Finding Text
Eligibility - E Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Housing Voucher Cluster FALN: 14.871/14.879 Federal Award Identification Number and Year: MD023, 2025 Award Period: 1/1/2025-12/31/2025 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) 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 section 982.516). 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). Use the Enterprise Income Verification (EIV) system in its entirety to verify tenant employment and income information during mandatory reexaminations of family composition and income in accordance with 24 CFR 5.233; and reduce administrative and subsidy payment errors in accordance with 24 CFR 5.236 and other administrative guidance issued by HUD. Condition: The Commission did not follow its Administrative Plan designed to ensure compliance with eligibility requirements. Questioned costs: $1,128; this was calculated by determining the HAP payment that was paid during the time the Commission lacked support for income. Context: Out of 60 tenant files reviewed, the Commission did not obtain the required EIV report for one (1) tenant’s recertification. Cause: The Commission must verify income annually through obtaining an EIV report for each tenant’s annual recertification. The Commission did not run this in one instance. Effect: The Commission is not in compliance with HUD requirements. This could have an impact on HAP calculations. Repeat Finding: Yes, 2024-001 Recommendation: We recommend that the Commission review its process for collecting third party income support to ensure that accurate data is used as part of the rent and HAP calculation. Views of responsible officials: There is no disagreement with the audit finding.