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
Federal Award Identification Number and Year: DC001VO - 2021
Award Period: October 1, 2020 – September 30, 2021
Type of Finding:
Material Weakness in Internal Control over Compliance
Material Noncompliance (Modified Opinion)
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/Context: Exceptions noted in 4 out of 40 NON-MTW HCVP files tested:
For 3 of 40, we were unable to recalculate the income total listed on the HUD-50058 based on the backing support provided.
For 1 of 40 samples, we did not observe documentation showing the head of household was the parent or legal guardian to a dependent for which an allowance was granted.
For 1 of 40 samples, we did not observe a recertification checklist, or a substitute application, showing a specialist's signature (documenting performance of a key internal control).
The sample was statistically valid.
Questioned Costs: Unable to determine.
Cause: The Authority did not sufficiently monitor controls to ensure compliance with eligibility requirements.
Effect: The Authority is not in compliance with federal regulations regarding eligibility. Tenant rent may have been miscalculated due to using incorrect information in the rent calculation. Tenant
recertifications were not shown to be performed on a timely basis.
Repeat Finding: No.
Recommendation: We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit.
Views of Responsible Officials: There is no disagreement with the audit finding.