Finding Text
2022-002 Special Tests and Provisions: HCV Current Waiting List Section 8 Housing Voucher Cluster (Section 8): Section 8 Housing Choice Vouchers Program ? CFDA Number 14.871 Mainstream Vouchers ? CFDA Number 14.879 Material Weakness in Internal Control, Material Noncompliance Condition: Out of a total waiting list population of approximately 1300 applicants, 25 applicants were selected for testing. Exceptions were noted as follows: ? 1 preference point error where the applicant selected the involuntary displacement and homeless preference points on their pre-application, which agrees to the information in Yardi, but doesn?t agree to the generated waiting list. ? 7 preference point errors where the applicants? selected the residency preference points on their pre-applications, which agrees to the information in Yardi, but doesn?t agree to the generated waiting list. As a result of the above, applicants may not be ranked properly on the waiting list and applicants may be selected out of order. Criteria: Applicants on the waiting list must be kept in the proper order based on application date and/or approved preferences. The Authority is required to admit tenants based on the waiting list in accordance with HUD requirements and the Authority?s policies. The Authority must have written policies in its HCV Administrative Plan for selecting applicants from the waiting list and Authority documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. All proper documentation must be kept in the tenant file. In addition, only applicants who are eligible should be admitted to the program. Questioned Costs: None. Effect: The Authority is not in compliance with applicable HUD regulations and admission policies and as a result may admit applicants from the waiting list in an improper order. Cause: The waiting list software did not interface properly with the application preferences. Thus, procedures to ensure compliance with all of the HUD requirements were not carefully followed. Auditor?s Recommendation: The Authority should review procedures and increase training to employees and reviewers to ensure that the Authority is in compliance with HUD rules for new admissions and waiting list maintenance. In addition, the Authority should implement a review procedure to make sure that all tenants are admitted in the proper order with proper supporting documentation. Views of Responsible Officials of the Auditee: The Authority agrees with the finding and has taken corrective action. See the ?Action Taken? on the Corrective Action Plan.