Finding Text
2021-002 Eligibility
Housing Voucher Cluster
Material Weakness in Internal Control
Material Noncompliance
Condition: Out of an approximate population of 17,110 tenants, 43 tenant files were tested and the following deficiencies were noted:
• Fifteen files did not have annual recertifications performed during the year,
• All files did not have 9886 release of information forms with 15 months of annual recertification,
• Six files did not have a 214 declaration form for all members of the household,
• Four tenant did not have the required form of identification documented,
• Two files did not have correct utility allowance calculation documentation,
• Twelve tenants did not have proper documentation for reported income,
• One file did not use the correct payment standard,
• Two files had an incorrect HAP calculation, and
• Three files had HAP from the 50058 annual recertification that did not match the HAP register.
Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete and accurate tenant files.
Context: The auditor randomly selected 43 tenant files out of the population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files.
Cause: The Authority experienced staffing and operational challenges during the onset of COVID and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments.
Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided.
Questioned Costs: Unknown.
Auditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample.
Management Response: See Corrective Action Plan.