Finding 238658 (2022-001)

Finding 2022-001 ? Housing Choice Voucher Tenant Files ? Eligibility ? Internal Control over Tenant Files ? Noncompliance and Significant Deficiency Housing Choice Voucher Program CFDA #14.871 Condition & Cause: Our review of two hundred forty-five (245) HCV tenant files revealed that there were ninety-five (95) files containing errors of noncompliance noted during the audit. Of these, there were nineteen (19) income errors. This represents a 7.76% sample deviation rate across the total population. The income errors consisted of failure to calculate tenant income correctly, failure to have a third party verify tenant income correctly, and improper year-to-date analyses. We noted seventy-four (74) files that had certifications not completed within 12 months of the prior annual. There was one (1) file in which the tenant should have been removed from the program but was not. We also found one (1) file in which the tenant was not given the correct deductions. Lastly, we found five (5) files that contained forged documents, although these files had additional errors that fall under the categories above. Old recertification packets that had been filled out by the tenant were photocopied and brought forward as support for current recertifications. Dates were changed for the photocopies to give the impression that the documents had been signed at the time of the current certification. During the audit, it was noted that although COVID procedures approved by HUD have expired, the Authority is still experiencing difficulties trying to get tenants to return recertification documentation. Criteria: The Code of Federal regulations, the Housing Authority?s Administrative plan, and specific HUD guidelines in documenting and maintaining the Housing Choice Voucher tenant files. Recommendation: We recommend that the Agency conduct a thorough tenant file audit of existing tenants in the HCV program to determine whether there are any misstatements of rental income. We also recommend that the Agency increase their monitoring and review of the HCV program files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. Our experience with agencies that increase monitoring and review of the files is that there are dramatically decreased error rates. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.