Finding Text
SECTION III ? FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding number: 2022-005 Federal Program: Housing Voucher Cluster - 14.871 Section 8 Housing Choice Vouchers Category: Compliance and Internal Control ? Eligibility Criteria or specific requirement: 24 CFR part 5, subpart F sections 5.601, 982.201, 982.515 and 982.516 determine whether income eligibility and calculate the tenant?s rent payment were made using the documentation from a third-party verification. Condition: In testing compliance with the eligibility requirements related to income-eligibility and tenant?s rent payment, we noticed the following from the sample of sixty (60) files: ? In one (1) instance the participant?s pay stubs used as evidence of the income determination were for salaries received in 2020 when it should have been salary stub for 2021. ? Two (2) of the files examined did not have the last certification of the Nutrition Assistance Program (PAN) used in form 50058 to document total annual family income. ? In one (1) of the files examined the annual income received by the participant and documented in form 50058 was not properly calculated since the computation was made on a monthly basis instead of a weekly basis as the income was actually received by the participant. Questioned cost: No questioned costs were identified. Perspective information: We selected sixty (60) files of new tenants during 2021-2022 fiscal year from the Section 8 waiting lists. Cause: The Administration?s review process of the eligibility documentation in the files was not effective in these cases. Effect: Any error in income calculation and with the evidence presented by the participants could lead to wrong eligibility determination. Recommendation: We recommend the Administration to reinforce their internal control procedures in the review of the eligibility determination to avoid similar situations in the future. Views of responsible officials and planned corrective action: See Administration?s corrective action plan.