Finding Text
Finding 2025-001 – Moving to Work Demonstration Tenant Files – Eligibility – Internal Control over Tenant Files – Noncompliance & Significant Deficiency – Moving to Work Demonstration - ALN 14.881 Condition & Cause: We reviewed a sample of sixty-five (65) tenant files, which included both Public Housing and Housing Choice Voucher participants. Of these, nine (9) files were found to be noncompliant, representing approximately 13% of the sample. Some files had multiple compliance issues. It should be noted that all errors were isolated to the Public Housing program. Specifically, we identified: • Seven (7) files where the annual reexamination was completed or made effective at least two months past the due date. • Three (3) files lack proper verification of income or deductions. • Two (2) files lacked the required Enterprise Income Verification (EIV) documentation. • One (1) file contained a miscalculation of annual income. • One (1) file lacked identification and citizenship documents. The cause of this noncompliance, as discussed with management, is attributed to staff vacancies and challenges in hiring and retaining qualified personnel as well as an ongoing software conversion. Criteria: The Code of Federal Regulations, the Housing Authority’s Administrative Plan, Admissions & Continued Occupancy Policy, and MTW Plan, and specific HUD guidelines in documenting and maintaining Public Housing and Housing Choice Voucher tenant files. Effect: Deficiencies in tenant files can result in lost rental income due to late re-examinations, along with potential overpayments or underpayments by tenants stemming from inaccurate or unsupported rent determinations. Ongoing non-compliance may also draw scrutiny from regulatory bodies, increasing the risk of financial penalties or loss of funding for the MTW programs. Recommendation: We recommend that the Agency strengthen their quality control review and oversight procedures to ensure timely and accurate completion of all required tenant file documentation and reexaminations. Furthermore, the Agency should take measures to address staffing shortages. 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.