Finding 1181979 (2025-001)

Material Weakness Repeat Finding
Requirement
LN
Questioned Costs
-
Year
2025
Accepted
2026-03-23

AI Summary

  • Core Issue: The Public Housing Authority (PHA) incorrectly calculated income for 4.8% of tenant files, leading to an overpayment of $182 from Section 8 funding.
  • Impacted Requirements: Compliance with 24 CFR sections 908 and 982.505(b) regarding accurate reporting and calculation of housing assistance payments.
  • Recommended Follow-Up: The Executive Director and Housing Choice Voucher staff should review and correct income calculations and ensure proper documentation is maintained for all tenant files.

Finding Text

Finding Number: 2025-001 Assistance Listing Number and Title: AL #14.871 and #14.879, Housing Choice Voucher Cluster Federal Award Identification Number / Year: 2025 Federal Agency: U.S. Department of Housing and Urban Development Compliance Requirement: Section L -Reporting, and Section N – Housing Assistance Payments Pass-Through Entity: N/A Repeat Finding from Prior Audit? No Significant Deficiency and Noncompliance 24 CFR section 908 states the Public Housing Authority (PHA) is required to submit HUD-50058 form electronically to HUD. The HUD-50058 form is required to be submitted each time the Public Housing Authority (PHA) completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. 24 CFR section 982.505(b) states the Public Housing Authority (PHA) shall pay a monthly housing assistance payment on behalf of the family that is equal to the lower of: (1) The payment standard for the family minus the total tenant payment; or (2) The gross rent minus the total tenant payment. Due to an error in the income calculation used, the Authority incorrectly calculated the amount on the HUD-50058 for 4.8% of the tenant files tested (1 out of 21) for the Housing Choice Voucher program. The failure to properly calculate income resulted in an incorrect amount paid from the Section 8 funding totaling a projected $182. The Executive Director and Housing Choice Voucher employees should ensure Housing Assistance Payments are calculated in accordance with the HUD requirements and all tenant files maintain the appropriate documentation to meet the requirements of housing assistance payments reporting.

Corrective Action Plan

Finding Number: 2025-001 Planned Corrective Action: Being a small PHA, only 21 of our files were tested. One of those files had an error in it making the error rate 4.76%. The discrepancy was corrected with Tenant after being communicated to Occupancy Specialist. After contacting the software provider and with their direct assistance a new Form 50058 was generated reflecting the accurate income information. The correction has been completed in the system to ensure compliance and accuracy of reporting. Anticipated Completion Date: February 20, 2026 Responsible Contact Person: Angie Finley, Executive Director

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1181977 2025-001
    Material Weakness Repeat
  • 1181978 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 PUBLIC HOUSING OPERATING FUND $295,225
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $106,956
14.872 PUBLIC HOUSING CAPITAL FUND $76,919
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $71,220
14.879 MAINSTREAM VOUCHERS $49,603