Finding Text
Federal Program Section 8 Housing Voucher Cluster 14.871 & 14.879 – Significant Deficiency Criteria The Authority must obtain and document in the family file third party verification of reported family annual income; the value of assets; expenses related to deductions from annual income; and other factors that affect the determination of adjusted income or income-based rent (24 CFR 982.516) Condition During our testing of 40 tenant files, we noted two files with income calculation errors and an additional file with the incorrect payment standard being used. Questioned Costs Undeterminable Context We reviewed a random sample of forty tenant files out of 291 for a tenant’s HAP amount. Effect The income verified was not appropriately used for determining the tenant’s income. Cause Management oversight and lack of internal controls in using checklists in files. Repeat Finding Not a repeat finding. Recommendation We recommend the Authority implement proper internal controls to ensure the Authority’s compliance, which could include the use of checklists in each file. Views of Responsible Officials The Authority is implementing a checklist and will continue random monthly file audits to be completed and documented by the Executive Director.