Finding Text
Finding 2022-001 ? Low-Income Public Housing Tenant Files ? Eligibility ? Internal Control over Tenant Files ? Noncompliance and Significant Deficiency - ALN 14.850 Low-Income Public Housing ? Subsidy Condition & Cause: Our review of thirty-five (35) Low-Income Public Housing tenant files revealed the following discrepancies: three (3) instances of improper income calculation or verification; two (2) tenant files with unverified or omitted deductions from annual income; and one (1) annual recertification that was completed four months after the anniversary date. We were able to numerically extrapolate three (3) of these errors to the program population. Based on our calculations, we found the potential misstatement to be roughly $36,015, or 1.58% of dwelling rental income, which is immaterial to the financial statements. Additionally, we noted eighteen (18) files in which Form 9886 (Consent for Release of Information) was not signed by the tenant and PHA staff proceeded to obtain third party verification. This occurred because the authority conducted many of the annual recertifications via phone interview during the fiscal year as a precaution for COVID-19. Criteria: The Code of Federal Regulations 24 part 5, the Housing Authority?s Admissions and Continued Occupancy Policy, and specific HUD guidelines in documenting and maintaining the Low-Income Public Housing tenant files. Effect: The failure to properly calculate tenant income and rental charge can result in a misstatement of dwelling rental income and corresponding operating subsidy earned by the Housing Authority. Recommendation: We recommend that the Agency conduct a thorough tenant file audit of existing tenants in the Low-Income Public Housing program to determine whether there are any errors in the matter of rental income. We also recommend that the Agency increase their monitoring and review of the Low-Income Public Housing program files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. Questioned Costs: In our sample, we calculated $1,807 in overcharged rent throughout the fiscal year. Our sample size is 5.02% of the population. Using extrapolation, we can estimate a potential misstatement in dwelling rental income of roughly $36,015. Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.