Finding 525695 (2024-002)

2024-002: Section 8 Housing Examination of Family Income and Composition Criteria – Per requirement by the United States Department of Housing and Urban Development, Section 8 Housing program participants should have their income and family composition examined by the public local housing authority every 12 months. Condition – During the testing of eligibility for the program, it was noted that documentation of family income and composition could not be provided for one program participant. Effect – HUD compliance procedures were not properly followed. Cause – Record retention procedures were not properly followed as designed by the public housing authority. Recommendation – We recommend the public housing authority design and implement internal controls to have the Section 8 Housing program participants income and family composition examination every 12 months. Additionally, such examination should be documented and retained in the Section 8 Housing program participant files. Management’s Response: We agree with the auditors’ recommendations, and the following action will be taken to improve the situation. The public housing authority will review procedures around record retention and adjust as necessary to ensure compliance with HUD requirements.