Finding Text
2020-003– ELIGIBILITY
MATERIAL WEAKNESS/NONCOMPLIANCE
U.S. Department of Housing and Urban Development
CFDA #:14.871/ 14.879 – Housing Voucher Cluster
CRITERIA
PHA responsibility for reexamination and verification. (1) 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 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. (24 CFR 982.516)
CONDITION
As a result of our audit procedures, we identified the following exceptions in our testing:
Six (6) instances of income, asset or medical expense miscalculation or insufficient verification
Twelve (12) instances of incorrect utility allowance
Two (2) instances of incorrect payment standard
CAUSE
The Authority did not properly oversee the administration of the Housing Choice Voucher and Mainstream Voucher programs.
EFFECT
The Authority is potentially incorrectly calculating and adjusting tenant rent and housing assistance payments.
QUESTIONED COSTS
None identified.
CONTEXT
We selected a sample of 25 from a population of 251. This was not a statistically valid sample.
REPEAT FINDING
Not a repeat finding.
RECOMMENDATION
We recommend the Authority provide training for the performance of reexamination procedures.
AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
See Corrective Action Plan.