Finding Text
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 – Significant Deficiency
Criteria
The Authority must reexamine family income at least once every 12 months and obtain and
document third party verification (24 CFR section 982.516).
Condition
We tested compliance with the Authority’s eligibility in 40 tenant files and found that one tenant
did not have a reexamination of all income done within the 12 months and no third party
verification was performed on that income. We also noted one tenant did not have a signed
lease agreement within the file.
Questioned Costs
None
Context
We reviewed a sample of 40 of the Authority’s 436 tenant files for eligibility requirements.
Effect
HAP payments could have been paid to a tenant who was not eligible to receive the payments.
Cause
The Authority failed to reexamine family income every 12 months and obtain third party
verification for all income.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend there be a second party review of the file to ensure all necessary procedures
have been performed and appropriate documents are included.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.