Finding Text
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster
Assistance Listing Number: 14.871/14.879
Federal Award Identification Number and Year: MO002VO - 2023 Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Eligibility
Type of Finding: • Significant Deficiency in Internal Control over Compliance Type of Finding:Other Matters Criteria or specific requirement: As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516).
For both family income examinations and reexaminations, 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).
The Authority must determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516).
Condition: The Authority was unable to provide adequate supporting documentation and evidence of internal control over compliance for eligibility requirements.
Questioned costs: Unable to determine.
Context: Exceptions noted in 3 out of 60 files tested for eligibility requirements. The Authority was unable to provide documentation for releases of information for 1 file. The Authority was unable to provide supporting documentation that 2 tenants were recertified timely. Cause: The Authority did not maintain supporting documentation within the tenant file and did not complete all recertifications in accordance with eligibility requirements.
Effect: The Authority is not in compliance with eligibility requirements.
Repeat Finding: Yes, finding 2022-001.
Recommendation: We recommend that the Authority implements controls to ensure the tenant files include all required documentation at the time of recertification.
Views of responsible officials: There is no disagreement with the audit finding.