Finding Text
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 – Material Weakness
Criteria
The PHA must determine income eligibility and calculate the tenant’s rent payment using the
documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR
section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516).
Condition
During our testing of fifteen tenant files, we found one file where Housing Assistance Payment
was incorrect.
Cause
Proper eligibility documentation is not being prepared and maintained in all tenant files.
Questioned Costs
Not material
Context
We reviewed a sample of 14 tenant files out of a total of 132 tenants.
Effect
The Authority may be providing assistance to tenants that no longer qualify or may be charging
incorrect rental rate per approved policies.
Recommendation
We recommend tenant files should be maintained in an orderly fashion and all required
documentation should be kept in the appropriate file. Each file should also contain a checklist that
contains separate line items for each eligibility requirement.
Repeat Finding
This is a repeat finding of 2021-003
Views of Responsible Officials
Management will continue to educate new staff and make sure they understand the importance
of compliance with all policies. We will continue to emphasize the importance of documentation
and reviewing checklists to improve our processes.