Finding Text
Condition:
1) Housing assistance payments and tenant payments for three of 25 client files selected for testing were calculated incorrectly due to errors in the amounts used for income.
2) One out of 25 client files selected for testing was missing supporting documentation for a disability deduction taken on Form HUD-50058. In addition, there was missing supporting documentation for the asset value reported on Form HUD-50058 on one of the 25 client files selected for testing.
3) One of 25 client files selected for testing was missing an Enterprise Income Verification report.
Criteria: Organizations operating the Housing Voucher Cluster Program are required to maintain sufficient internal controls to ensure compliance with eligibility requirements.
Effect: The housing assistance payments and tenant payments noted above were not made in accordance with program regulations.
Cause: Community Teamwork, Inc.’s internal controls were not operating effectively enough to prevent or detect incorrect calculations of housing assistance payments and tenant payments.
Auditor's Recommendation: Community Teamwork, Inc. provide additional staff training and implement additional internal control procedures to ensure that required documentation is obtained and rental assistance payments made on behalf of the clients participating in the program are made in accordance with program regulations.
Views of Responsible Officials and Planned Corrective Action:
Community Teamwork, Inc. has enhanced the verification process by introducing mandatory second-level reviews for all income and asset calculations for new employees. An extensive staff training program has been initiated that focuses on HUD and EOHLC requirements, with specific attention to the verification and documentation procedures. New employees will undergo a tiered review process where the new employees’ work will be audited by experienced staff until they have met the error compliance threshold. In addition, Community Teamwork, Inc. has updated their internal training protocols to focus on acceptable verification methods, accurate income reporting, and the correct completion of form HUD-50058.