Finding 508405 (2024-003)

Significant Deficiency 2024-003 Eligibility Federal Program – U.S. Department of Housing and Urban Development AL #14.871 Grant Award No. – MN107-Housing Choice Voucher Federal Award Year – 2024 Criteria or Specific Requirement – The Authority must determine income eligibility and calculate the tenant’s rent payment and housing assistance 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 – During our review of tenant files, two tenants had no signed lease documentation. The error noted remained undetected after completion of a quality control worksheet, which functions as the Authority’s primary internal review process to ensure an annual certification, at minimum, was performed and appropriate tenant information is documented. Context – We reviewed a sample of 13 of the Authority's 123 tenant files for compliance with program eligibility requirements. Effect – Tenant may have misunderstanding of agreed upon rent and regulations. Cause – Lack of controls and oversight during the year. Repeat Finding – This is not a repeat finding. Recommendation – We recommend the Authority follow its policy and includes a signed lease step on their quality control worksheet. Views of Responsible Officials and Planned Corrective Actions – The Authority recognizes the detection failure and plans to implement auditor’s recommendation.