Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Housing Voucher Cluster
Assistance Listing Number: 14.871
Award Period: 7/1/22-6/30/23
Type of Finding: Significant Deficiency in Internal Control Over Compliance
Criteria: Per 24 CFR section 982.516, for both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or other income-based rent. 24 CFR section 982.516 states that the PHA must reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. 24 CFR sections 5.212 and 5.230 states that the head of household must sign one or more release forms allowing the Authority to obtain information from third parties, as well as a federally prescribed general release form for employment information.
Context: During our testing of 60 files for eligibility requirements, we noted the following in 5 files:
- 1 of 60 files did not have proper support for income included on the HUD-50058.
- 4 of 60 files did not have proper support for assets included on the HUD-50058.
- 1 of 60 files tested did not have properly calculated HAP/TAP due to incorrect income and assets support.
Questioned Costs: $60
Cause: The failure to update the 50058 regarding immaterial asset amounts (no effect on HAP/TTP) was a data entry error. The one file where COLA was calculated incorrectly is not a systemic issue.
Effect: The Authority is not in compliance with HUD regulations.
Repeat Finding: Yes
Recommendation: The Authority should review their processes for eligibility determination and documentation to ensure all information is properly documented and maintained in the files.
View of Responsible Officials: There is no disagreement with this audit finding.