Finding Text
Significant Deficiency
2023-003 Eligibility
Federal Program – U.S. Department of Housing and Urban Development AL #14.871
Grant Award No. – MN107-Housing Choice Voucher
Federal Award Year – 2023
Criteria or Specific Requirement – The Authority must determine income eligibility and
calculate the tenant’s rent payment and housing assistance payment using the documentation
from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601
et seq.) (24 CFR sections 982.201, 982.515, and 982.516).
Condition – During our review of tenant files, one tenant’s verified income was incorrectly
calculated and entered into the rent determination worksheet, resulting in the tenant’s rent and
HAP portion to be miscalculated. The error noted remained undetected after completion of a
quality control worksheet, which functions as the Authority’s primary internal review process to
ensure an annual certification, at minimum, was performed and appropriate tenant information is
documented.
Context – We reviewed a sample of 13 of the Authority's 125 tenant files for compliance with
program eligibility requirements.
Effect – Tenants may not be provided the proper housing assistance in accordance with their
income and eligibility factors.
Cause – Lack of controls and oversight during the year.
Repeat Finding – This is not a repeat finding.
Recommendation – We recommend the Authority follow its policy and ensure its staff
members are properly trained on calculating and applying the proper assistance to tenants
receiving vouchers. We also emphasize performing a quality review over its tenant files to
ensure all income and eligibility factors are properly determined.
Views of Responsible Officials and Planned Corrective Actions – The Authority recognizes
the detection failure and will determine the best steps to implement in order to create a more
robust and effective review process.