Finding 582838 (2023-004)

Significant Deficiency
Requirement
EN
Questioned Costs
-
Year
2023
Accepted
2023-12-22
Audit: 8316
Auditor: Rbt CPAS

AI Summary

  • Core Issue: Missing documentation in tenant files, including incomplete or absent forms, raises compliance concerns.
  • Impacted Requirements: Compliance with HUD regulations on tenant eligibility and documentation is not being met, risking funding loss.
  • Recommended Follow-up: Implement a checklist for Tenant Housing Representatives to ensure all compliance steps are documented during recertification.

Finding Text

2023-004 – Tenant File Review U.S. Department of Housing and Urban Development 14.871 – Section 8 Housing Choice Vouchers/Housing Voucher Cluster Condition: During review of tenant files, RBT noted that of the 25 tenant files tested, one file was missing a signature on form HUD-9886, one file was missing form HUD-9886 entirely, and one tenant file could not be located. For the file that could not be located, form HUD-9886, form HUD-50058, reasonable rent assessment, utility allowance determination, and HQS inspection was all missing. RBT also noted that the Authority was not appropriately documenting the controls over Eligibility, Reasonable Rent, Utility Allowance, and HQS Inspections. Criteria: As a condition of admission or continued occupancy, PHAs must require the tenant and applicable family members to provide necessary information and releases for the PHA to verify income eligibility and obtain and document the family third-party verification of reported family income during the annual reexamination of family income or during move-in. Additionally, as a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority does not have a central, uniform location to document the controls in place over Eligibility, Reasonable Rent, Utility Allowance, and HQS Inspections. Effect: Potential loss of funding due to noncompliance or additional noncompliance if a control is missed. Questioned Costs: None identified. Perspective: See Condition description above. Repeat Finding: Not a repeat finding. Recommendation: We recommend that the Authority establish a checklist for the Tenant Housing Representatives to use during the recertification process to ensure all compliance requirements are met. The checklist should be signed or initialed by the representative and maintained in the tenant’s file. This checklist will serve as documentation that all compliance requirements were verified for the tenant. Auditee’s Response: See corrective action plan.

Categories

HUD Housing Programs Eligibility Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 6396 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $5.09M
14.850 Public and Indian Housing $1.31M
14.872 Public Housing Capital Fund $1.25M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $271,722