Finding Text
The monetary impact needs further investigation to determine the amount for the period of non-compliance. As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516) During the audit, it was noted that in four (4) instances, a family's income was not being properly recalculated according to HUD standards and updated on the 50058. This finding represents a potential weakness in internal controls within the Public Housing Program, as it was identified in four (4) files tested out of a sample of forty (40) out of a population of 2,613. This represents a 10% error rate. Internal controls were not in place to ensure that the income recalculations were being properly done and maintained. Ineligible individuals or families may be receiving rental assistance and /or tenant portion of rent paid is being incorrectly calculated based on incorrect family incomes. "Management should implement internal control procedures to ensure that all income from family members are obtained during admission and re-examination. " Management agrees with the finding, see Management's Corrective Action Plan.