Finding Text
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Choice Voucher Cluster Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: WA001DV0079-83 - 2025 WA001EH014, WA001EH0013, 15-16 - 2025 Award Period: January 1, 2025 through December 31, 2025 Compliance Requirement: Eligibility Type of Finding: • Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: According to Part 4 of the Compliance Supplement 2025 for the Housing Voucher Cluster, “The PHA must do the following: (1) As a condition of admission or continued occupancy, 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). (2) Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification (24 CFR section 982.516).” According to the Authority’s Housing Choice Voucher Program Administrative Plan updated August 25th, 2025, “It is required that all adult applicants and participants sign a Release of Information form. The purpose of this form is to facilitate automated data collection and computer matching from specific sources and provides the family's consent only for the specific purposes listed on the form. HUD.” According to the Authority’s Housing Choice Voucher Program Administrative Plan updated August 25th, 2025, “SHA will begin the annual reexamination process 120 days in advance of its scheduled effective date. Generally, SHA will schedule annual reexamination effective dates to coincide with the family’s anniversary date.” Condition: During testing, we noted the Authority lacked adequate internal controls to ensure documentation was maintained in the tenant file and properly supported the Housing Assistance Payment (HAP) in accordance with federal regulation and Authority policy. Questioned costs: $24,084 Context: During testing, we identified the following eligibility issues in three separate files: • One of forty sampled tenant files did not include a signed Release of Information consent form applicable to the eligible time frame. • Two of forty sampled tenant files did not have the annual reexamination completed. Cause: For reexaminations that were not completed, the Authority implemented an administrative reexamination process to address the backlog. This process relied on prior-year information, rather than conducting an actual reexamination, in order to move forward with current-year reexaminations. The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as its administrative policy. Effect: The Authority may be providing housing assistance to families who are either not eligible for the program or receiving assistance in excess of what is allowed. Repeat Finding: Yes. See prior year finding 2024-004. Recommendation: We recommend the Authority design and implement controls to ensure tenant files include documentation supporting both initial and ongoing eligibility, in accordance with federal regulation and Authority policy. Views of responsible officials: There is no disagreement with the audit finding.