Finding 520768 (2022-007)

Significant Deficiency Repeat Finding
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2025-01-30

AI Summary

  • Core Issue: One tenant's rent payment was incorrectly calculated due to an error in the documentation process.
  • Impacted Requirements: Compliance with income eligibility verification and documentation standards as outlined in 24 CFR regulations.
  • Recommended Follow-Up: Implement a second-party review process for tenant files to ensure accuracy in calculations and documentation.

Finding Text

Federal Program: U.S. Department of Housing and Urban Development AL #14.871 - Significant Deficiency. Criteria: Determine income eligibility and calculate the tenant's rent 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). Additionally, as a condition of admission or continued occupancy, the Authority must require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Condition: We tested compliance with the Authority's eligibility in 40 tenant files and found that one tenant's housing assistance payment was understated due to the Authority using an incorrect rent payment. Additionally, we noted one tenant file in which the tenant's Social Security Number was not documented. Questioned Costs: None. Context: We reviewed a sample of 40 of the Authority's 472 tenant files for eligibility requirements. Effect: During our review of tenant files, one tenant's verified income was incorrectly calculated and entered into the rent determination worksheet, resulting in the tenant's rent and HAP portion to be miscalculated. 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. Additionally, HAP payments could have been paid to a tenant who was not eligible to receive the payments. Cause: Lack of controls and oversight during the year. Repeat Finding: Not a repeat finding. Recommendation: We recommend there be a second party review of the file to ensure all calculations are correct and appropriate documents are included. Views of Responsible Officials: Management recognizes the deficiency and plans to implement the auditor's recommendation.

Corrective Action Plan

The Authority will review its policies and procedures over program compliance requirements and continue to provide occupancy training to staff to prevent future exceptions

Categories

HUD Housing Programs Eligibility Significant Deficiency

Other Findings in this Audit

  • 520766 2022-005
    Material Weakness
  • 520767 2022-006
    Significant Deficiency
  • 520769 2022-008
    Significant Deficiency Repeat
  • 520770 2022-009
    Significant Deficiency Repeat
  • 520771 2022-005
    Material Weakness
  • 520772 2022-006
    Significant Deficiency
  • 520773 2022-007
    Significant Deficiency Repeat
  • 520774 2022-008
    Significant Deficiency Repeat
  • 520775 2022-009
    Significant Deficiency Repeat
  • 1097208 2022-005
    Material Weakness
  • 1097209 2022-006
    Significant Deficiency
  • 1097210 2022-007
    Significant Deficiency Repeat
  • 1097211 2022-008
    Significant Deficiency Repeat
  • 1097212 2022-009
    Significant Deficiency Repeat
  • 1097213 2022-005
    Material Weakness
  • 1097214 2022-006
    Significant Deficiency
  • 1097215 2022-007
    Significant Deficiency Repeat
  • 1097216 2022-008
    Significant Deficiency Repeat
  • 1097217 2022-009
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $2.77M
14.850 Public and Indian Housing $516,168
14.879 Mainstream Vouchers $296,608
14.872 Public Housing Capital Fund $182,158