeted training for staff on accurately identifying and reporting non-wage income to prevent future errors.

Finding Text

Assistance Listing Number/Federal Program/Granting Agency: ALN 14.871/14.879 Section 8 Housing Choice Voucher/Mainstream Vouchers Programs (Housing Voucher Cluster) Criteria: Section 8 Housing Choice Voucher Program requires the Authority to obtain and document in the file third-party verification of assets, income, expenses and other factors that affect the determination of adjusted income as a condition of admission or continued occupancy. Statement of Condition: During our test of compliance over the HCV program, which has a population of over 250 tenant files, we noted 1 exception out of 25 tenant files tested. A third-party of verification documented annual child support income $7,696 annually. However, only $3,207 was included in the income calculation on Form 50058. Questioned Costs: below $25,000. Cause: The omission was due to oversight by the Housing Authority as well as a lack of training and understanding related to properly calculating and reporting income. Effect or Possible Effect: The error resulted in tenant portion of rent and Housing Assistance Payments to be miscalculated. Perspective: One instance of noncompliance was identified within a sample of 25 HAP vouchers totaling $29,006 from a universe of over 250 applicable vouchers, which is a statically valid sample. This indicates a potentially systemic issue within the income verification process, not just an isolated error. Repeat Finding: Not a repeat finding. Recommendation: We recommend the Housing Authority provide targeted refresher training to staff and reviewers specifically on identifying and properly recording non-wage income sources (such as child support) to ensure these amounts are consistently included in the income calculation. Views of Responsible Officials: Agree.

Corrective Action Plan

Response to Finding 2025-001 Federal Award Agency: Department of Housing and Urban Development Name of Contact Person: Marat Saks, Chief Financial Officer Views of Responsible Officials: The Housing Authority concurs with the audit recommendation. Corrective Action: To address this issue, management will implement targeted refresher training for eligibility staff and supervisory reviewers focused specifically on identifying, verifying, and properly recording non-wage income sources, including but not limited to child support. The training will reinforce applicable HUD requirements, documentation standards, and quality control review procedures to ensure all non-wage income is consistently included in income calculations. Updated guidance materials and examples will also be provided to staff to support accurate application. Date of Planned Corrective Action: Immediately following being notified of this finding.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1169814 2025-002
    Material Weakness Repeat
  • 1169815 2025-003
    Material Weakness Repeat
  • 1169816 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $1.56M
10.405 FARM LABOR HOUSING LOANS AND GRANTS $1.38M
14.879 MAINSTREAM VOUCHERS $907,375
10.427 RURAL RENTAL ASSISTANCE PAYMENTS $323,831
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $221,314