Finding 1238665 (2025-004)

Federal Program – Section 8 Housing Choice Voucher Program AL #14.871 – Eligibility for Individuals Federal Program Section 8 Housing Choice Vouchers AL #14.871 – Material Weakness Criteria The PHA must obtain and document in the family file third party verification of reported family annual income; the value of assets; expenses related to deductions from annual income; and other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). Condition During our testing of fifteen tenant files, we noted that four files had income calculation errors and one of those files used the incorrect payment standard and Utility allowance for the household. We also noted four files with checklists filled out but not signed and one file missing a checklist. Questioned Costs Undeterminable. Context We reviewed a random sample of fifteen out of 143 tenant files for a tenant’s HAP amount. Effect The income verified was not appropriately used for determining the tenant’s income. Cause The Authority experienced turnover in the Section 8 program. As a result, controls were not in place to ensure proper documentation. Repeat Finding This is a repeat of finding 2024-003. Recommendation We recommend that the Authority implement proper internal controls to ensure the Authority’s compliance with special tests requirements. Views of Responsible Officials We are aware of the issue and have taken subsequent steps to ensure compliance with this requirement.