Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Voucher Cluster
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: MD015VO - 2023
Award Period: July 1, 2022 – June 30, 2023
Compliance Requirement: Eligibility
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or specific requirement: The Authority must do the following:
• 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).
• 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).
• 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).
• 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: The Authority was unable to provide adequate supporting documentation and evidence of internal control over compliance for eligibility requirements.
Questioned costs: $20,364
Context: Exceptions noted in 6 out of 40 files tested for eligibility requirements:
• Income support was not provided, or the support did not agree to the recertification, for 3 samples.
• Expense support was not provided, or the support did not agree to the recertification, for 2 samples.
• The Housing Assistance Payment (HAP) was not properly calculated due to income and/or expense amounts not being supported for 5 samples.
• Signed releases of information (HUD-9886 and general release forms) were not provided for 1 sample.
Cause: The Authority did not follow the established procedures in its Housing Choice Voucher Administrative Plan.
Effect: The Authority is not in compliance with eligibility requirements.
Repeat Finding: Yes, see finding 2022-002.
Recommendation: We recommend the Authority review their process and internal controls over eligibility to ensure compliance with HUD requirements and their administrative plan.
Views of responsible officials: There is no disagreement with the audit finding.