Finding 1214414 (2025-004)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-05-11

AI Summary

  • Core Issue: The Commission's process for calculating tenant rent payments is flawed, leading to incorrect amounts in tenant files.
  • Impacted Requirements: Compliance with HUD guidelines for tenant rent calculations and documentation is not being met, with errors found in 7 out of 60 files.
  • Recommended Follow-Up: Implement a second-person review for tenant files to catch calculation errors, especially due to recent staff turnover.

Finding Text

2025-004 Section 8 Housing Choice Voucher Cluster Federal Financial Assistance Listing 14.879 Mainstream Voucher Program Federal Financial Assistance Listing 14.871 Section 8 Housing Choice Voucher Program Eligibility Significant Deficiency in Internal Control over Compliance Criteria: As required by HUD guidelines, the Commission is required to calculate the tenant’s rent payment using documentation from third-party verification used to calculate payment of assistance and require specific information be maintained in tenant files. Condition: The Commission’s control in place for review of the tenant’s rent payment used for tenant files on annual reviews was not operating effectively. In seven of the 60 tenant files tested, the tenant’s payment amounts were calculated incorrectly. Five of the seven files with errors would have been de minimis errors which the compliance supplement notes as an error of less than $30 per month. Also, two tenants’ social security number documentation in the tenant files did not match Form 50058. Cause: The Commission experienced significant turnover in 2024 and 2025 which resulted in errors being made in the calculations. Effect: The reporting of an incorrect tenant rent payment could result in incorrect assistance being awarded. Incorrect social security numbers could result in the tenant receiving assistance under multiple locations. Questioned Costs: None Context/Sampling: A nonstatistical sample of 60 participants out of 612 participants were selected for eligibility testing. Repeat Finding from Prior Year(s): Yes, Finding 2024-004. Recommendation: With the turnover in staffing, we realize the potential for errors to occur. We recommend additional review being completed on files by a second person to ensure calculations are completed correctly. Views of Responsible Officials: Management agrees with finding.

Corrective Action Plan

Finding 2025-004 Federal Agency Name – Department of Housing and Urban Development Assistance Listing Number – 14.871 & 14.879 Program Name – Housing Voucher Cluster Finding Summary: The Commission’s control in place for review of the tenant’s rent payment used for tenant files on annual reviews was not operating effectively. In seven of the 60 tenant files tested, the tenant’s payment amounts were calculated incorrectly. Five of the seven files with errors would have been de minimis errors which the compliance supplement notes as an error of less than $30 per month. Also, two tenants’ social security number documentation in the tenant files did not match Form 50058. Responsible Individuals: Brett Bill, Executive Director Corrective Action Plan: The Commission has had recent turnover in the Section 8 Program. Additional training will be provided to new staff to ensure that they are aware of program requirements. Anticipated Completion Date: 5/1/2026

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1214411 2025-003
    Material Weakness Repeat
  • 1214412 2025-003
    Material Weakness Repeat
  • 1214413 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $3.09M
14.872 PUBLIC HOUSING CAPITAL FUND $310,868
14.879 MAINSTREAM VOUCHERS $207,103
14.850 PUBLIC HOUSING OPERATING FUND $159,048
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $67,662