Finding 601270 (2022-001)

Material Weakness
Requirement
ELN
Questioned Costs
-
Year
2022
Accepted
2023-06-12

AI Summary

  • Core Issue: The PHA failed to obtain third-party verification for 5% of tenant files, impacting the accuracy of reported income.
  • Impacted Requirements: This violates 24 CFR ? 982.516(a) and 24 CFR ? 908, which mandate annual income reexaminations and proper documentation.
  • Recommended Follow-Up: The Executive Director and staff must ensure all tenant files have the necessary documentation to comply with income verification and reporting standards.

Finding Text

24 CFR ? 982.516(a) states the Public Housing Authority (PHA) must conduct a reexamination of family income and composition at least annually. Section 2 states the PHA must obtain and document in the tenant file third-party verification of the following factors or must document why third-party verification was not available: (i) 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 income- based rent. 24 CFR ? 908 states the Public Housing Authority (PHA) is required to submit HUD-50058 form electronically to HUD each time the Public Housing Authority (PHA) completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. 24 CFR ? 982.505(b) states the Public Housing Authority (PHA) shall pay a monthly housing assistance payment on behalf of the family that is equal to the lower of: (1) The payment standard for the family minus the total tenant payment; or (2) The gross rent minus the total tenant payment. The Authority did not have third-party verification of account balances of 5 percent of the tenant files tested for the Housing Choice Voucher program. The failure to verify and maintain third-party verification support could lead to questions on the validity of the income reported and future questioned costs, reduced federal funding, and the requirement to repay the U.S. Department of Housing and Urban Development. The Executive Director and Housing Choice Voucher employees should ensure all tenant files maintain the appropriate documentation to meet the requirements of income verification and housing assistance payments reporting.

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

  • 24828 2022-001
    Material Weakness
  • 24829 2022-002
    Significant Deficiency
  • 24830 2022-001
    Material Weakness
  • 24831 2022-002
    Significant Deficiency
  • 601271 2022-002
    Significant Deficiency
  • 601272 2022-001
    Material Weakness
  • 601273 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $867,078
14.879 Mainstream Vouchers $589,671
14.850 Public and Indian Housing $555,473
14.872 Public Housing Capital Fund $92,130
14.239 Home Investment Partnerships Program $67,692
14.896 Family Self-Sufficiency Program $56,776