Finding Text
2023-001 - Eligibilty
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program: Housing Voucher Cluster
FALN: 14.871/14.879
Federal Awared Identification Number and Year: MD023, 2023
Award Period: 1/1/2023 - 12/31/23
Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters
Criteria or specific requirement: For both family income examinations and reexaminations, the PHA must 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 (24 CFR section 982.516)
Condition: The Commission did not follow it policies and procedures designed to ensure compliance with eligibility requirements.
Questioned costs: Unknown
Context: Testing of 40 HCVP files indicated that 1 file had incorrect income used to calculate tenant rent and HAP.
Cause: The Commission must verify income annually through third party verification and perform a calculation. The Commission did not complete this correctly.
Effect: The Commission is not in compliance with HUD requirements. This could have an impact on HAP calculations.
Recommendation: We recommend that the Commission review its process for collecting third party income support to ensure the accurate data is used as part of the rent and HAP calculation.
Views of responsible officials: There is no disagreement with the audit finding.