Finding 478277 (2023-003)

Significant Deficiency Repeat Finding
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-07-11

AI Summary

  • Core Issue: Three tenant files had errors in income calculations, affecting eligibility determinations.
  • Impacted Requirements: The PHA must verify and document family income and assets as per federal regulations.
  • Recommended Follow-Up: Implement stronger internal controls to ensure compliance and prevent future errors.

Finding Text

Federal Program – Section 8 Housing Choice Voucher Program AL #14.871 – Eligibility for Individuals Federal Program Section 8 Housing Choice Vouchers AL #14.871 – Significant Deficiency Criteria The PHA must obtain and document in the family file third party verification of reported family annual income; the value of assets; expenses related to deductions from annual income; and other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). Condition During our testing of nineteen tenant files, we noted that three files had income calculation errors. Questioned Costs Undeterminable Context We reviewed a random sample of nineteen out of 189 tenant files for a tenant’s HAP amount. Effect The income verified was not appropriately used for determining the tenant’s income. Cause The Authority experienced turnover in the Section 8 program. As a result, controls were not in place to ensure proper documentation. Repeat Finding This is a repeat of finding 2022-003. Recommendation We recommend that the Authority implement proper internal controls to ensure the Authority’s compliance with special tests requirements. Views of Responsible Officials We are aware of the issue and have taken subsequent steps to ensure compliance with this requirement.

Corrective Action Plan

1. Correcting Plan CHEDA staff are aware of income eligibility documentation and will implement an internal control process. 2. Explanation of Disagreement with the Audit Finding There is essentially no disagreement with the finding. 3. Official Responsible for Ensuring CAP Karie Kirschbaum – Executive Director 4. Planned Completion Date for CAP Immediately. 5. Plan to Monitor Completion of CAP The Executive Director will monitor completion of the CAP.

Categories

HUD Housing Programs Eligibility Significant Deficiency Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 478276 2023-002
    Material Weakness Repeat
  • 478278 2023-004
    Significant Deficiency Repeat
  • 1054718 2023-002
    Material Weakness Repeat
  • 1054719 2023-003
    Significant Deficiency Repeat
  • 1054720 2023-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $997,944
14.872 Public Housing Capital Fund $237,869
14.850 Public and Indian Housing $183,062