Finding 607635 (2022-003)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-09-20
Audit: 25746
Organization: Peoria Housing Authority (IL)

AI Summary

  • Core Issue: There are significant deficiencies in the Housing Choice Voucher tenant files, with 12% of files showing income-related errors.
  • Impacted Requirements: Compliance with federal regulations and HUD guidelines for documenting tenant eligibility is not being met, leading to potential misstatements in Housing Assistance Payments.
  • Recommended Follow-Up: Conduct a comprehensive audit of tenant files and enhance monitoring and training for staff to ensure compliance and accuracy in the Housing Choice Voucher program.

Finding Text

Finding 2022-003 ? Housing Choice Voucher Tenant File deficiencies ? Significant Deficiency and Noncompliance with Eligibility ? Qualified at Single Audit Level ALN No. 14.871 Criteria: The Code of Federal Regulations, the Housing Authority?s Admin Plan, and specific HUD guidelines in documenting and maintaining the Housing Choice Voucher tenant files. Condition & Cause: Our review of one hundred (100) Housing Choice Voucher tenant files revealed that there was a total of twelve (12) income-related errors, which represent 12% of the total files examined. We were able to numerically extrapolate ten (10) of these errors to the Housing Choice Voucher population. These consisted mainly of improper deductions, miscalculations, the use of outdated benefit information, and improper annualization of income. The remaining two (2) file errors were a result of lack of verification of income. Based on our extrapolation, we feel that the Housing Authority has a significant deficiency in this area of compliance. The Housing Authority has experienced high employee turnover and there are multiple vacancies in the Housing Choice Voucher department, which contributed to the deficiencies. Effect: The failure to properly calculate Housing Assistance Payments can result in a misstatement of HAP expense and corresponding operating subsidy earned by the Housing Authority, as well as undue financial burden on the tenant. Recommendation: We recommend that the Agency conduct a thorough tenant file audit of existing tenants in the Housing Choice Voucher program to determine whether there are any misstatements of HAP expense. We also recommend that the Agency increase their monitoring and review of the Housing Choice Voucher program files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.

Categories

HUD Housing Programs Subrecipient Monitoring Eligibility Significant Deficiency

Other Findings in this Audit

  • 31190 2022-001
    Significant Deficiency Repeat
  • 31191 2022-002
    Significant Deficiency
  • 31192 2022-001
    Significant Deficiency Repeat
  • 31193 2022-003
    Significant Deficiency
  • 607632 2022-001
    Significant Deficiency Repeat
  • 607633 2022-002
    Significant Deficiency
  • 607634 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $12.84M
14.850 Public and Indian Housing $3.00M
14.872 Public Housing Capital Fund $1.46M
14.879 Mainstream Vouchers $314,531
14.896 Family Self-Sufficiency Program $123,223
14.870 Resident Opportunity and Supportive Services - Service Coordinators $63,511