Finding 971266 (2023-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-04-26

AI Summary

  • Core Issue: 47% of tenant files reviewed were noncompliant, with multiple discrepancies in income verification and documentation.
  • Impacted Requirements: Compliance with federal regulations and HUD guidelines for maintaining Low Income Public Housing tenant files.
  • Recommended Follow-Up: Conduct a comprehensive audit of tenant files and establish a monitoring system for ongoing compliance.

Finding Text

Finding 2023-001 – Low Income Public Housing Tenant Files – Eligibility – Noncompliance & Significant Deficiency – Public and Indian Housing – ALN 14.850 Condition & Cause: We reviewed fifteen (15) files from the Public Housing program. We noted seven (7) files that were not in compliance, or 47% of our sample. Some files were out of compliance in more than one area. Our review revealed the following discrepancies: • One (1) instance of failing to gather proper income verification; • Two (2) instances of failing to properly calculate annual income; • One (1) instance of failing to maintain EIV documentation; • Three (3) instances of failing to maintain birth certificates or social security cards; and • Three (3) instances of failing to maintain Declaration 214s We were able to extrapolate the miscalculations of annual income and found that the potential misstatement of rental revenue was immaterial to the financial statements. We noted that the PHA has experienced turnover in property managers over the past several audits and attribute this to the cause of the discrepancies. Criteria: The Code of Federal Regulations, the Housing Authority Admissions and Continued Occupancy Policy and specific HUD guidelines in documenting and maintaining Low Income Public Housing tenant files. Recommendation: We recommend that the Agency conduct a thorough tenant file audit of existing tenants to determine whether there are any additional misstatements. We also recommend that the Agency determine the best way to monitor compliance with local and federal regulations as it pertains to the upkeep of the tenant files. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes

Categories

HUD Housing Programs Eligibility Significant Deficiency

Other Findings in this Audit

  • 394824 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $1.07M
14.872 Public Housing Capital Fund $1.01M
14.871 Section 8 Housing Choice Vouchers $688,508
14.182 Section 8 New Construction and Substantial Rehabilitation $128,798