Finding Text
2023-002 Eligibility
Housing Voucher Cluster
Significant Deficiency in Internal Control
Other matter required to be reported in accordance with Uniform Guidance
Repeated in part from 2022 audit (see prior year Finding No. 2022-003)
Condition: Out of an approximate population of 3,500 tenants in the Housing Voucher Cluster
program, 44 tenant files were tested and the following deficiencies were noted:
•2 files were late annual recertifications due to not receiving an annual recertification in the
previous year;
•6 tenants had a delay in annual recertifications in 2023 (ranging from 1 - 5 months);
•4 tenants had incorrect income calculations;
•3 tenants had incorrect utility allowance calculations; and,
•1 tenant had an unsupported dependent.
Context: The auditor randomly selected 44 tenant files from the program’s population, which we
consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to
ensure that proper procedures are being followed and that the Authority is in compliance with HUD
requirements regarding timely, complete, and accurate tenant files.
Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 require internal controls to be in
place to ensure proper procedures are being followed in compliance with HUD requirements
regarding timely, complete, and accurate tenant files.
Cause: The Authority experienced staffing and operational challenges throughout the COVID-19
pandemic that continued into fiscal year 2023. Additionally, the Authority has had difficulty obtaining
timely and accurate information from a significant portion of the voucher holders within the program.
Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could
result in the incorrect amount of rental assistance provided.
Auditor’s Recommendations: The Authority should consider reevaluating their established
procedures and controls currently in place to ensure full compliance in regards to eligibility and the
timeliness of recertifications The Authority needs to correct the deficiencies noted in the tested files
and consider the impact to the rest of the population of tenant files that were not selected as part of
the auditor’s sample.
View of Responsible Officials: See Corrective Action Plan.