Finding Text
2023-001 – Documentation of Controls
U.S. Department of Housing and Urban Development 14.871 – Section 8 Housing Choice Vouchers
Condition: During review of the Housing Choice Voucher tenant files, RBT noted that of the 40 tenant files tested, 9 files had an incomplete form HUD-9886, 4 files had an incomplete Housing Quality Standards (“HQS”) inspection, 1 file had an incomplete recertification, and 2 files were missing entirely. For the files that could not be located, form HUD-9886, form HUD-50058, EIV third-party verification, reasonable rent assessment, utility allowance determination, and HQS inspection were all missing. RBT also noted that the Authority was not appropriately documenting the controls over Eligibility, Reasonable Rent, Utility Allowance, and HQS Inspections.
Criteria: As a condition of admission or continued occupancy, PHAs must require the tenant and applicable family members to provide necessary information and releases for the PHA to verify income eligibility and obtain and document the family third-party verification of reported family income during annual reexamination of family income or during move-in. Additionally, as a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements.
Cause: The Authority does not have a central, uniform location to document the controls in place over Eligibility, Reasonable Rent, Utility Allowance and HQS Inspections.
Effect: Potential loss of funding due to noncompliance or additional noncompliance if a control is missed.
Questioned Costs: None identified.
Perspective: This is a systemic issue.
Repeat Finding: Not a repeat finding.
Recommendation: We recommend that the Authority establish a checklist for the Tenant Relations Assistants to use during the recertification process to ensure all compliance requirements are met. The checklist should be signed or initialed by the representative and maintained in the tenant’s file. This checklist will serve as documentation that all compliance requirements were verified for the tenant.
Auditee’s Response: The Authority agrees with the finding. See corrective action plan.