Finding Text
Finding 2023-003 – Low-Income Public Housing – ALN 14.850 – Tenant Files – Eligibility – Internal Control over Tenant Files – Noncompliance and Significant Deficiency
Condition & Cause: Our review of seventy (70) Low Income Public Housing tenant files revealed that there was a total of seven (7) annual recertifications completed past due, which represent 10% of the total files examined. Per 24 CFR 960.257(a)(1), “the PHA must conduct a reexamination of family income and composition at least annually.” These reexaminations not completed annually are reported as an audit finding for noncompliance and a significant deficiency.
Criteria: The Code of Federal Regulations, the Housing Authority’s Admissions and Continued Occupancy Policy, and specific HUD guidelines in documenting and maintaining the Low-Income Public Housing tenant files.
Recommendation: We recommend that the Agency determine the number of outstanding annual reexaminations that are past due in the Low-Income Public Housing program and complete them. We also recommend that the Agency enforce their ACOP and Federal Regulations regarding systematically performing reconciliations.
Effect: Failure to maintain compliance can result in loss of funding for grants and other programs which require no noncompliance. Noncompliance can also lead to a misstatement of program revenue, and the corresponding appropriation needs of the Agency.
Questioned Costs: None
Repeat Finding: No
Was sampling statistically valid? Yes
Views of responsible officials: The PHA agrees with the results of the audit and recommendations.