Finding 429 (2020-002)

2020-002 Eligibility Housing Voucher Cluster Material Weakness in Internal Control Material Noncompliance Condition: Out of an approximate population of 17,476 tenants, 44 tenant files were tested and the following deficiencies were noted: • Nineteen files did not have annual recertifications performed during the year, • Seven files did not have correct utility allowance or documentation required to determine correct utility allowance, • Six files did not have 9886 release of information forms with 15 months of annual recertification, • Five files had HAP payments that did not agree to the HAP register, • Two files did not have rent reasonableness performed under a circumstance were it would be required to, • Two tenants did not have inspections performed during the year, • One file had an incorrect HAP calculation, and • One file did have the required forms of identification documented. Auditor’s Recommendations: The Authority should consider reevaluating 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. Action Taken: Leadership of the Houston Housing Authority acknowledges this issue and agrees with the finding. To eliminate the number of delinquent recertifications management of the HHA program has undertaken a project to eliminate all of the delinquencies and maintain the current status of those HCVP files where the recertification is not delinquent. An incentive plan has been created where certain HCVP staff will be granted overtime in the case of hourly employees and paid an incentive in the case of salaried employees to eliminate the existing backlog of delinquent recertifications. Each employee who works on this program is to be verified that they have the training necessary to work on the recertifications. In addition if recertifications are part of their normal work load they will have to maintain the pace that is necessary to not create additional delinquencies in order to participate in the incentive program. Hourly employees who are not successfully contributing to the project will be either be offered additional training or removed for eligibility to participate. Salaried employees will be compensated on a completed file basis with the HUD PIC acceptance of the data as the benchmark for completion and receipt of the incentive pay for the completed recertification. The HCVP management staff is confident that they can eliminate the backlog prior to the end of the 2023 calendar year.