Finding Text
Finding 2025-002 – Low Rent Public Housing Tenant Files – Eligibility – Rent Calculations Noncompliance & Significant Deficiency – Low Rent Public Housing – ALN #14.850 Condition & Cause: Our review of forty (40) Low Rent Public Housing tenant files identified noncompliance in five (5) files, representing 12.5% of the sample. This reflects an improvement from the prior year’s noncompliance rate of 25%. All instances of noncompliance were related to the calculation of adjusted annual income. The most frequent error involved using net pay rather than gross pay when annualizing income. The Agency experienced challenges in hiring, training, and retaining qualified staff during the fiscal year. These staffing issues likely contributed to lapses in regulatory compliance and the accuracy of income calculations. All identified errors were associated with staff members who are no longer employed by the Authority. The extrapolated total potential misstatement was determined to be immaterial to the financial statements. Criteria: The Code of Federal Regulations, the Housing Authority’s Admissions and Continued Occupancy Policy (ACOP), and specific HUD guidelines in documenting and maintaining Public Housing tenant files. Effect: Improper calculation can lead to incorrect calculation of rental charges and misstatements in the financial statements. Ongoing noncompliance may also draw scrutiny from regulatory bodies, increasing the risk of financial penalties or loss of funding for the Public Housing program. Recommendation: We recommend that the Agency continue to monitor and enhance its quality control procedures to ensure the accuracy and timeliness of income calculations and reexaminations, to assess the need for further staff training, and to effectively monitor compliance with local and federal regulations regarding the maintenance of tenant files. 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.