Finding Text
B. Findings and Questioned Costs for Federal Awards 2022-001 ? Eligibility U.S. Department of Housing and Urban Development 14.871 ? Section 8 Housing Choice Vouchers Condition: During the audit, it was noted that out of 19 tenant files reviewed for the Section 8 Housing Choice Vouchers program, 1 file was missing a signed form HUD-9886 and 14 files did not have third-party income verification complete. The Authority stores the third-party income verification forms in a separate, locked location for security purposes, and was not able to locate them. Criteria: As a condition of admission or continued occupancy, PHAs must require the tenant and applicable family members to provide necessary information and releases for the PHA to verify income eligibility and obtain and document the family file third-party verification of reported family income during the annual reexamination of family income. Cause: The Authority did not have sufficient controls in place over eligibility to ensure required documentation was retained. Effect: Potential loss of funding due to noncompliance. Questioned Costs: None identified. Perspective: Based on the number of tenant files with findings, we believe this is a systemic event. Repeat Finding: Not a repeat finding. Recommendation: We recommend that the Authority establishes processes and controls to ensure eligibility requirements are met, including retaining required documentation. Auditee?s Response and Corrective Action Plan: See corrective action plan.