Finding Text
Criteria or specific requirement: (1) According to the Authority’s internal procedures, case managers are to complete a checklist to keep in tenant file any time a new computation is created, be that for an annual, interim, or special reexamination. This must be signed and dated by the completing caseworker.
(2) According to the compliance supplement for the Housing Voucher Cluster, "The PHA must do the following: (1) As a condition of admission or continued occupancy, 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). Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification (24 CFR section 982.516).
Condition: The Authority did not have adequate internal controls designed to ensure HCV eligibility requirements were being met.
Questioned costs: $20,820
Context: During the testing of the HCV tenant files, certain eligibility compliance deficiencies were noted in 3 of 46 files:
(1) 2 of 40 sampled tenant files did not show evidence of an internal control checklist completed by the caseworker.
(2) 1 of 40 tenants was not properly terminated. Tenant did not complete 2023 annual review and was sent to be terminated. Termination was not followed through on until FY 2025.
Cause: Repeated change in staff left the file overlooked and the termination incomplete. The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as its administrative policy.
Effect: The Authority is not in compliance with federal regulations regarding the recertification of household circumstances within 12 months. The Authority is also not in compliance with its own administrative policy on the HCV program.
Recommendation: We recommend that the Authority review the controls in place to ensure that no tenants are overlooked, even when the original case manager is no longer an employee of the Authority.
Views of responsible officials: There is no disagreement with the audit finding.