Finding 393358 (2023-008)

Significant Deficiency
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2024-04-16

AI Summary

  • Core Issue: The Authority failed to provide proper documentation for one tenant's income during recertification, leading to a significant deficiency in compliance.
  • Impacted Requirements: The Authority must obtain and document third-party verification of family income, assets, and related expenses as per federal guidelines.
  • Recommended Follow-Up: Implement stronger controls to ensure all tenant files have the necessary documentation to meet eligibility requirements.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 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 PHA must obtain and document in the tenant file third-party verification of the following factors, or must document in the tenant file why third-party verification was not available:(i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income. (2 CFR section 982.516) Condition: The Authority did maintain support for the income used in a tenant’s recertification. Questioned costs: $6,228 Context: A sample of 40 tenants found that 1 tenant file did not contain proper support for the income amount used in their recertification. Cause: The Authority did not maintain the proper support for the eligibility determination. Effect: The Authority is not in compliance with eligibility requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that tenant files contain all required documentation. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the Authority implements controls to ensure that tenant files contain all required documentation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Current processes in place require collection and review of documentation by individual HPC assigned to a particular file. Upon transfer to the associated administrative team member, a second review is to be conducted to verify all required documentation is present. Any omissions require the HPC to reach out and supply mission documentation before action can be processed. We also secured a contract with The Work Number solution to assist with third party income verifications. Name(s) of the contact person(s) responsible for corrective action: Entire HCVP team and management. Planned completion date for corrective action plan: Currently implemented and ongoing.

Categories

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

Other Findings in this Audit

  • 393344 2023-002
    Material Weakness Repeat
  • 393345 2023-002
    Material Weakness Repeat
  • 393346 2023-002
    Material Weakness Repeat
  • 393347 2023-003
    Material Weakness Repeat
  • 393348 2023-003
    Material Weakness Repeat
  • 393349 2023-003
    Material Weakness Repeat
  • 393350 2023-004
    Material Weakness Repeat
  • 393351 2023-004
    Material Weakness Repeat
  • 393352 2023-004
    Material Weakness Repeat
  • 393353 2023-005
    Material Weakness Repeat
  • 393354 2023-006
    Material Weakness
  • 393355 2023-007
    Significant Deficiency Repeat
  • 393356 2023-007
    Significant Deficiency Repeat
  • 393357 2023-007
    Significant Deficiency Repeat
  • 393359 2023-008
    Significant Deficiency
  • 393360 2023-008
    Significant Deficiency
  • 393361 2023-009
    Significant Deficiency
  • 393362 2023-009
    Significant Deficiency
  • 393363 2023-009
    Significant Deficiency
  • 393364 2023-010
    Significant Deficiency
  • 393365 2023-010
    Significant Deficiency
  • 393366 2023-010
    Significant Deficiency
  • 969786 2023-002
    Material Weakness Repeat
  • 969787 2023-002
    Material Weakness Repeat
  • 969788 2023-002
    Material Weakness Repeat
  • 969789 2023-003
    Material Weakness Repeat
  • 969790 2023-003
    Material Weakness Repeat
  • 969791 2023-003
    Material Weakness Repeat
  • 969792 2023-004
    Material Weakness Repeat
  • 969793 2023-004
    Material Weakness Repeat
  • 969794 2023-004
    Material Weakness Repeat
  • 969795 2023-005
    Material Weakness Repeat
  • 969796 2023-006
    Material Weakness
  • 969797 2023-007
    Significant Deficiency Repeat
  • 969798 2023-007
    Significant Deficiency Repeat
  • 969799 2023-007
    Significant Deficiency Repeat
  • 969800 2023-008
    Significant Deficiency
  • 969801 2023-008
    Significant Deficiency
  • 969802 2023-008
    Significant Deficiency
  • 969803 2023-009
    Significant Deficiency
  • 969804 2023-009
    Significant Deficiency
  • 969805 2023-009
    Significant Deficiency
  • 969806 2023-010
    Significant Deficiency
  • 969807 2023-010
    Significant Deficiency
  • 969808 2023-010
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.023 Emergency Rental Assistance Program $179.83M
14.195 Section 8 Housing Assistance Payments Program $158.19M
21.026 Homeowner Assistance Fund $122.54M
14.275 Housing Trust Fund $6.62M
14.239 Home Investment Partnerships Program $4.63M
14.871 Section 8 Housing Choice Vouchers $2.26M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $961,767
14.879 Mainstream Vouchers $285,184