Finding Text
Finding reference: 2022-004 Federal Agency: Department of Housing and Urban Development Federal Program: 14.871 Housing Choice Vouchers Grant Period: 07/01/21 ? 06/30/22 Requirement: Eligibility Type of Finding: Significant deficiency in internal control over major programs Condition: The City did not maintain appropriate documentation to support tenant eligibility and tenant income was misstated on the HUD-50058, Family Report. Criteria: Supporting documentation for eligibility including HAP contracts, income sources, inspections, rent reasonableness, and utility allowance calculations are required to be maintained for each tenant that is issued a voucher. Tenant family income is to be examined at least annually and all sources of income are to be considered in the calculation. Food stamps do not qualify as income and must be excluded. Cause: Management does not have procedures in place to maintain appropriate documentation. Also, there is no review in place after intake is performed. Effect: Tenants could be issued a voucher in error or at an erroneous amount. Context: Out of forty tenants selected for testing, there were 13 instances of missing supporting documentation and three instances of miscalculated tenant income. Recommendation: For each annual recertification, interim examination, and new intake performed, proper documentation should be maintained in the appropriate tenant file to support each line of the form HUD-50058. In order to achieve this, a checklist should be utilized and reviewed after the intake process is completed. Also, form HUD-50058 should be reviewed for accuracy and completeness. Views of Responsible Officials and Planned Corrective Actions: See corrective action plan.