Finding Text
Federal Agency: Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871 and 14.879
Federal Award Identification Number and Year: AL001, 2022
Award Period: July 1, 2021, to June 30, 2022
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: Most PHAs devise their own application forms that are filled out by
the PHA staff during an interview with the tenant. The head of the household signs (a) one or more
release forms to allow the PHA to obtain information from third parties; (b) a federally prescribed
general release form for employment information; and (c) a privacy notice. Under some circumstances,
other members of the family are required to sign these forms (24 CFR sections 5.212 and 5.230).
The PHA must do the following:
1. As a condition of admission or continued occupancy, require the tenant and other family
members to provide necessary information, documentation, and releases for the PHA to verify
income eligibility (24 CFR sections 5.230, 5.609, and 982.516).
2. 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 income-based rent (24 CFR section 982.516).
3. Determine income eligibility and calculate the tenant’s rent payment using the documentation
from third-party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601
et seq.) (24 CFR sections 982.201, 982.515, and 982.516).
4. 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 section 982.516).
Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special
provision compliance deficiencies were noted. Of the tenant files provided, auditor noted the following
items:
Number of Instances -- Finding
1 -- Recertification not performed timely
1 -- No evidence of passing the annual inspection
Questioned Costs: $10,569
Context: Of the 40 tenant files tested, 2 tenant files contained the errors as noted above.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with
HUD rules and regulations, as well as their administrative policy.
Effect: The Authority does not have adequate procedures in place to ensure recertifications and units
are inspected timely.
Repeat Finding: No
Recommendation: We recommend management should designate one person to oversee the
recertifications and inspections are being performed in a timely manner. Furthermore, management
should ensure no HAP payments are issued for units that have not passed HQS housing inspections.
Views of responsible officials: There is no disagreement