Finding 23872 (2022-001)

Significant Deficiency Repeat Finding
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-03-26
Audit: 19862

AI Summary

  • Core Issue: The Authority failed to properly document eligibility requirements for the Housing Choice Voucher Program, leading to non-compliance with HUD regulations.
  • Impacted Requirements: Missing documentation includes signed forms and third-party verifications for income, assets, and expenses, affecting the accuracy of housing assistance payments.
  • Recommended Follow-Up: The Authority should enhance their eligibility determination processes to ensure all necessary documentation is collected and maintained accurately.

Finding Text

Finding 2022-001 ? Eligibility Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Choice Voucher Program Assistance Listing Number: 14.871 Award Period: 7/1/21-6/30/22 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria: 24 CFR section 982.516, for both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) 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 other income-based rent. 24 CFR section 982.516 states that the PHA must reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. 24 CFR sections 5.212 and 5.230 states that the head of household must sign one or more release forms allowing the Authority to obtain information from third parties, as well as a federally prescribed general release form for employment information. Context: During our testing of 60 files for eligibility requirements, we noted the following: - 1 files did not have a signed Declaration 214 form for all members of the household - 4 files did not have proper support for income - 2 files did not have proper support for assets - 2 files did not have proper support for expenses - In total, 6 files did not have properly calculated HAP/TAP due to incorrect income, asset and/or expense support - 1 file did not have a signed HUD-9886 form in the file - 3 files did not have a signed general release form in the file - 1 file did not have a signed HAP contract in the file Questioned Costs: Unable to determine. Cause: The Authority?s current staff attempted to correct prior documentation errors during the period, but were not able in all cases, to obtain some missing information. In addition, in a few cases, the Authority experienced difficulty in obtaining some information during the period which occurred during COVID. Effect: The Authority is not in compliance with HUD regulations. Repeat Finding: Yes Recommendation: The Authority should review their processes for eligibility determination and documentation to ensure all information is properly documented and maintained in the files. View of Responsible Officials: There is no disagreement with this audit finding.

Categories

HUD Housing Programs Eligibility Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 23868 2022-001
    Significant Deficiency Repeat
  • 23869 2022-002
    Significant Deficiency Repeat
  • 23870 2022-003
    Material Weakness Repeat
  • 23871 2022-004
    Significant Deficiency Repeat
  • 23873 2022-002
    Significant Deficiency Repeat
  • 23874 2022-003
    Material Weakness Repeat
  • 23875 2022-004
    Significant Deficiency Repeat
  • 600310 2022-001
    Significant Deficiency Repeat
  • 600311 2022-002
    Significant Deficiency Repeat
  • 600312 2022-003
    Material Weakness Repeat
  • 600313 2022-004
    Significant Deficiency Repeat
  • 600314 2022-001
    Significant Deficiency Repeat
  • 600315 2022-002
    Significant Deficiency Repeat
  • 600316 2022-003
    Material Weakness Repeat
  • 600317 2022-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $9.04M
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $330,481
14.182 Section 8 New Construction and Substantial Rehabilitation $275,551
14.871 Emergency Housing Voucher $187,157
10.415 Rural Rental Housing Debt $99,369
10.427 Rural Rental Assistance Payments $70,850
10.415 Rural Rental Housing Subsidy $11,532
14.239 Home/tenant Based Assistance $0