Finding Text
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Award Period: April 1, 2021 ? March 31, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (1) 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 section 982.516). Condition: In a population of over 250 tenant files, exceptions were noted in 5 out of 40 files tested. ? In 2 out of 40 files, the Authority was not able to support the dependent allowance included as a deduction from annual income. ? In 3 out of 40 files, the Authority was not able to support the reported family annual income. Questioned costs: Unable to determine. Context: 40 tenant files were selected from a population of over 250. The sample was statistically valid. Cause: The Authority did not maintain income or expense related file documentation in the tenant's file. Effect: The Authority is not in compliance with federal regulations regarding eligibility. The Housing Assistance Payment (HAP) calculation may be inaccurate resulting in an underpayment or overpayment of HAP. Repeat Finding: No Recommendation: We recommend that the Authority reviews its internal controls over obtaining and maintaining income and expense tenant file documentation to ensure compliance with eligibility requirements. Views of responsible officials: There is no disagreement with the audit finding.