Finding 601572 (2022-002)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-03-29

AI Summary

  • Core Issue: Tenant files for the Housing Choice Vouchers Program are missing essential documentation, including recertification paperwork and income verification.
  • Impacted Requirements: Compliance with eligibility conditions and criteria, specifically documentation like HUD Form 9886 and 3rd-party income verification.
  • Recommended Follow-up: Strengthen internal controls to ensure all required documentation is included in tenant files.

Finding Text

2022-002 ? Housing Choice Vouchers Program Tenant Files CFDA Number: 14.871, Housing Choice Vouchers Compliance Requirement: Eligibility Condition and Criteria: As part of the process of obtaining eligibility, documentation of items such as income verification, deductions from annual income, HUD Form 9886, Authorization for the Release of Information are required to be in the file, among other required forms. During the current year audit, 40 tenant files were reviewed. Of the 40 tenant files reviewed, the following was noted: 1) Four (4) files did not have recertification paperwork for the Housing Assistance Payment (HAP) that was selected for audit. 2) Two (2) files did not contain the required 3rd-party income verification. 3) The Utility Allowance Schedule did not match HUD Form 50058 in three (3) files. 4) Two (2) files did not contain HUD Form 9886. Type of Finding: Significant Deficiency Cause: The Internal Control Structure was not adequate to prevent these deficiencies. Effect: Required documentation was not located in the tenant files. Questioned Costs: None known. Auditors? Recommendations: We recommend that the Housing Authority strengthen its internal controls to ensure proper documentation in included in the tenant files. Corrective Action Plan: See attached response from the Executive Director on page 42.

Categories

HUD Housing Programs Eligibility Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 25129 2022-001
    Significant Deficiency
  • 25130 2022-002
    Significant Deficiency
  • 601571 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $4.27M
14.850 Public and Indian Housing $3.82M
14.195 Section 8 Housing Assistance Payments Program $2.30M
14.872 Public Housing Capital Fund $2.28M
14.870 Resident Opportunity and Supportive Services - Service Coordinators $226,667