Finding Text
Finding 2024-022
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.871/14.879 Housing Voucher Cluster
Material Weakness in Internal Controls over Compliance for Eligibility
Repeat Finding: Yes; 2023-003
Condition:
• For 13 out of 60 beneficiaries selected for eligibility, the redetermination did not occur within the biennial time period.
• For 2 out of 60 beneficiaries selected for eligibility, we did not observe 3rd party verification of reported income.
Criteria
For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516).
Questioned Costs
Unknown.
Cause
The Authority did not sufficiently monitor controls to ensure compliance with eligibility requirements.
Effect
The Authority is not in compliance with federal regulations regarding eligibility. Tenant rent or HAP may have been miscalculated due to using incorrect information in the recalculations. Tenant recertifications were not shown to be performed on a timely basis.
Recommendation
We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in this report.
Auditor’s Conclusion:
Finding remains as stated.