Finding Text
Finding 2024-001 - Housing Assistance Program Discrepancies (repeated from 12/31/2023, 12/31/2022, and 12/31/2021) Subject: Section 8 Housing Choice Voucher Program – Tenant Eligibility and Reexaminations Federal Agency: Department of Housing and Urban Development Federal Program: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Number and Year (or Other Identifying Number): CY 2024 Pass-Through Entity: Not applicable Compliance Requirement: Eligibility Audit Finding: Significant Deficiency Condition and Context: During audit fieldwork, 10 tenant files were reviewed for compliance with Program eligibility and reexamination requirements. It was noted that the Authority does not perform a second party review on annual rent certifications resulting in miscalculated of tenant rent and housing assistance payments for 3 program participants. Rent miscalculations were due to miscalculations of wages or income, incorrect utility allowances, and incorrect income deductions. Criteria: 24 CFR section 982.516 states in part “Except as provided in paragraph (a)(3) of this section, the PHA must obtain and document in the tenant file third-party verification of the following factors, or must document in the tenant file why third-party verification was not available: (i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income.” Cause: Failure to execute internal controls over the federal Eligibility compliance requirement. Effect: Non-compliance with the federal Eligibility requirement. Tenant rents may be miscalculated leading to incorrect housing assistance payments. Other notifications and documentations may be missing for program eligibility. Questioned Cost: Known and projected misstatement: $10,061 Recommendation: We recommend the Authority implement and execute strengthened controls over the federal Eligibility compliance requirement to include the performance of annual reexaminations and documentation maintenance; the above discrepancies need to be addressed, and all tenant files should be reviewed for compliance.