Finding 964232 (2023-003)

2023 – 003 Housing Choice Voucher Program –Eligibility and HAP Payment Testing Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Choice Voucher Program Assistance Listing Number: 14.871 Federal Award Identification Number and Year: PA004 (various funding increments active during period 7/1/22-6/30/23) Award Period: July 1, 2022 – June 30, 2023 Type of Finding: Material Weakness in Internal Control over Compliance, Other Matters Criteria or specific requirement: Per 24 CFR Part 908 and 24 CFR section 982.158, the Authority is required to electronically submit the HUD-50058 form to HUD each time they complete an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. Per 24 CFR section 982.158 and 24 CFR Part 982, Subpart K, PHA must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. This HAP amount must be reflected on the HAP contract and HAP register. Per 24 CFR section 982.516, for both family income examinations and reexaminations, 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. Condition: During our testing of 60 tenant files for eligibility criteria, we noted the following: 4 of 60 tenant files had incorrectly calculated incomes. 2 of 60 tenant files missing proper 3rd party asset verification. 1 of 60 tenant files was not able to be located in the PIC system. Questioned Costs: $2,233 Context: • In a statistically valid sample, during our testing of 60 tenant files for eligibility criteria, we noted the following: 4 of 60 tenant files had incorrectly calculated incomes. 2 of 60 tenant files missing proper 3rd party asset verification. 1 of 60 tenant files was not able to be located in the PIC system. Cause: The authority does not have controls in place to ensure it is meeting Eligibility and HAP Payment Testing requirements set by HUD. Effect: The authority is not in compliance with HUD guidelines over eligibility or HAP payments. Repeat Finding: Repeat finding, 2022-003. Section III – Findings and Questioned Costs – Major Federal Programs (Continued) 2023 – 003 Housing Choice Voucher Program –Eligibility and HAP Payment Testing (Continued) Recommendation: We recommend the Authority review their process for maintaining third party verification of income, for uploading data to PIC, and for recalculating household income. Views of responsible officials: There is no disagreement with the audit finding.