Finding Text
Finding 2025-001 U.S. Department of Housing and Urban Development (HUD) Housing Voucher Cluster/Section 8 Housing Choice Voucher – ALN 14.871 Eligibility Condition: During our review of HUD-50058, Family Report (HUD-50058) forms prepared by Mercer County Housing Authority (Authority), we noted the Authority did not follow their internal controls in place with regards to the annual re-examination process. We noted two instances where the procedures for review of tenant rent calculations did not identify an error based on the income and deduction support. Criteria: The Authority’s internal controls require a review of tenant rent calculations based on the income and deduction support provided. Cause: The Authority’s internal controls did not ensure that tenant rent was properly calculated using the income and deduction support provided to be used for preparation on the HUD-50058. Effect: The amounts used by the Authority for the rent calculation for two tenants tested was not supported by the income and deduction support available for audit resulting in the tenant and HUD being under/overcharged. Questioned Costs: None that meet the single audit threshold. Repeat Finding: This is not a repeat of a prior year finding. Recommendations: We recommend that the Authority follow their internal controls in place to ensure that the review of tenant rent calculations identify any errors in the calculation based on the income and deduction support provided. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding, see separate corrective action plan.