Finding 387660 (2023-002)

2023-002 – Eligibility U.S. Department of Housing and Urban Development 14.850 – Public and Indian Housing Condition: During review of the Housing Choice Voucher program, RBT noted that two tenant files were missing the HUD-9886 form and one tenant file was missing the income verification (EIV) form. RBT also noted that the Authority was not appropriately documenting and maintaining documentation of the controls over Eligibility. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. As a condition of continued occupancy, PHAs must require the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility. Cause: The Authority does not have a central, uniform location to document the controls in place over Eligibility. Effect: Potential noncompliance if a control is missed. Questioned Costs: None identified. Perspective: Out of 25 tenant files reviewed, two were missing the HUD-9886 form, and one was missing the EIV form. Repeat Finding: This is a repeat finding. Recommendation: We recommend that the Authority establish a checklist for the Occupancy Representatives to use during the recertification process to ensure all compliance requirements are met. The checklist should be signed or initialed by the representative and maintained in the tenant’s file. This checklist will serve as documentation that all compliance requirements were verified for the tenant. Auditee’s Response: See corrective action plan.