Finding Text
2024-001 – ALN 14.850 – Public Housing Operating Fund – Eligibility
Condition and Criteria:
During our audit, it was determined that internal control deficiencies over compliance
existed over the Authority’s Public Housing Operating Fund program eligibility
determination process. The Authority's staff had inadequate internal controls over the
Authority’s Public Housing Operating Fund tenant eligibility process which has led
to incomplete and inaccurate eligibility documentation. Within the sixteen tenant files
selected and tested for compliance with laws and regulations, ten files lacked
supporting documentation for income and eligibility determination. Five of the
sixteen tenant files selected did not have medical and/or income incorrectly
computed.
In accordance with HUD eligibility compliance requirement, Uniform Guidance
Single Audit compliance requires that for tenant eligibility, tenant files include
certain information and documentation that is both accurate and complete such as to
obtain and document third-party verification of annual income and other factors that
affect the determination of adjusted income or income-based rent, and then properly
calculate the rent payment using this documentation. Per 24 CFR sections 5.230,
5.609, & 982.516, tenants are required to provide necessary information,
documentation, and releases for the Authority to verify income eligibility.
Amount of Questioned Costs.
None.
Context: Within the sixteen tenant files selected and tested for compliance with laws and
regulations, ten files lacked supporting documentation for income and eligibility
determination. Five of the sixteen tenant files selected did not have medical and/or
income incorrectly computed.
Cause:
The Authority did not have proper quality control procedures in place over
monitoring required documentation in tenant files and the retention of annual and
interim re-certifications were not operating effectively. The Authority lacked a clear
understanding of HUD Low Rent eligibility requirements relating to the EIV system
and HUD documentation requirements.
Effect:
The Authority is not in compliance with HUD requirements over documentation in
tenant files.
Auditor’s Recommendation:
In general, we recommend that the Authority review documentation requirements
regarding tenant files. The Authority should also begin performing quality control
procedures including internal audits of tenant files to ensure that these files are
accurate and complete. We also recommend that Authority staff to obtain training
through related training seminars and classes and to monitor HUD news and notices
for any new guidance or changed to the public housing industry.
Grantee Response:
Current management acknowledges the finding and is following the auditor’s
recommendations.