FAC Explorer

Finding 392898 (2023-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-04-10
Audit: 303175
Organization: North Providence Housing Authority (RI)
Auditor: Marcum LLP

AI Summary

  • Core Issue: Five cases were found where income verification was missing, impacting rent calculations.
  • Impacted Requirements: Compliance with HUD regulations for documenting family income and determining rent payments was not met.
  • Recommended Follow-Up: Create a recertification checklist to ensure all necessary documentation is collected for tenant files.

Finding Text

2023-001 –ELIGIBLY: RENT CALCULATION Other Matter/Significant Deficiency U.S. Department of Housing and Urban Development CFDA #: 14.871 / 14.879 – Housing Voucher Cluster CRITERIA For both family income examinations and reexamination, 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.) (24CFR sections 982.201, 982.515, 982.516). CONDITION As a result of procedures, we identified five instances of missing income verification. CAUSE The Authority’s system of internal control over the participant recertification process was not sufficient to meet the requirements established by HUD. EFFECT Redetermination of tenant’s rent and the housing assistance payment was not performed in accordance with HUD regulations. As a result, tenants may have paid more or less in rent than they should have paid. QUESTIONED COSTS None noted. CONTEXT We selected a sample of 25 from a population of 276. This was not a statistically valid sample. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority develop and implement a recertification checklist to accompany the tenant file to ensure all required documentation is obtained. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.

Corrective Action Plan

The North Providence Housing Authority will be creating a check list which will include Income Verification as part of the participants file to be used for examinations, and reexaminations of income. This check list will be completed by the Housing Authority staff member, signed, and dated, showing that all required documents have been obtained and used for a successful processing of the tenants rent. Additionally, due to being a small housing authority, with only one HCV staff member, we have hired an HCV Assistant to help the HCV Coordinator in obtaining all information needed to comply with HUD’s regulations. Planned Implementation Date of Corrective Action: January 1, 2024 Planned Implementation Date of Corrective Action: Eileen Reyes/Michael McMahon/ Cheryl Lonardo

Categories

HUD Housing Programs Eligibility Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 392899 2023-001
    Significant Deficiency
  • 392900 2023-002
    Material Weakness
  • 392901 2023-002
    Material Weakness
  • 969340 2023-001
    Significant Deficiency
  • 969341 2023-001
    Significant Deficiency
  • 969342 2023-002
    Material Weakness
  • 969343 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $2.22M
14.850 Public and Indian Housing $346,941
14.879 Mainstream Vouchers $286,510
14.872 Public Housing Capital Fund $54,851
14.896 Family Self-Sufficiency Program $51,462