Finding Text
Finding 2021-002: Tenant File Maintenance (Material Weakness)
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Federal Assistance Listing Number: 14.871
Compliance Requirement: Eligibility
Criteria: In accordance with various subsections of 24 CFR Section 982, the Authority is required to:
obtain and review documentation supporting United States of America citizenship;
execute release and consent form approved by the Authority or the Department of Housing and
Urban Development ("HUD") authorizing any depository or private source of income, or any
Federal, State, or local agency, to furnish or release to HUD such information as the Authority or
HUD determines to be necessary; and
verify income listed on the HUD Form 50058.
The Authority is required to have controls in place to ensure recertifications are properly and timely
completed.
Condition: The Authority did not:
retain documentation supporting United States of America citizenship;
obtain proper authorization from tenants to release necessary information; and
obtain supporting documentation for the income listed on the HUD Form 50058.
The control over review and approval of the annual recertifications was not consistently applied.
Context: Of the 40 selections made, the Authority did not:
retain documentation supporting United States of America citizenship for 3 selections;
obtain proper authorization from tenants to release necessary information for 5 selections; and
obtain supporting documentation for the income listed on the HUD Form 50058 for 4 selections.
In reviewing the tenant files selected, review and approval of the annual recertifications was not evident
in some files.
Effect: The Authority was unable to demonstrate:
United States of America citizenship;
proper authorization from tenants to release necessary information;
the income listed on the HUD Form 50058 was accurate.
Recertifications could be improperly completed or missed altogether.
Cause: The Authority's internal controls in place did not prevent the Authority from missing required
documentation, authorization, and income support in its tenant files. The control over review and
approval of the annual recertifications was not properly implemented.
Repeat Finding: This is not a repeat finding.
Questioned Costs: $26,811
Auditor's Recommendation: The Authority should review and enhance its internal controls to ensure:
management obtains and reviews documentation supporting United States of America citizenship;
tenants provide release forms prior to obtaining necessary documentation;
management verifies income listed on the HUD Form 50058; and
recertifications are consistently reviewed and approved.
Views of Responsible Officials: The Authority specialist responsible for file maintenance and
recertifications during fiscal year 2021 is no longer with the Agency. The Authority has experienced
staff now in place to perform these services. The Authority will revisit our policy and procedures over
recertification and file maintenance to ensure documentation is maintained and is in compliance with
HUD regulations.