Finding 1218176 (2024-006)

Material Weakness Repeat Finding
Requirement
ELN
Questioned Costs
-
Year
2024
Accepted
2026-06-23

AI Summary

  • Core Issue: The Public Housing Authority (PHA) failed to accurately input data into the HUD-50058 form for 3.3% of tenant files, leading to incorrect reporting.
  • Impacted Requirements: Compliance with 24 CFR § 982.516 and § 908 regarding annual income reexaminations and accurate electronic submissions to HUD.
  • Recommended Follow-Up: Ensure all tenant files have proper documentation for income verification and housing assistance payments; review processes to prevent future inaccuracies.

Finding Text

Finding Number: 2024-006 Assistance Listing Number and Title: AL # 14.871 - Section 8 Housing Choice Vouchers/Housing Voucher Cluster Federal Award Identification Number / Year: 2024 Federal Agency: U.S. Department of Housing and Urban Development Compliance Requirement: Reporting, Eligibility, Special Tests and Provisions Pass-Through Entity: N/A Repeat Finding from Prior Audit? No Noncompliance and Significant Deficiency 24 CFR § 982.516 states the Public Housing Authority (PHA) must conduct a reexamination of family income and composition at least annually. Section 2 states the PHA must obtain and document in the tenant file third-party verification of the following factors, or must document why third-party verification was not available: (i) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income- based rent. 24 CFR § 908 states the Public Housing Authority (PHA) is required to submit HUD-50058 form electronically to HUD 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 § 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. The Authority input data into the HUD-50058 inaccurately for 3.3 percent of the tenant files tested for the Housing Choice Voucher program. This resulted in the data reported on HUD-50058 to be inaccurate and variances in the calculation of the total HAP and the Utility Reimbursement Payment. The Executive Director and Housing Choice Voucher employees should ensure all tenant files maintain the appropriate documentation to meet the requirements of income verification and housing assistance payments reporting.

Corrective Action Plan

Finding Number: 2024-006 Planned Corrective Action: AMHA will require staff to follow all requirements set forth in 24 CFR 982 regarding income documentation such as obtaining third party verification and documenting the file as to why it was not available, related to annual income, assets, expenses, etc. Staff will be instructed to double check calculations before inputting the information into the computer/50058 and to check to make sure calculations are accurate prior to adding the 50058 for submission. AMHA will continue to send staff to the appropriate training courses and AMHA has contracted with Nelrod for online training and will ensure this also includes EIV training courses. AMHA staff will conduct quality control on the files at random. Anticipated Completion Date: 6/11/2026 Responsible Contact Person: Zackary Dye, Executive Director

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1218169 2024-003
    Material Weakness Repeat
  • 1218170 2024-003
    Material Weakness Repeat
  • 1218171 2024-004
    Material Weakness Repeat
  • 1218172 2024-004
    Material Weakness Repeat
  • 1218173 2024-005
    Material Weakness Repeat
  • 1218174 2024-005
    Material Weakness Repeat
  • 1218175 2024-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 PUBLIC HOUSING OPERATING FUND $459,134
14.872 PUBLIC HOUSING CAPITAL FUND $413,660
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $121,339
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $59,732