Finding Text
Finding 2023-004 – Housing Choice Voucher Tenant Files – Rent Calculations
ALN 14.871 – Noncompliance & Significant Deficiency
Criteria:
Part 24 of the Code of Federal Regulations, Section 982, and the Housing Choice Voucher Guidebook give the requirements and guidance for maintaining the tenant files. HUD requires that certain information be obtained from each resident to properly support the rental calculations and prescribes acceptable methods of tenant income calculation. Additionally, the Agency’s Administrative Plan provides guidance on the requirements of the tenant files and how they must be maintained.
Condition & Cause:
We reviewed fifteen (15) Housing Choice Voucher tenant files and noted two (2) files were not in compliance, or 13.3%. Both instances pertain to the verification or calculation of annual income. In the first file noted, the Agency failed to gather proper third-party verification for a portion of income. In the second file, the Agency conducted an interim reexamination for a decrease in income but failed to remove a portion of the income from the rental charge calculation.
Effect:
Improper calculation of tenant rental charges can result in misstatement of the financial statements, improper calculation of HAP subsidy, and noncompliance with Federal provisions governing the Housing Choice Voucher program.
Recommendation:
We recommend that the Authority conduct a file audit of existing tenants to determine whether there are additional deficiencies. We also recommend that the Authority implement a quality control review to adequately monitor compliance with regulations pertaining to the maintenance of tenant files.
Questioned Costs: None
Repeat Finding: No
Was sampling statistically valid? Yes