Finding 593136 (2022-002)

Significant Deficiency Repeat Finding
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-03-15

AI Summary

  • Core Issue: There are significant deficiencies in tenant file management for Section 8 housing, leading to non-compliance with HUD requirements.
  • Impacted Requirements: Internal controls and documentation processes for tenant eligibility and recertifications are not being fully followed, risking incorrect rent calculations.
  • Recommended Follow-Up: Implement corrective actions for identified errors, establish a quality control review process, and enhance staff training and management oversight.

Finding Text

2022-002 Eligibility ? Tenant Files Section 8 Housing Voucher Cluster (Section 8): 14.871 Section 8 ? Housing Choice Vouchers 14.879 Mainstream Vouchers Significant Deficiency in Internal Control and Other Matter to be Reported Under the Uniform Guidance Repeat finding from June 30, 2021 as Finding 2021-001 (initially reported June 30, 2010) Condition: Out of a total tenant population of approximately 2,100 tenants, 25 files were selected for testing. Exceptions were noted as follows: ? 1 error where the wrong amount was used to calculate tenant?s wage income. This had no effect on HAP rent. ? 1 error where overtime earnings was not included in calculating tenant?s wage income. This caused HAP rent to decrease by $11. ? 1 error where the utility allowance was calculated incorrectly. This caused the HAP rent to decrease by $61. ? 1 error where the prior year utility allowance schedule was used instead of the current year. This had no effect on HAP rent. ? 1 error where adoption subsidy benefits were calculated incorrectly as well as the amount excluded from income. This decreased HAP rent by $9. ? 1 error where $1,753 in unreimbursed medical expenses was carried forward from the prior year 50058 and file had no support for any medical expenses in current year. This decreased HAP rent by $22 ? 1 error where there was no EIV report in file In addition to the above, we noted the following during our new admissions testing (21 new admissions tested): ? 1 error where there was no signed 214 affidavit in the file for one member of the household Criteria: 24 CFR 982.516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as maintain complete and accurate tenant files. In addition, the Authority?s administrative plan also requires following proper procedures for determination of HAP and documentation in the tenant files. Questioned Costs: None. Effect: The Authority is not in compliance with all of the HUD requirements regarding eligibility and tenant recertifications, which could result in incorrect total tenant payments for rent and HAP payments to landlords. Cause: Procedures to ensure compliance with all of the HUD requirements were not being fully implemented. Recommendation: The Authority should correct the deficiencies noted in the tested files and utilize an ongoing quality control review process on the entire tenant population to ensure proper compliance with the requirements related to tenant eligibility. Ongoing staff training and timely management reviews should be utilized to ensure staff is aware of acceptable procedures. In addition, the Authority should review staffing levels, skill sets and case load. Views of Responsible Officials of the Auditee: The Authority concurs with this finding and will implement review procedures and provide ongoing training to staff.

Categories

HUD Housing Programs Eligibility Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 16688 2022-002
    Significant Deficiency Repeat
  • 16689 2022-003
    Significant Deficiency
  • 16690 2022-002
    Significant Deficiency Repeat
  • 16691 2022-003
    Significant Deficiency
  • 16692 2022-002
    Significant Deficiency Repeat
  • 16693 2022-003
    Significant Deficiency
  • 16694 2022-002
    Significant Deficiency Repeat
  • 16695 2022-003
    Significant Deficiency
  • 593130 2022-002
    Significant Deficiency Repeat
  • 593131 2022-003
    Significant Deficiency
  • 593132 2022-002
    Significant Deficiency Repeat
  • 593133 2022-003
    Significant Deficiency
  • 593134 2022-002
    Significant Deficiency Repeat
  • 593135 2022-003
    Significant Deficiency
  • 593137 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $20.57M
14.872 Public Housing Capital Fund $3.20M
14.850 Public and Indian Housing $3.01M
14.879 Mainstream Vouchers $704,497
14.871 Emergency Housing Voucher $252,344
14.896 Family Self-Sufficiency Program $62,541
14.879 Covid-19 Mainstream Vouchers $15,095