Finding Text
2022-004) Eligibility
Department of Housing and Urban Development (HUD) – 14.871 Housing Choice Vouchers and 14.879 Mainstream Voucher Program
Grant No(s): HUD FY2022 Annual Contributions Contract (ACC)
Criteria: HUD regulations and grant awards set the criteria for program participant eligibility determinations. Participant eligibility determinations should be supported by applicable records and supporting documentation.
Universe/Population: The universe/population for Eligibility is 47,147 Housing Assistance Payments (HAPs) made to landlords on behalf of program participants during the year ending December 31, 2022. The sample included 60 HAPs for testing of eligibility compliance requirements applicable to the program.
Condition: Of the 60 HAPs selected for testing, Jefferson Parish could not provide eligibility determination records or supporting documentation for 20 tenants. In addition, Jefferson Parish could not provide records or supporting documentation to determine that the rent to owner was reasonable at the time of initial leasing for 5 tenants.
Cause: Jefferson Parish outsourced management functions of the Housing Choice Vouchers and Mainstream Voucher Programs during part of the year ending December 31, 2022. The outsourced management company maintained the records and supporting documentation. Jefferson Parish was not able to retrieve these documents and provide them to the auditors.
Effect: Failure to comply with the reporting requirements may result in sanctions, including: temporary withholding of cash payments, whole or partial suspension of the Federal award, suspension, debarment or limited denial of participation in Department of Housing and Urban Development programs.
Questioned Costs: None determined.
Identification of a repeat finding: This is not a repeat finding.
Recommendation: Jefferson Parish should establish a formalized control to monitor maintenance of participant eligibility determination records and supporting documentation.
Management Response: The Housing Services Development District (HSDD) had previously been attempting to reconstruct, where feasible, the client files received from the previous management contractor. We have continued on this effort in an attempt to eliminate the audit finding moving forward. It should be noted, that files effected under the HSDD Management did not contain this deficiency. As such, audit files selected for the 2023 audit year will contain all relevant monitoring documentation.