Finding Text
FINDING NUMBER 2022-006
FEDERAL PROGRAM HOUSING VOUCHER CLUSTER:
SECTION 8 HOUSING CHOICE VOUCHERS/ EMERGENCY HOUSING
VOUCHERS
(ASSISTANCE LISTING NUMBERS 14.871/ 14.EHV)
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
TYPE OF FINDING COMPLIANCE AND INTERNAL CONTROL
COMPLIANCE
REQUIREMENT ELIGIBILITY
CONDITION During the Eligibility test, fifteen (15) participants’ files were examined related to the
reexamination process, and noted the following conditions:
a. In one (1) reexamination, the housing assistant payment (HAP) calculation was
not performed using the applicable payment standard. The application of the
correct payment standard modifies the HAP amount paid.
b. In five (5) participants’ files, the Enterprise Income Verification (EIV) report
corresponding to the annual reexamination selected for evaluation, was not
available for my review.
c. Twelve (12) files did not include the release form, HUD-9886, signed by all the
family members who were 18 years or older.
d. Five (5) files did not include certification of the verification in the sex offenders
register for one or more adult family member.
CRITERIA Code of Federal Regulation 24, Section 982.516 (a) states that the PHA must
conduct a reexamination of family income and composition at least annually; (2) the
PHA must obtain and document in the tenant file third party verification of the
following factors or must document in the file why third party verification was not
available: (A) reported family annual income; (B) the value of assets; (C) expenses
related to deductions from annual income; and (D) other factors that affects the
determination of adjusted income. Also, 24 CFR 982.516(g)(1) states that as a
condition of admission to or continued assistance under the program, the PHA shall
require the family head, and such other family members as the PHA designates, to
execute a HUD-approved release and consent form (including any release and
consent as required under § 5.230 of this title) authorizing any depository or private
source of income, or any Federal, State or local agency, to furnish or release to the
PHA or HUD such information as the PHA or HUD determines to be necessary. CRITERIA Code of Federal Regulation 24, Section 982.503 (a) states that (1) HUD publishes
the fair market rents for each market area in the United States. The PHA must adopt
a payment standard schedule that establishes voucher payment standard amounts
for each FMR area in the PHA jurisdiction. For each FMR area, the PHA must
establish payment standard amounts for each “unit size.” Unit size is measured by
number of bedrooms (zero-bedroom, one-bedroom, and so on). (2) The payment
standard amounts on the PHA schedule are used to calculate the monthly housing
assistance payment for a family (§982.505).
In accordance with the regulations at 24 CFR 5.856 and 5.905, O/As and PHAs must
perform necessary criminal history background checks to determine if an applicant,
or a member of an applicant’s household, is subject to a lifetime registration
requirement under a state sex offender registration program. This check must be
carried out with respects to the State in which the housing is located and with respect
to States where the applicant and members of the applicant’s household are known
to have resided.
CAUSE The Program’s internal controls and procedures failed to ensure that the
reexamination and HAP determination processes were performed according to
program requirements and guidelines. Also, the internal controls did not ensure that
all the required documentation necessary for the reexamination process was
obtained from the participants.
EFFECT The lack of monitoring and adequate supporting documentation during the
reexamination processes could lead to the approval and disbursement of improper
amounts and the approval of benefits to persons that do not qualify.
RECOMMENDATION I recommend management to continue strengthening its internal controls and
procedures to ensure that the reexamination and HAP determination processes are
performed according to program requirements and guidelines. Also, management
must reinforce the internal controls to ensure that all the required documentation
necessary for the reexamination process is obtained in a timely manner.
QUESTIONED COSTS None
PRIOR YEAR FINDING Not applicable. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED
CORRECTIVE ACTION Instructions were given to the Program staff to strengthening existing internal
controls and procedures to ensure that the reexamination and HAP determination
processes are performed according to program requirements and guidelines, and to
obtain in a timely manner all of the required documentation for each reexamination
executed. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED
CORRECTIVE ACTION Instructions were given to the Program staff to ensure timely registration of program
income transactions in the Integrated Disbursement and Information System (IDIS).
During the fiscal year 2021-2022, changes occurred in the program's management
staff, which may have led to the situation mentioned in the finding.