Finding Text
Criteria In accordance with 24 CFR sections 5.230, 5.609
and 960.259, the PHA must, as a condition of
admission or continued occupancy, require the
tenant and other family members to provide
necessary information, documentation, and
releases for the PHA to verify income eligibility,
including 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 incomebased
rent. Based on those factors, the PHA
must determine income eligibility and calculate
the tenant's rent payment using the
documentation from third party verification. The
PHA must reexamine 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.
Statement of Condition In our sample of 40 program participants, we
noted one instance in which the tenant's annual
income was not calculated in accordance with the
relevant program requirements.
Statement of Cause/Possible
Asserted Effect
The instances discussed above were the result of
the controls to support review of tenant files for
required documentation and tenant rent and
housing assistance payment calculations not
operating effectively. This deficiency in controls
resulted in erroneous tenant annual income
calculations in all the cases. Reference Number Finding No. 2023-001 Eligibility (continued)
Questioned Costs In the first instance, the tenant's annual income
was incorrectly calculated.. This resulted in a
higher housing assistance payment (HAP) for 4
month. There were no questioned costs
associated with this instance.
Perspective Information Sampling method- The sample was not intended
to be, and was not, a statistically valid sample.
Total fiscal year 2023 HAP expenditures
associated with the 40 program participants
tested in our sample was approximately
$406,404. The total population of HAP payments
made during FY 2023 was approximately 41.0
million.
Identification of Repeat Findings This finding is a repeat of a finding in fiscal year
2021, Reference Number 2021-001 Eligibility.
That finding was not corrected in 2022.
Recommendation The Authority should strengthen controls over its
review processes regarding tenant eligibility and
rent determinations, including that the correct
information is used to determine rent amounts.
We recommend that the Authority implement a
secondary review procedure of annual
recertifications for tenant files.
Views of Responsible Officials Management agrees with this finding.