Finding Text
2023-004 ALN 14.871 – Housing Voucher Cluster – Eligibility
Condition and Criteria:
During our audit, it was determined that significant deficiencies in internal controls existed over the Authority’s Housing Voucher Cluster eligibility process being compliant with HUD regulatory requirements. EIV reports should be run within 120 days of move-in for new admissions to the program. An EIV report should be run and maintained in the tenant's file at least once annually to meet HUD's documentation requirements and to evidence support of tenants' social security income.
The Authority did not maintain EIV reports in the tenant files. Therefore, no evidence of the EIV report being run exists and support for tenants with Social Security income was insufficient.
Amount of Questioned Costs:
None
Context:
Of the 20 tenant files tested for eligibility, evidence of the EIV report being ran within 120 days of move-in date for the three new admissions tested was not present. In addition, 14 tenant files did not have evidence of an EIV report being ran at least once annually. In addition, H&P was unable to verify social security income for 5 tenants as there were no EIV reports, or social security letters present in the file.
Cause:
The Authority did not utilize adequate internal controls over the HCV program as there is a lack of sufficient documentation. The staff under prior management was under the impression that once the report is ran, it should be destroyed and not stored in the file.
Effect:
Adequate supporting documentation was not maintained in the file and income was not adequately supported by the documentation.
Auditor’s Recommendation:
We recommend the Authority implement controls to run the EIV report within 120 days of move-in for new admissions and at least once annually for all other tenants. The Authority needs to maintain these EIV reports in the tenant files. The Authority should utilize effective controls to ensure relevant documentation is maintained in the HCV program tenant files.
Grantee Response:
The Executive Director agrees with the finding and will follow the Auditor's recommendation.