Finding 6234 (2023-001)

Finding 2023-01: Incorrect Income Amounts and Missing Income Verification on Family Reports (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Public and Indian Housing Federal Assistance Listing Number: 14.850 Compliance Requirement: Eligibility Criteria: The Authority’s Admissions and Occupancy Plan (ACOP), along with 24 CFR Section 960.259, requires the Authority to verify eligible tenant’s family annual income. Condition: The Authority did not provide adequate income information to verify income amounts and included the incorrect income amount on Family Reports. Context: Of the 40 tenant files reviewed, 2 of them reflected the incorrect income amount in the Family Report and 3 of them did not have adequate income verification. Effect: The Authority did not charge the proper rent amounts to tenants. Cause: The Authority did not maintain proper internal controls to prevent or detect the incorrect income amounts and the missing income verification. Projected Questioned Costs: $65,000 Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its internal controls to ensure that income verification is adequately documented and that income amounts are correctly included in the Family Reports. Views of Responsible Officials: The Authority agrees with the finding.