Finding Text
2022-002 Special Tests and Provisions ? Income Targeting 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 2021-002 from June 30, 2021 Statement of Condition The Authority did not have adequate controls over income targeting to assure that the Authority is in compliance with this requirement. During our testing, we noted that tenants with incomes that were extremely low accounted for approximately 59% of new admissions during the fiscal year, which is below the minimum required percentage of 75%. Criteria During each fiscal year, at least 75% of the Authority?s new admissions in the Housing Choice Voucher Program must have incomes that do no exceed 30% of the area median income (?extremely low?) as published by HUD. Questioned Costs None. Effect The Authority does not appear to be in compliance with Section 8 income targeting requirements. Cause The Authority did not have sufficient internal controls in place to track income targeting. Recommendation We recommend the Authority assure that at least 75% of new admissions be in the extremely low-income bracket. This should be monitored throughout the year. The Authority can also select applicants on the waiting list who are extremely low income by bypassing others on the list that don?t meet the requirement and documenting that the person was selected ahead of others to be able to meet the requirement. 2022-002 Special Tests and Provisions ? Income Targeting (Continued) Views of Responsible Officials of the Auditee: We concur with the recommendation. We will closely monitor new admissions and focus on applicants on the waiting list who meet the criteria as extremely low income so that the 75% requirement is met.