Finding 500424 (2023-001)

Significant Deficiency
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2024-09-30

AI Summary

  • Core Issue: Missing income verification documentation in tenant files raises concerns about eligibility and proper rent calculations.
  • Impacted Requirements: The Authority must ensure all tenant documentation is complete and eligibility is assessed annually or with income changes.
  • Recommended Follow-Up: Update internal control policies to include a review process or checklist for verifying tenant eligibility and HAP amounts.

Finding Text

FINDING NO. CONTROL DEFICIENCIES 2023-001 Eligibility Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Choice Voucher Cluster FAL Number: 14.871 Award Period: January 1, 2023 through December 31, 2023 Compliance Requirement: Eligibility Type of Finding: Internal Control and Compliance, Significant Deficiency Criteria: The Authority is required to have documents from the tenant to provide necessary information/documentation, third party verification of asset valuations, release of information documentation, and income eligibility and calculations of tenants rent from asset/income documentation. The Authority is required to determine eligibility at least annually or if the tenant's income changes during the year. Condition: As part of our testing, we found three tenant files that were missing income verification documentation in the tenant files to verify that the tenant was eligible and HAP and that the rent amount was properly calculated. Questioned Costs: Not determined Cause: The Authority did not perform review procedures properly designed to ensure that all the documentation was in the tenant's file to determine if they were eligible and that the tenant rent/HAP payment was correct. Effect: HAP payments to landlords could be improperly calculated and tenants not eligible could be included in the program. Repeat Finding: No Recommendation: We recommend the Authority to update their internal control policies to require a review of the tenant files from another qualified personel or have a checklist to be filled out in a timely manner when checking eligibility/HAP amounts to landlords. Views of responsible officials: There is no disagreements with audit finding

Corrective Action Plan

The Authority will update their internal control policies over eligibility to require a review of the tenant file from another qualified personel and have a checklist to ensure compliance.

Categories

Questioned Costs Eligibility HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1076866 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.10M
14.872 Public Housing Capital Fund $209,561
14.850 Public Housing Operating Fund $155,446
14.870 Resident Opportunity and Supportive Services - Service Coordinators $52,199