Tenant Files Condition: Housing Choice Vouchers Move-ins: 1. In two (2) instances out of ten (10) tenant files tested, the date on the lease agreement did not agreement to the effective move-in date. 2. In six (6) instances out of ten (10) tenant files tested, the lease agreement was not maintained in the tenant's file. 3. In one (1) instance out of ten (10) tenant files tested, the lease agreement did not indicate the initial lease date or the rent amount. 4. In ten (10) instances out of ten (10) tenant files tested, the "Lease Addendum" - Violence Against Women and Justice Department Reauthorization Act of 2005, was not signed by the Landlord. 5. In four (4) instances out of ten (10) tenant files tested, the HAP Contract was not signed by the Owner. 6. In three (3) instances out of ten (10) tenant files tested, the Tenancy Addendum was not maintained in the tenant's file. 7. In two (2) instances out of ten (10) tenant files tested, the Voucher expired prior to the issuance of the Request for Tenancy Approval. 8. In one (1) instance out of ten (10) tenant files tested, the "Reasonableness Valuation" form was not maintained in the tenant's file. 9. In one (1) instance out of ten (10) tenant files tested, the "Addition to Landlord and Tenant Lease" was not maintained in the tenant's file. Recertification: 1. In fifteen (15) instances out of twenty-five (25) tenant files selected for testing, that the notification of corrective actions was indicated to the Landlord, without indicating the number of days allowed for the correction. 2. In one (1) instance out of twenty-five (25) tenant files selected for testing, the annual recertification was not performed, during the 2022 fiscal year. 3. In one (1) instance out of twenty-four (24) tenant files selected for testing, the Authorization for the Release of Information (Form HUD-9886), was not dated by the tenant. 4. In two (2) instances out of twenty-four (24) tenant files selected for testing, the annual income was not verified in accordance to ?Part III: Verifying Income and Assets ? 7-III.A. Earned Income?. 5. In four (4) instances out of twenty-four (24) tenant files selected for testing, the inspection report maintained in the tenant's file, indicated that the inspection failed and/or was inconclusive; therefore, no Pass inspection was obtained, prior to the tenant?s effective move-in date. Move-outs: 1. In four (4) out of five (5) tenant files, selected for test, there was no notice sent to the landlord, indicating the termination date. Criteria: 1. Lease agreement must be signed by the tenant and landlord, prior to the PHA making a subsidy payment to the landlord. 2. Rent reasonableness must be determined and documented on a case-by-case basis that the approved rent is reasonable in comparison to rent for other comparable unassisted units in the market. The PHA will not approve a lease until the PHA determines that the initial rent to owner is a reasonable rent. 3. The Lease Addendum ? Violence Against Women and Justice Department Reauthorization Act of 2005 form, must be signed by the landlord and tenant, prior to the PHA making a subsidy payment to the landlord. 4. Passed inspection must be obtained, prior to the tenant occupying the housing unit. In addition, deficiencies must be reinspected within 30 days. 5. Once a family?s housing choice voucher term expires, the family is no longer eligible to search for housing under the program. 6. For verification of annual income, family must provide originals of up to the four most concurrent pay stubs. SS/SSI benefits, requires the PHA to request a current SSA benefit verification letter from each family member that receives social security benefits. 7. The HAP contract represents a written agreement between the PHA and the owner of the dwelling unit occupied by a HCV assisted family. 8. Authorization for the release of information form, must be signed and dated by the tenant, prior to the PHA requesting income information from the sources listed on the form. Effect: Potential questioned cost of $15,556.00. Context: Tenant files tested consisted of move-ins, recertifications and move-outs. Population Size Number: 899 tenant files Dollar Amount: $3,667,783. Sample Number: 40 tenant files tested Dollar Amount: $163,194. Items Not in Compliance Number: 15 non-compliance findings Dollar Amount: $15,556. Questioned Costs There were potential questioned costs of $15,556.00. Cause: Oversight by Management. Recommendation: In order to be in compliance with guidelines established by the Department of Housing and Urban Development, I recommend that Springfield Metropolitan Housing Authority 1) determines the rent reasonableness, prior to making a subsidy payment to the landlord; 2)obtain the tenant and landlord signature, prior to making a subsidy payment to the landlord; 3) obtain the lease-addendum ? violence against women form, prior to making a subsidy payment to the landlord; 4) The HAP should be signed by the tenant and the owner, prior to the tenant occupying the housing unit; 5) obtain the tenant?s signature and date on the authorization for release of information, prior to requesting household income information, and 6) Annual income should be verified by the PHA, prior to the tenant occupying the housing unit. By performing these procedures, the risk of incurring questioned costs will be significantly reduced. Views of Responsible Officials and Planned Corrective Actions: Springfield MHA will review all files from this audit to make necessary corrections. SMHA will review and update policy to ensure all program requirements are met.