Finding 582177 (2023-001)

Significant Deficiency
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2023-12-20
Audit: 7804
Organization: Somerville Housing Authority (MA)

AI Summary

  • Core Issue: 10.8% of Housing Choice Voucher tenant files reviewed were noncompliant, with missing documentation and outdated income verification.
  • Impacted Requirements: Noncompliance with federal regulations and the Authority’s Administrative Plan regarding tenant file documentation.
  • Recommended Follow-Up: Conduct a file audit of existing tenants and implement a quality control review to ensure compliance with documentation requirements.

Finding Text

Finding 2023-001 – Housing Choice Voucher Tenant Files – Eligibility – Rent Calculations Noncompliance & Significant Deficiency Section 8 Housing Choice Voucher Cluster – ALNs #14.871 and #14.879 Condition & Cause: We reviewed sixty-five (65) Housing Choice Voucher tenant files and noted seven (7) files not in compliance, or 10.8%. For three (3) of the files, we noted that the reexaminations in review were not maintained with the tenant documentation. Upon further inquiry, the Authority was unable to provide the documentation for the missing actions. The HAP paid during the fiscal year from the three (3) undocumented actions is the basis for the questioned costs. For the remaining four (4) files, we noted that the verification of income was either missing or outdated. We noted that the Authority experienced high staff turnover and has had difficulty in hiring and retaining employees. As of August 2023, subsequent to year-end, the Authority has contracted with an outside vendor to assist with tenant certifications. Criteria: The Code of Federal Regulations, the Authority’s Administrative Plan, and specific HUD guidelines in documenting and maintaining Housing Choice Voucher tenant files. Effect: Improper verification and documentation of tenant reexaminations can result in misstatement of the financial statements, improper calculation of HAP subsidy, and noncompliance with Federal provisions governing the Housing Choice Voucher program. Recommendation: We recommend that the Authority conduct a file audit of existing tenants to determine the extent of the deficiencies. We also recommend that the Authority implement a quality control review to adequately monitor compliance with regulations pertaining to the maintenance of tenant files. Questioned Costs: $46,655 Repeat Finding: No Was sampling statistically valid? Yes

Categories

Questioned Costs HUD Housing Programs Eligibility Significant Deficiency Special Tests & Provisions

Other Findings in this Audit

  • 5735 2023-001
    Significant Deficiency
  • 5736 2023-001
    Significant Deficiency
  • 582178 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $24.33M
14.182 Section 8 New Construction and Substantial Rehabilitation $3.06M
14.850 Public and Indian Housing $2.57M
14.879 Mainstream Vouchers $2.03M
14.872 Public Housing Capital Fund $1.43M
14.896 Family Self-Sufficiency Program $143,991
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $128,340
14.870 Resident Opportunity and Supportive Services - Service Coordinators $79,200