Finding Text
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 / 14.879 Federal Award Identification Number and Year: MD004 (various funding increments active during period 7/1/21-6/30/22) Award Period: July 1, 2021 through June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance. ? Other Matters. Criteria: As a condition of admission or continued occupancy, the PHA must require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.601 et seq., 5.609, 960.253, 960.255 and 960.259). 24 CFR section 960.259 states that 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 sections 5.601 et seq., and 24 CFR sections 960.253, 960.255, and 960.259 state that the Commission must determine income eligibility and calculate the tenant?s rent payment using the documentation from third-party verification in accordance with 24 CFR part 5, subpart F. 24 CFR sections 5.230, 5.609, and 960.259 state that as a condition of admission or continued occupancy, the Commission must require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility. Condition: During our testing, we noted the Commission did not have adequate internal controls designed to ensure that eligibility requirements were being met. Questioned costs: Unknown Context: Testing of 1 of 40 HCVP tenant files for eligibility standards revealed one file missing documentation needed to support and recalculate total income per HUD-50059 Cause: The Commission does not have controls in place to ensure it is meeting eligibility requirements set by HUD. Effect: The Commission is not in compliance with program requirements over eligibility. Repeat Finding: No Recommendation: We recommend the Commission implement processes to ensure that all proper documentation is being maintained during the recertification process for every tenant. View of Responsible Officials: There is no disagreement with the audit finding.