Finding Text
FINDING NUMBER 2023-006
FEDERAL PROGRAM HOUSING VOUCHER CLUSTER:
SECTION 8 HOUSING CHOICE VOUCHERS
(ASSISTANCE LISTING NUMBER 14.871)
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
TYPE OF FINDING MATERIAL WEAKNESS AND INSTANCE OF NONCOMPLIANCE
COMPLIANCE
REQUIREMENT ELIGIBILITY
CONDITION During the Eligibility test, twenty (25) participants’ files were examined related to the reexamination process, and noted the following conditions:
a. In seven (7) participants’ files, the Enterprise Income Verification (EIV) report corresponding to the annual reexamination selected for evaluation, was not available for my review.
b. In three (3) participants’ files, the housing assistance payment was incorrect due to errors in the determination of the family income (2 files) or applicable deductions (1 file) used in the calculation.
c. Four (4) participants’ files did not include the certificate of criminal record and one (1) participant file did not include the certification of the verification in the sex offenders register for one or more adult family members.
CRITERIA Code of Federal Regulation 24, Section 982.516 (a) (1) states that the PHA must conduct a reexamination of family income and composition at least annually; (2) the PHA must obtain and document in the tenant file third party verification of the following factors or must document in the file why third party verification was not available: (A) reported family annual income; (B) the value of assets; (C) expenses related to deductions from annual income; and (D) other factors that affects the determination of adjusted income.
In accordance with the regulations at 24 CFR 5.856 and 5.905, O/As and PHAs must perform necessary criminal history background checks to determine if an applicant, or a member of an applicant’s household, is subject to a lifetime registration requirement under a state sex offender registration program. This check must be carried out with respects to the State in which the housing is located and with respect to States where the applicant and members of the applicant’s household are known to have resided.
CAUSE The Program’s internal controls and procedures failed to ensure that the reexamination and HAP determination processes were performed according to program requirements and guidelines. Also, the internal controls did not ensure that all the required documentation necessary for the reexamination process was obtained from the participants.
EFFECT The lack of monitoring and adequate supporting documentation during the reexamination processes could lead to the approval and disbursement of improper amounts and the approval of benefits to people that do not qualify.
RECOMMENDATION I recommend management to continue strengthening its internal controls and procedures to ensure that the re-examination and HAP determination processes are performed according to program requirements and guidelines. Also, management must reinforce the internal controls to ensure that all the required documentation necessary for the reexamination process is obtained in a timely manner.
QUESTIONED COSTS None
PRIOR YEAR FINDING A similar finding was presented in prior year Schedule of Findings and Questioned Costs (2022-006)
VIEWS OF RESPONSIBLE
OFFICIALS AND PLANNED
CORRECTIVE ACTION Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure that the re-examination and HAP determination processes will be performed according to program requirements and guidelines, and to obtain in a timely manner all the required documentation for each reexamination executed.