Finding Text
2025-003 Eligibility Federal Program U.S. Department of Housing and Urban Development AL #14.871 & 14.879 Grant Award No. ND031-Housing Choice Vouchers & ND031-Mainstream Vouchers Grant Award Year 2025 Questioned Costs None. Criteria Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516). Additionally, as a condition of admission or continued occupancy, the Authority must require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Condition During our testing, we noted several instances where required documentation for tenant files was missing. We noted the following during our testing selection of 40 files: 1) five instances in which a signed lease agreement was not maintained in the tenant file; 2) two files did not contain a signed HAP agreement; and 3) one file did not contain income verification documentation. Context We selected 40 tenants to sample out of 370 total for the year. Effect Tenants may not be provided the proper housing assistance in accordance with their income and eligibility factors. Cause Lack of controls and oversight during the year. Repeat Finding Not a repeat finding. Recommendation We recommend that the Authority implement and use a standardized checklist to ensure that all tenant files contain the required documentation. Views of Responsible Officials The Authority recognizes the deficiency and plans to implement the auditor’s recommendations.