Finding Text
Finding 2025-004: Eligibility – Housing Voucher Cluster Federal Program: Housing Voucher Cluster Assistance Listing No.: 14.871/14.879 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Pass-Through Entity: None Federal Award Identification Number: ME901VO/COVID-19/ME901E/ME901DV Repeat Finding: This is not a repeat finding Criteria – HUD regulations require Public Housing Authorities (PHAs) to annually recertify family composition, income and other eligibility factors and accurately report beneficiary information on Form HUD-50058. Changes in family composition must be properly reflected in the tenant record to ensure the correct voucher size, payment standard, tenant rent calculation and Housing Assistance Payment (HAP) subsidy are determined in accordance with HUD requirements. Condition – We identified one instance where a household receiving a housing choice voucher had a family member move out between their interim and annual recertifications. At the time of annual recertification, their household composition was not updated to reflect one less family member in the form 50058. This impacted the bedroom voucher calculation, the family payment standard used, the tenant rent to owner and the HAP subsidy. This resulted in overpaid HAPs for four months during 2025. Questioned costs – We identified known questioned costs of $1,340 in overpaid HAPs during 2025. Likely questioned costs are statistically projected estimates of unallowable expenses across an entire population when an error is found in a tested sample. We have extrapolated an error rate based on HAPs paid in our sample across the entire HAP population and estimate projected likely questioned costs of $157,529. Cause – The error occurred because controls over the annual recertification process did not ensure that information previously processed through an interim certification was accurately carried forward and verified on the annual recertification and corresponding Form HUD-50058 submission. Effect or potential effect – Failure to accurately update family composition during annual recertifications may result in incorrect voucher sizing, tenant rent calculations and HAP subsidies. Consequently, federal housing assistance may be overpaid or underpaid, resulting in noncompliance with HUD program requirements and inaccurate subsidy determinations. Context – We tested a statistically valid sample of annual certifications to recalculate aspects of the HAP calculations for compliance with HUD requirements. One exception was identified in which a family composition change was not accurately reflected in the annual recertification record, resulting in an incorrect bedroom size and payment standard being used for subsidy calculations. Recommendation – We recommend MaineHousing strengthen review procedures over annual recertifications to ensure all family composition changes processed through interim certifications are accurately incorporated into annual recertifications and Form HUD-50058 submissions. Management should implement supervisory review procedures to verify voucher size determinations, payment standards, tenant rent calculations and HAP calculations before recertifications are finalized. Additionally, management should evaluate whether any subsidy adjustments or recovery actions are required for the affected participant. Views of responsible officials – Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the Summary Schedule of Prior Audit Findings.