Finding 31193 (2022-003)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2023-09-20

Audit: 25746

Organization: Peoria Housing Authority (IL)

Auditor: Rector Reeder & Lofton PC

AI Summary

Core Issue: There are significant deficiencies in the Housing Choice Voucher tenant files, with 12% of files showing income-related errors.
Impacted Requirements: Compliance with federal regulations and HUD guidelines for documenting tenant eligibility is not being met, leading to potential misstatements in Housing Assistance Payments.
Recommended Follow-Up: Conduct a comprehensive audit of tenant files and enhance monitoring and training for staff to ensure compliance and accuracy in the Housing Choice Voucher program.

Finding Text

Finding 2022-003 ? Housing Choice Voucher Tenant File deficiencies ? Significant Deficiency and Noncompliance with Eligibility ? Qualified at Single Audit Level ALN No. 14.871 Criteria: The Code of Federal Regulations, the Housing Authority?s Admin Plan, and specific HUD guidelines in documenting and maintaining the Housing Choice Voucher tenant files. Condition & Cause: Our review of one hundred (100) Housing Choice Voucher tenant files revealed that there was a total of twelve (12) income-related errors, which represent 12% of the total files examined. We were able to numerically extrapolate ten (10) of these errors to the Housing Choice Voucher population. These consisted mainly of improper deductions, miscalculations, the use of outdated benefit information, and improper annualization of income. The remaining two (2) file errors were a result of lack of verification of income. Based on our extrapolation, we feel that the Housing Authority has a significant deficiency in this area of compliance. The Housing Authority has experienced high employee turnover and there are multiple vacancies in the Housing Choice Voucher department, which contributed to the deficiencies. Effect: The failure to properly calculate Housing Assistance Payments can result in a misstatement of HAP expense and corresponding operating subsidy earned by the Housing Authority, as well as undue financial burden on the tenant. Recommendation: We recommend that the Agency conduct a thorough tenant file audit of existing tenants in the Housing Choice Voucher program to determine whether there are any misstatements of HAP expense. We also recommend that the Agency increase their monitoring and review of the Housing Choice Voucher program files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. 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.

Corrective Action Plan

2022-003 Section 8 Housing Choice Vouchers Recommendation: We recommend the Authority implement controls to ensure all tenant file documentation is accurate and available, and that management review their procedures relating to PIC uploads to ensure compliance with HUD's requirements and timelines. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: 1. The PHA will implementing a Compliance Team to create and enforce a quality assurance plan. The plan will include a 100% file audit of HCV Participant Files to ensure full compliance, and PHA will process all corresponding corrections. 2. The Quality Assurance employees will continue to complete 10% of monthly internal file audits for recertification and 100% of new admissions, to ensure accurate calculations. The Quality Assurance team will also ensure that all proper documentation is present and accurate in all participant files. 3. In addition, PHA will contract a third-party consultant to complete a one-time 100% file audit, then test 10% of participant files, monthly. 4. The HCV Department Team, except for our inspectors, will complete Rent Calculation Training and obtain the exam certification, with a minimum requisite passing score of 80% Additionally, the third-party consultant will provide the HCV Team with technical support required to reconcile file deficiencies noted during the 100% file audit. Planned completion date for the corrective action plan: December 31, 2023; Ongoing Person Responsible: Armeca Crawford, Chief Executive Officer

Other Findings in this Audit

31190 2022-001

Significant Deficiency Repeat
31191 2022-002

Significant Deficiency
31192 2022-001

Significant Deficiency Repeat
607632 2022-001

Significant Deficiency Repeat
607633 2022-002

Significant Deficiency
607634 2022-001

Significant Deficiency Repeat
607635 2022-003

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
14.871	Section 8 Housing Choice Vouchers	$12.84M
14.850	Public and Indian Housing	$3.00M
14.872	Public Housing Capital Fund	$1.46M
14.879	Mainstream Vouchers	$314,531
14.896	Family Self-Sufficiency Program	$123,223
14.870	Resident Opportunity and Supportive Services - Service Coordinators	$63,511