Finding Text
Section 8 Housing Choice Voucher Program - ALN #14.871, Grant Year 2022 & 2023 Condition & Cause:
We reviewed one hundred fifteen (115) Housing Choice Voucher Tenant Files and noted ten (10) files not in compliance, or 8.7%. All errors were income related and consisted of failure to correctly calculate tenant income and failure to obtain third-party verification of income. The income calculation and verification deficiencies were the result of employee error, and failure by the Agency to properly review and correct the errors. We noted that the Agency struggled with hiring, training, and retaining quality staff and operated with several employee vacancies during the fiscal year. We were able to extrapolate the total potential misstatement and found it to be immaterial to the financial statements. However, due to the percentage of files not in compliance, we feel the Agency has a significant deficiency in this area.
Criteria:
The Code of Federal regulations, the Housing Authority's Administrative Plan and specific HUD guidelines in documenting and maintaining Housing Choice Voucher tenant files.
Effect: Improper calculation and documentation of tenant income 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 Agency conduct a thorough tenant file audit of existing tenants to determine whether there are additional deficiencies. We also recommend that the Agency increase their quality control review to adequately monitor compliance with local and federal regulations as it pertains to the maintenance of the tenant files.
Questioned Costs: None
Repeat Finding: Yes
Was sampling statistically valid? Yes
Views of responsible officials: The PHA agrees with the results of the audit and recommendations.