Finding Text
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Assistance Listing Numbers: 14.871 & 14.879 Non Compliance - E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: 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). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: There are approximately 2,320 units. Of a sample size of thirty-four (34) tenant files, the following was noted: HUD form 9886 was unable to be provided in 12 files Verification of income was unable to be provided in 20 files Verification of assets was unable to be provided in 18 files HUD 50058 annual recertification was unable to be provided in 9 files Original Application was unable to be provided in 20 files Citizen Declaration Section 214 form was unable to be provided in 16 files Lead based paint form was unable to be provided in 24 files Signed lease was unable to be provided in 19 files Known Questioned Costs: $104,699* * Represents HAP attributable to twenty (20) tenant files for which the Authority could not demonstrate compliance with eligibility requirements. The questioned costs do not represent amounts determined to be ineligible but rather costs associated with the tenant that remained in noncompliance beyond the required recertification date. Cause: There is a material weakness in internal controls over the eligibility type of compliance related to the maintenance of tenant files in the Housing Voucher Cluster. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Authority is in material non-compliance with the eligibility requirements of the Housing Voucher Cluster programs. Recommendation: We recommend that the Authority implement a process whereby Authority personnel are hired and trained on tenant file maintenance so that documents are accumulated, stored and safeguarded to ensure compliance with the Uniform Guidance and the compliance supplement.