Finding 394998 (2023-001)

Finding 2023-001 U.S. Department of Housing and Urban Development (HUD) Housing Voucher Cluster/Section 8 Housing Choice Voucher – ALN 14.871 Eligibility Repeat Finding from 2022 Condition: During our review of the HUD-50058 Family Report (HUD-50058), we noted two instances in which the correct income support and/or asset verifications were not used from the tenant’s file. The Elk County Housing Authority (Authority) did not have sufficient controls in place to ensure the required income support and/or asset verifications were used. Criteria: The Authority is required to prepare and submit a HUD-50058 form each time the Authority completes an admission, annual reexamination, portability move-in, or other change of unit for a family. The Authority is to obtain and document in the family file, third party verification of (1) reported family 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). The HUD-50058 and supporting documentation is utilized to determine eligibility and calculate tenant rent and rental/housing assistance payments for each program participant. Cause: The Authority did not have in place proper control procedures to ensure that HUD-50058 forms were completed accurately and that the required income support and/or asset verifications were used. Effect: HUD-50058 forms provide essential information to HUD and assist with the determination of program eligibility. In addition, the HUD-50058 form provides for the calculation of tenant rent and rental/housing assistance payments. A lack of functioning of internal controls could lead to inaccurate HUD-50058 forms. This could result in program participants or HUD being over- or under-charged tenant rent. Questioned Costs: Unknown Recommendation: We recommend that the Authority implement procedures to ensure all required income verification and other supporting documentation is obtained when completing the HUD-50058 forms, and to the extent they are not, that action be taken to resolve any issues, and that this action be documented. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding; see separate corrective action plan.