Finding Text
Assistance Listing Number, Federal Agency, and Program Name Housing Vouchers Cluster 14.871 and 14.879 Federal Award Identification Number and Year Not applicable Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding No Criteria Under 24 CFR 5.230, 5.609, 982.201, 982.515, 982.516, and 982.516, the Commission must: a. As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility. b. For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual 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. c. Determine income eligibility and calculate the tenant?s rent payment using the documentation from third party verification. d. Select tenants from the HCVP waiting list (see special tests and provisions HCVP waiting list). e. Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. Condition Participant files selected for testing did not include complete information to support participant eligibility. Questioned Costs $7,965 Identification of How Questioned Costs Were Computed Questioned costs were computed on the individuals below by identifying overpayments of subsidy charged compared to the appropriate amount. Context A total of 40 tenant files were tested, and the results are as follows: A total of 12 participant files were delinquent recertifications due to management delays and completed after the recertification date. Cause and Effect The Commission did not have the proper controls in place to ensure tenant recertifications are completely timely. Due to the lack of adequate controls, questioned costs for overpayment of subsidy were identified above and the housing assistance payments could be incorrect for tenants. Recommendation The Commission should establish procedures to ensure participant recertification are documented and completed timely. Views of Responsible Officials and Planned Corrective Actions Staff will be retrained on the compliance requirements under the standards of the HCV Program through the oversight of the rental assistance department manager and continued occupancy supervisor. The department manager and supervisor will continue to utilize all Yardi monitoring reports to ensure the Department is operating in accordance with industry standards. Reporting will be done and monitored monthly to meet set goals. We know and maintain we will work in accordance with HUD rules and regulations where annual recertification processes are concerned. The department manager will review the certification pipeline weekly to ensure compliance and follow up with the housing specialist to ensure compliance and meeting set weekly and monthly goals and metrics.