Finding Text
2022-003 - Eligibility ? Tenant Files Section 8 Housing Choice Vouchers ? CFDA Number 14.871 Material Weakness in Internal Control, Material Noncompliance Repeat of 9/30/21 Finding 2021-005 (Originally reported as finding 2020-005 at 09/30/20) Criteria: As a condition of assisted tenancy, the landlord and tenant must execute the lease agreement and tenancy addendum prior to the initial term of the lease, and the public housing authority must execute the HAP contract within 60 days from the beginning of the lease term (24 CFR 982.305). In addition, the tenant must submit to the public housing authority a request for approval of tenancy and a copy of the lease during the term of the voucher (24 CFR 982.302). Condition: Out of a total tenant population of approximately 884 leased vouchers, 25 files were selected for testing in a statistically valid sample. Exceptions were noted as follows: ? 1 error where the lease agreement was not signed by the owner ? 1 error where the file did not contain a signed lease agreement ? 1 error where the file did not contain a signed HAP contract. Also, during our New Admissions testing (11 tested out of 108 new admissions) we noted the following: ? 1 error where the HAP contract was signed but not dated by the Authority. ? 1 error where the lease agreement was not signed by the owner. ? 4 errors where the RFTA was signed but not dated by the landlord and/or by the tenant. Cause: Compliance with all of the HUD requirements was not being carefully followed and the Authority lacked procedures for proper oversight and review of employees performing these compliance procedures. Effect: The Authority is not in compliance with the assisted tenancy requirements. The HAP contract is void if the Authority is unable to obtain an executed lease agreement and tenancy addendum prior to the initial term of the lease. Also, the HAP contract is void if an executed HAP contract is not obtained within 60 days from the beginning of the lease term. In addition, the HAP contract is void if the request for approval of tenancy and copy of the lease is submitted after the lease term (including extensions). As such, the tenant would not meet the eligibility requirements to be housed. Questioned Costs: None. Recommendation: The Authority should correct the deficiencies noted in the tested files and utilize an ongoing quality control review process on the entire tenant population to ensure proper compliance with the requirements related to tenant eligibility. Ongoing staff training and timely management reviews should be utilized to ensure staff is aware of acceptable procedures. In addition, the Authority should review staffing levels, skill sets and case load. Views of Responsible Officials of the Auditee: The Authority acknowledges this finding and will establish more review, oversight and training for the staff responsible for these procedures.