Finding Text
2022-003 Eligibility: Public Housing Tenant Files Public and Indian Housing Program ? CFDA Number 14.850 Material Weakness in Internal Control Material Noncompliance Condition: Out of a total tenant population of approximately 145 tenant files, 15 files were selected for testing. Exceptions were noted as follows: ? 1 tenant file where the Authority was unable to locate certain documents and therefore could not test items such as Form 9886, birth certificates, social security cards, income and deduction support, utility allowance schedules and EIV verification. ? 1 tenant file where dependent?s 214 affidavit was not signed. However, we did note that the dependent was a US Citizen (per review of birth certificate) and therefore eligible for the program. ? 1 tenant file where tenant?s reported income was incorrect on the Form 50058. However, this had no impact on tenant?s rent as this was a flat rent unit. We also noted as part of our new admissions testing (3 selected for testing out of population of 23 new admissions) the following: ? 1 new admission where the applicant and dependent?s Form 214 were not signed. However, it was noted that the applicants were citizens (per review of birth certificate information) and therefore eligible for the program. Criteria: 24 CFR 960.253 - 259 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. In addition, the Authority?s Admissions and Continued Occupancy Policy (ACOP) also requires following proper procedures for determination of rent 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 recertification, which could result in incorrect total tenant payments for rent. Cause: Procedures to ensure compliance with all of the HUD requirements were not carefully followed. Auditor?s 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: We concur with the recommendation. Due to the COVID-19 pandemic and related staff absences and turnover, we were not able to locate certain documents. We will assure that files are complete and are supported with proper documentation.