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 calculated incorrectly resulting in an incorrect HAP amount
paid. Additionally, we noted one tenant file in which proof of citizenship was not maintained and
two tenant files that did not have a signed lease agreement by the required parties.
Questioned Costs
None.
Context
We reviewed a sample of 40 of the Authority’s 491 tenant files for eligibility requirements.
Effect
HAP payments could have been paid to a tenant who was not eligible to receive the payments
or tenants may not be provided the proper housing assistance in accordance with their income
and eligibility factors.
Cause
Lack of controls and oversight during the year.
Repeat Finding
2022-007
Recommendation
We recommend the Authority reviews their procedures of tenant file reviews 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.