Finding 561287 (2023-004)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2025-05-22

AI Summary

  • Core Issue: Incomplete documentation of tenant income eligibility for the Housing Choice Voucher Program, leading to potential non-compliance.
  • Impacted Requirements: Compliance with HUD regulations regarding tenant income verification and eligibility documentation.
  • Recommended Follow-Up: Focus on recruiting and training staff on HUD requirements and streamline processes to enhance compliance and efficiency.

Finding Text

2023‐004 Eligibility Controls and Compliance Management Views We agree with this finding and have outlined our plan of action in our corrective action plan. Questioned Costs The exact monetary impact needs further investigation to determine the amount for the period of non‐compliance. Cause The failure to meet compliance requirements noted above can be attributed to a combination of factors, including major staff turnover, which led to a loss of institutional knowledge and expertise critical for the preparation and maintain the required documentation in tenant files. Effect Compliance with income limits and eligibility could not be demonstrated for sampled tenants. Therefore, ineligible individuals may be receiving HAP assistance and /or HAP is being incorrectly Recommendations It is recommended that the Authority: (1) Prioritize the recruitment and training of new staff to fill critical roles, ensuring they are well‐versed in HUD requirements and (2) Revise and streamline internal processes to improve efficiency and reliability in meeting HUD's requirements for determing tenant eligibility. Criteria As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516) Condition Incomplete documentation of tenant’s income eligibility for participation in the Housing Choice Voucher Program. During the sampling of 40 tenant files we noted: (1) 29 did not include utility allowance calculation; (2) 9 50058 forms did not agree with the housing assistance payments made to landlords; (3) 22 tenant rents did not fall between 90% and 110% of the HUD FMR for the areas. Context The Authority manages over 600 Housing Choice Vouchers and 600 Port‐In Voucher during the year. We sampled 40 tenant files for multiple compliance requirements.Questioned Costs The exact monetary impact needs further investigation to determine the amount for the period of non‐compliance. Questioned Costs The exact monetary impact needs further investigation to determine the amount for the period of non‐compliance. Cause The failure to meet compliance requirements noted above can be attributed to a combination of factors, including major staff turnover, which led to a loss of institutional knowledge and expertise critical for the preparation and maintain the required documentation in tenant files. Effect Compliance with income limits and eligibility could not be demonstrated for sampled tenants. Therefore, ineligible individuals may be receiving HAP assistance and /or HAP is being incorrectly Recommendations It is recommended that the Authority: (1) Prioritize the recruitment and training of new staff to fill critical roles, ensuring they are well‐versed in HUD requirements and (2) Revise and streamline internal processes to improve efficiency and reliability in meeting HUD's requirements for determing tenant eligibility. Questioned Costs The exact monetary impact needs further investigation to determine the amount for the period of non‐compliance. Management Views We agree with this finding and have outlined our plan of action in our corrective action plan.

Categories

HUD Housing Programs Eligibility

Other Findings in this Audit

  • 561277 2023-002
    Significant Deficiency Repeat
  • 561278 2023-003
    Significant Deficiency Repeat
  • 561279 2023-004
    Material Weakness
  • 561280 2023-005
    Material Weakness
  • 561281 2023-002
    Significant Deficiency Repeat
  • 561282 2023-003
    Significant Deficiency Repeat
  • 561283 2023-004
    Material Weakness
  • 561284 2023-005
    Material Weakness
  • 561285 2023-002
    Significant Deficiency Repeat
  • 561286 2023-003
    Significant Deficiency Repeat
  • 561288 2023-005
    Material Weakness
  • 1137719 2023-002
    Significant Deficiency Repeat
  • 1137720 2023-003
    Significant Deficiency Repeat
  • 1137721 2023-004
    Material Weakness
  • 1137722 2023-005
    Material Weakness
  • 1137723 2023-002
    Significant Deficiency Repeat
  • 1137724 2023-003
    Significant Deficiency Repeat
  • 1137725 2023-004
    Material Weakness
  • 1137726 2023-005
    Material Weakness
  • 1137727 2023-002
    Significant Deficiency Repeat
  • 1137728 2023-003
    Significant Deficiency Repeat
  • 1137729 2023-004
    Material Weakness
  • 1137730 2023-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.55M
14.879 Mainstream Vouchers $1.25M