Finding Text
1. Annual Income Verification Finding Number: 2022-001 Assistance Listing Number and Title: AL # 14.871 - Section 8 Housing Choice Vouchers and AL #14.879 Mainstream Voucher Program Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Housing and Urban Development Compliance Requirements: Section E - Eligibility, Section L -Reporting, and Section N ? Housing Assistance Payments Pass-Through Entity: N/A Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 24 CFR section 982.516(a) states the Public Housing Authority (PHA) must conduct a reexamination of family income and composition at least annually. Section 2 states the PHA must obtain and document in the tenant file third-party verification of the following factors or must document why third-party verification was not available: (i) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income- based rent. 24 CFR section 908 states the Public Housing Authority (PHA) is required to submit HUD-50058 form electronically to HUD each time the Public Housing Authority (PHA) completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. 24 CFR section 982.505(b) states the Public Housing Authority (PHA) shall pay a monthly housing assistance payment on behalf of the family that is equal to the lower of: (1) The payment standard for the family minus the total tenant payment; or (2) The gross rent minus the total tenant payment. The Authority incorrectly used a check amount instead of third-party verification of account balances for 5.9 percent of the tenant files tested for the Housing Choice Voucher program. This resulted in the data reported on HUD-50058 to be inaccurate. The Executive Director and Housing Choice Voucher employees should ensure all tenant files maintain the appropriate documentation to meet the requirements of income verification and housing assistance payments reporting.