Finding Text
2023-002 – ELIGIBILITY – ELIGIBILITY FOR INDIVIDUALS
Other Matter/Significant Deficiency
U.S. Department of Housing and Urban Development
ALN 14.871 – Section 8 Housing Choice Vouchers
CRITERIA
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. (2 CFR 982.516 (a))
(1) As a condition of admission to or continued assistance under the program, the PHA shall require the family head, and such other family members as the PHA designates, to execute a HUD-approved release and consent form (2 CFR 982.516(g))
CONDITION
As a result of our testing, we identified the following:
• Two instances of incorrect or incomplete verifications of income, assets, or deductions.
• Two instances of incorrect payment standards used.
• Two instances of utility allowance miscalculations.
• One certification that was not completed timely.
CAUSE
The Authority's system of obtaining and documenting third-party verifications of tenant’s income, assets, or deductions was not sufficient.
EFFECT
The Authority did obtain proper verification and calculation of income, expenses, and deductions are used in calculating annual income, adjusted income, and thereby housing assistance payments.
QUESTIONED COSTS
None Noted.
CONTEXT
The Authority leased approximately 320 vouchers through the Housing Choice Voucher Program throughout the year. We selected a sample of 25 participant files. 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.
AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
See Corrective Action Plan.
SECTION IV – SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
No prior audit findings.