Finding Text
Assistance Listing, Federal Agency, and Program Name 14.871, U.S. Department of Housing and Urban Development Housing Voucher Cluster Section 8 Housing Choice Vouchers
Federal Award Identification Number and Year N/A
Pass through Entity N/A
Finding Type Significant deficiency and material noncompliance with laws and regulations
Repeat Finding No
Criteria The Commission is required to re examine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification (24 CFR section 982.516(a)(1)).
Condition For 3 tenants out of a sample of 60 tenants, incorrect calculations were prepared during the recertification process, resulting in incorrect housing assistance payments for these tenants.
Questioned Costs N/A
Identification of How Questioned Costs Were Computed Utilization of correct income using third party verficiation in tenant rent and housing assistance payment calculation for year under audit.
Context During the testing of 60 tenants selected for eligibility testing, we identified the following issues:
For 2 out of 60 samples selected for eligibility testing, an error was identified in the calculation of the tenant's housing assistance payment, resulting in an underpayment.
For 1 out of 60 samples selected for eligibility testing, an error was identified in the calculation of the tenant's housing assistance payment, resulting in an overpayment.
Cause and Effect The Commission did not properly recertify the tenant's income based on third party verifications, which resulted in errors in the calculation of the housing assistance payments. The errors in calculation resulted in a total underpayment of assistance in the amount of $501 through the period under audit and an overpayment of assistance in the amount of $512 through the period under audit.
Recommendation The Commission should complete tenant recertifications in accordance with applicable federal regulations. Views of Responsible Officials and Planned Corrective Actions The Commission acknowledges the incorrect subsidy calculations and has issued refunds to the tenants in the amount of underpayment of subsidy. The Commission has also adjusted future funding requests for the overpayment of subsidy.