Finding Text
2022-002 ? ELIGIBILITY Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.850 ? Public and Indian Housing Program CRITERIA Except as provided in paragraph (c)(2) of this section, the PHA must obtain and document in the family file third-party verification of the following factors, or must document in the file why third-party verification was not available: (i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income or income-based rent. (24 CFR 960.259) CONDITION From our sample of 40 recertification actions in the Public Housing Program, we identified 4 instances of missing verifications or the instances where verifications obtained did not agree to amounts reported on the form 50058. CAUSE The Authority's system of third-party verifications of tenant?s income and choice of rent was not sufficient to properly administer the program. EFFECT The Authority did not implement procedures that ensured proper verification and calculation of income, expenses, and deductions are used in calculating annual income, adjusted income, and thereby rent. QUESTIONED COSTS None Identified. CONTEXT The Authority owns and operates 803 units of Public Housing. We selected a sample of 40 participant files. This was not a statistically valid sample. REPEAT FINDING Repeated from Finding 2021-004. RECOMMENDATION We recommend policies and procedures are strengthened to ensure all proper documentation and annual recertification are maintained in all tenant files to document eligibility. AUDITEE?S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.