Finding Text
2023-003- ELIGIBILITY – ELIGIBILITY FOR INDIVIDUALS Other Matter/Significant Deficiency
U.S. Department of Housing and Urban Development
CFDA #: 14.871 – Section 8 Housing Choice Voucher Program
CRITERIA
(1) The PHA must conduct a reexamination of family income and composition at least annually.
(2) Except as provided in paragraph (a)(3) of this section, the PHA must obtain and document in the tenant file third-party verification of the following factors, or must document in the tenant file why third-party verification was not available:
(i) Reported family annual income;
(ii) The value of assets;
(iii) Expenses related to deductions from annual income; and
(iv) Other factors that affect the determination of adjusted income.
CONDITION
From our sample of 25 participants in the Housing Choice Voucher Program, we identified 5 instances of missing verifications or the verifications obtained did not agree to the amounts reported on the form 50058.
CAUSE
The Authority's system of third-party verifications of tenant’s income and choice of rent was not sufficient.
EFFECT
The Authority did not implement procedures that ensured proper verification and calculation of income, expenses, and deductions are used in calculating annual income, adjusted income, and thereby rent.
QUESTIONED COSTS
None Identified.
CONTEXT
The Authority administers 404 vouchers in the Housing Choice Voucher Program. We selected a sample of 25 participants. This was not a statistically valid sample.
REPEAT FINDING
Not a repeat finding.
RECOMMENDATION
We recommend policies and procedures are strengthened to ensure all proper documentation and annual recertification are maintained in all tenant files to document eligibility. In addition, the PHA should provide training to program staff.
AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
See Corrective Action Plan.