Finding 63670 (2022-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-03-02

AI Summary

  • Core Issue: The Authority has repeated eligibility errors in tenant files, impacting compliance with HUD requirements.
  • Impacted Requirements: Internal controls and documentation standards for tenant eligibility and recertification are not being followed, risking incorrect rent payments.
  • Recommended Follow-Up: Implement ongoing quality control reviews, enhance staff training, and assess staffing levels to ensure compliance with HUD regulations.

Finding Text

2022-001 Eligibility ? Tenant Files Program: U.S. Department of HUD: Section 8 Housing Choice Vouchers (CFDA 14.871) Type of Finding: Material Weakness in Internal Control and Material Noncompliance This is a repeat finding of 2021-001 from June 30, 2021 Statement of Condition Out of a total tenant population of approximately 200 vouchers, 20 files were selected for testing. Exceptions were noted as follows: ? 1 error where the utility allowance was calculated incorrectly and reported incorrectly on the 50058 form. The HAP rent amount did not change. ? 1 file where the tenant?s wage income was calculated using only one paystub even though the tenant provided two. This changes the tenant?s HAP rent from $592 to $579. ? 1 file where the $360 for food stamps was included in the tenant?s income and should have been excluded. This changes the HAP rent from $466 to $475. ? 1 file where there was no support for a full-time student deduction for one member of the household. The HAP rent amount did not change. ? 1 file that did not contain a signed lease agreement and HAP contract for the current landlord and unit address. In addition to the above, during our new admissions testing (3 tested out of 22 new admissions) we noted the following: ? 1 error where the request for tenancy form was signed three days after voucher expiration with no proof of extension in the file. ? 1 error where the HAP contract was signed by the owner more than 11 months after the move-in date. Criteria 24 CFR 982.516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. In addition, the Authority?s administrative plan also requires following proper procedures for determination of HAP and documentation in the tenant files. Questioned Costs: None. Effect The Authority is not in compliance with all of the HUD requirements regarding eligibility and tenant recertification, which could result in incorrect total tenant payments for rent and HAP payments to landlords. Cause Procedures to ensure compliance with all of the HUD requirements were not being carefully followed. Recommendation The Authority should correct the deficiencies noted in the tested files and utilize an ongoing quality control review process on the entire tenant population to ensure proper compliance with the requirements related to tenant eligibility. Ongoing staff training and timely management reviews should be utilized to ensure staff is aware of acceptable procedures. In addition, the Authority should review staffing levels, skill sets and case load. Views of Responsible Officials of the Auditee We concur with the recommendation and have implemented various controls. A tenant file and unit quality control procedure has been developed and implemented. See corrective action plan.

Categories

HUD Housing Programs Eligibility Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 63668 2022-001
    Material Weakness Repeat
  • 63669 2022-002
    Material Weakness Repeat
  • 63671 2022-002
    Material Weakness Repeat
  • 640110 2022-001
    Material Weakness Repeat
  • 640111 2022-002
    Material Weakness Repeat
  • 640112 2022-001
    Material Weakness Repeat
  • 640113 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.51M
14.850 Public and Indian Housing $433,297
14.872 Public Housing Capital Fund $190,667
14.871 Covid-19 Section 8 Housing Choice Vouchers $53,947
14.850 Covid-19 Public and Indian Housing $16,634