Finding Text
2022-004 – Tenant Files
U.S. Department of Housing and Urban Development
14.871 – Section 8 Housing Choice Vouchers Cluster
E. Eligibility and N. Special Tests and Provisions – Significant Deficiency and Compliance Finding
Condition: During review of the Housing Choice Voucher tenant files, RBT noted incomplete file documentation. RBT also noted that the Authority was not appropriately documenting the controls over Eligibility, Reasonable Rent, Utility Allowance, and HQS Inspections.
Criteria: As a condition of admission or continued occupancy, PHAs must require the tenant and applicable family members to provide necessary information and releases for the PHA to verify income eligibility and obtain and document the family third-party verification of reported family income during annual reexamination of family income or during move-in. Additionally, as a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements.
Cause: The Authority does not have a central, uniform location to document the controls in place over Eligibility, Reasonable Rent, Utility Allowance and HQS Inspections.
Effect: Potential loss of funding due to noncompliance or additional noncompliance if a control is missed.
Questioned Costs: None identified.
Perspective: Of the 25 tenant files tested, 2 files had incomplete forms HUD-9886, 1 file had no EIV third-party income verification, 1 file had an incomplete HQS inspection, and all 25 tenant files tested were missing documentation of internal controls.
Repeat Finding: Not a repeat finding.
Recommendation: We recommend that the Authority establish a checklist for the Tenant Housing Representative to use during the recertification process to ensure all compliance requirements are met. The checklist should be signed or initialed by the representative and maintained in the tenant’s file. This checklist will serve as documentation that all compliance requirements were verified for the tenant.
Auditee’s Response: See corrective action plan.