Finding 394824 (2023-001)

Finding 2023-001 – Low Income Public Housing Tenant Files – Eligibility – Noncompliance & Significant Deficiency – Public and Indian Housing – ALN 14.850 Condition & Cause: We reviewed fifteen (15) files from the Public Housing program. We noted seven (7) files that were not in compliance, or 47% of our sample. Some files were out of compliance in more than one area. Our review revealed the following discrepancies: • One (1) instance of failing to gather proper income verification; • Two (2) instances of failing to properly calculate annual income; • One (1) instance of failing to maintain EIV documentation; • Three (3) instances of failing to maintain birth certificates or social security cards; and • Three (3) instances of failing to maintain Declaration 214s We were able to extrapolate the miscalculations of annual income and found that the potential misstatement of rental revenue was immaterial to the financial statements. We noted that the PHA has experienced turnover in property managers over the past several audits and attribute this to the cause of the discrepancies. Criteria: The Code of Federal Regulations, the Housing Authority Admissions and Continued Occupancy Policy and specific HUD guidelines in documenting and maintaining Low Income Public Housing tenant files. Recommendation: We recommend that the Agency conduct a thorough tenant file audit of existing tenants to determine whether there are any additional misstatements. We also recommend that the Agency determine the best way to monitor compliance with local and federal regulations as it pertains to the upkeep of the tenant files. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes