FAC Explorer

Finding 1208197 (2025-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-04-20
Audit: 399078
Organization: City of East Peoria, Illinois (IL)
Auditor: RECTOR REEDER & LOFTON PC

AI Summary

  • Core Issue: Three out of twelve tenant files in the Housing Choice Voucher program lacked proper income verification, relying only on tenant self-certification.
  • Impacted Requirements: Federal regulations and the Agency’s Administrative Plan mandate third-party income verification and proper documentation.
  • Recommended Follow-Up: Conduct a thorough review of all HCV tenant files for compliance and implement monitoring controls to ensure adherence to income verification standards.

Finding Text

Finding 2025-001 – Housing Choice Voucher Tenant Files – Eligibility – Noncompliance & Significant Deficiency – Housing Choice Voucher Program – ALN 14.871 Condition: We reviewed twelve (12) tenant files within the Housing Choice Voucher (HCV) program and identified three (3) files (25 percent of the sample) that did not comply with income verification requirements. In these cases, the Agency relied solely on tenant self-certification without documented attempts to obtain required third-party verification. Criteria: Federal regulations, the Agency’s Administrative Plan, and HUD guidance require that income be verified using third-party documentation when available and that verification efforts be properly documented in tenant files. Effect: Inadequate income verification increases the risk of incorrect subsidy determinations and may result in noncompliance with federal program requirements. Recommendation: We recommend that the Agency perform a comprehensive review of existing HCV tenant files to identify any additional instances of noncompliance. The Agency should also establish and implement monitoring controls to ensure income verification requirements are consistently followed and that internal procedures are aligned with federal and local standards. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes View of Responsible Officials: The PHA agrees with the results of the audit and recommendations.

Corrective Action Plan

Finding 2025-001 - Housing Choice Voucher Tenant Files, Eligibility - Noncompliance & Significant Deficiency - Housing Choice Voucher Program - ALN 14.871 Corrective Action Plan: The audit identified that in 3 out of 12 Housing Choice Voucher (HCV) tenant files (25% of the sample), income verification requirements were not met. The files contained tenant self-certification only, with no documented attempts to obtain third-party verification as required by HUD regulations and the Agency's Administrative Plan. Corrective Action Steps: 1. Immediate File Review & Correction: Conduct a full review of all active HCV tenant files to identify any additional instances of missing third-party verification. For any file where verification is missing, take corrective action (e.g., obtain required third-party documentation or document attempts if unavailable). Ensure the verification tracking log is being utilized for all verification attempts going forward. 2. Implementation of Stronger Monitoring Controls: Develop a standardized Income Verification Checklist. Executive Director will increase monthly quality-control checks. 3. Staff Training: Provide mandatory training on HUD verification requirements, documentation standards and correct procedures for obtaining and recording third-party verification. 4. Policy Updates: Ensure SOP outlines required verification steps and documentation standards. Anticipated Completion Date: June 30, 2026 Person Responsible: LaToya Brown, Executive Director

Categories

HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $1.76M