Finding Text
US Department of Housing and Urban Development Direct Award Program Name Public and Indian Housing CFDA Number 14.850 2022-002 Income Eligibility Significant Deficiency Criteria: As a condition of admission or continued occupancy, HUD requires the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility (24 CFR sections 5.230, 5.233, and 982.516). Condition: Incomplete documentation of tenant?s income eligibility for participation in the Public and Indian Housing Program. During the sampling of 22 tenant files, 1 did not contain EIV reports to document and verify income eligibility. Context: The Authority manages 221 Public Housing Units. We sampled 22 tenant files for multiple compliance requirements. With the 1/22 error rate, we would expect 10 files to have this issue. Cause: The Authority did not have adequate controls to ensure that EIV reports were obtained during admission and re-examination of tenant for the Public Housing Program. Effect: Compliance with income limits and eligibility could not be demonstrated for sampled tenants. Therefore, ineligible individuals may be receiving rental assistance based on incorrectly calculated based and unverified incomes. Recommendations: Management should implement internal control procedures to ensure that timely EIV reports are obtained during admission and re-examination. Management Views: Management agreed with the audit finding and prepared a Corrective Action Plan (CAP).