Finding Text
2023-001 –ELIGIBLY: RENT CALCULATION
Other Matter/Significant Deficiency
U.S. Department of Housing and Urban Development
CFDA #: 14.871 / 14.879 – Housing Voucher Cluster
CRITERIA
For both family income examinations and reexamination, 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 (24 CFR Section 982.516).
Determine income eligibility and calculate the tenant’s rent payment using the documentation
from third-party verification in accordance with 24 CFR Part 5 subpart F (24 CFR section
5.601 et seq.) (24CFR sections 982.201, 982.515, 982.516).
CONDITION
As a result of procedures, we identified five instances of missing income verification.
CAUSE
The Authority’s system of internal control over the participant recertification process was not
sufficient to meet the requirements established by HUD.
EFFECT
Redetermination of tenant’s rent and the housing assistance payment was not performed in
accordance with HUD regulations. As a result, tenants may have paid more or less in rent than
they should have paid.
QUESTIONED COSTS
None noted.
CONTEXT
We selected a sample of 25 from a population of 276. This was not a statistically valid sample.
REPEAT FINDING
Not a repeat finding.
RECOMMENDATION
We recommend that the Authority develop and implement a recertification checklist to
accompany the tenant file to ensure all required documentation is obtained.
AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
See Corrective Action Plan.