Finding Text
2025-002 Eligibility Housing Voucher Cluster Significant Deficiency in Internal Control Other Matter to be Reported Under the Uniform Guidance Condition: Out of an approximate population of 3,800 tenants, a total of 40 tenant files were selected for testing and the following deficiencies were noted: • Four files contained an incorrect utility allowance • One file contained an incorrect payment standard • One file was missing an adult member of the household’s signature on the 9886 form Criteria: The Authority’s administrative plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding complete and accurate tenant files. Context: The auditor haphazardly selected 40 tenant files out of the population, which is considered to be a statistically valid sample. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority determined the cause for each error is as follows: • Incorrect utility allowance – Resulted from manual calculation of utility allowance for 6-bedroom unit. The Authority’s software limits bedroom size to 5 bedrooms. Staff did not properly adjust utility allowances against changes to the voucher size. • Incorrect payment standard – Year over year decreases to payment standard led to a manual override of the correctly used system generated payment standard resulting in the incorrect payment being applied. • Missing 9886 form – The Authority’s data system contributed to the 9886 form not being signed by an adult household member as the system does not notify staff when a minor turns 18 after the time of recertification. Effect: The Authority is not in full compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: None, HAP amounts were not impacted by these noted items. Auditor Recommendations: The Authority should continue to train staff on the established procedures and controls in place to ensure full compliance in regard to eligibility. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample.