Finding 621187 (2022-003)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-08-06

AI Summary

  • Core Issue: One tenant file lacked documentation for a job loss, impacting income verification.
  • Impacted Requirements: The PHA must verify and document factors affecting adjusted income as per federal regulations.
  • Recommended Follow-Up: Implement stronger internal controls to ensure compliance with documentation requirements.

Finding Text

Federal Program ? Section 8 Housing Choice Voucher Program AL #14.871 ? Eligibility for Individuals Federal Program Section 8 Housing Choice Vouchers AL #14.871 ? Significant Deficiency Criteria The PHA must obtain and document in the family file third party verification of reported family annual income; the value of assets; expenses related to deductions from annual income; and other factors that affect the determination of adjusted income or income based rent (24 CFR section 982.516). Condition During our testing of fourteen tenant files, we noted that one file did not retain documentation verifying the loss of a job for a tenant. Questioned Costs None Context We reviewed a random sample of fourteen tenant files for a tenant?s HAP amount. Effect The loss of job of a tenant was not documented adequately for determining the tenant?s income. Cause The Authority experienced turnover in the Section 8 program. As a result, controls were not in place to ensure proper documentation. Repeat Finding This is not a repeat finding from the prior year. Recommendation We recommend that the Authority implement proper internal controls to ensure the Authority?s compliance with special tests requirements. Views of Responsible Officials We are aware of the issue and have taken subsequent steps to ensure compliance with this requirement.

Categories

HUD Housing Programs Eligibility Significant Deficiency Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 44744 2022-002
    Material Weakness
  • 44745 2022-003
    Significant Deficiency
  • 44746 2022-004
    Significant Deficiency Repeat
  • 621186 2022-002
    Material Weakness
  • 621188 2022-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $908,460
14.850 Public and Indian Housing $128,491
14.872 Public Housing Capital Fund $26,145
10.854 Rural Economic Development Loans and Grants $24,750