Finding 385039 (2023-001)

Significant Deficiency Repeat Finding
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2024-03-26

AI Summary

  • Core Issue: Deficiencies in tenant file management, including incorrect utility allowances and housing assistance calculations.
  • Impacted Requirements: Compliance with HUD regulations for eligibility verification, income documentation, and annual reexaminations.
  • Recommended Follow-Up: Conduct a comprehensive review of tenant files to address and correct identified issues by June 30, 2024.

Finding Text

2023-001 Eligibility $ 104 Condition and Criteria: The Authority’s purpose for existence is providing decent, safe and affordable housing to low-income persons. As such, the Authority prepares a file for each admitted family, which contains information necessary to determine eligibility for assistance and calculations of rent assistance to be paid on the family’s behalf. HUD regulations prescribe the content of these family files. These requirements consist of the following: a. 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. b. 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. c. Determine income eligibility and calculate the tenant’s rent payment in accordance with HUD regulations. d. Select tenants from the public housing waiting list in accordance with the PHA’s tenant selection policies. e. Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary. Population and Items Tested: Testing of thirteen family files revealed the following deficiencies: 1. One file used an incorrect utility allowance. 2. One file failed to allow a disability deduction. 3. Two files calculated an incorrect housing assistance payment Auditor’s Recommendation: This is a repeat finding. A thorough review of tenant files should be performed for the purpose of eliminating the deficiencies. Grantee Response: We will comply with the auditor’s recommendation. Anticipated Completion Date: June 30, 2024

Corrective Action Plan

Condition and Criteria: The Authority’s purpose for existence is providing decent, safe and affordable housing to low-income persons. As such, the Authority prepares a file for each admitted family, which contains information necessary to determine eligibility for assistance and calculations of rent assistance to be paid on the family’s behalf. HUD regulations prescribe the content of these family files. These requirements consist of the following: a. 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. b. 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. c. Determine income eligibility and calculate the tenant’s rent payment in accordance with HUD regulations. d. Select tenants from the public housing waiting list in accordance with the PHA’s tenant selection policies. e. Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary. Population and Items Tested: Testing of thirteen family files revealed the following deficiencies: 1. One file used an incorrect utility allowance. 2. One file failed to allow a disability deduction. 3. Two files calculated an incorrect housing assistance payment Auditor’s Recommendation: This is a repeat finding. A thorough review of tenant files should be performed for the purpose of eliminating the deficiencies. Grantee Response: We will comply with the auditor’s recommendation. Anticipated Completion Date: June 30, 2024

Categories

Questioned Costs HUD Housing Programs Eligibility

Other Findings in this Audit

  • 385040 2023-002
    Significant Deficiency
  • 961481 2023-001
    Significant Deficiency Repeat
  • 961482 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $546,780
14.872 Public Housing Capital Fund $419,787
14.850 Public and Indian Housing $384,296