Finding 973451 (2022-003)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2024-05-16

AI Summary

  • Core Issue: One tenant file showed an incorrect Housing Assistance Payment due to inadequate documentation.
  • Impacted Requirements: Compliance with 24 CFR regulations on income eligibility and rent calculations is not being met.
  • Recommended Follow-Up: Organize tenant files properly, ensure all required documents are included, and implement a checklist for eligibility requirements.

Finding Text

Federal Program U.S. Department of Housing and Urban Development AL #14.871 – Material Weakness Criteria The PHA must 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.) (24 CFR sections 982.201, 982.515, and 982.516). Condition During our testing of fifteen tenant files, we found one file where Housing Assistance Payment was incorrect. Cause Proper eligibility documentation is not being prepared and maintained in all tenant files. Questioned Costs Not material Context We reviewed a sample of 14 tenant files out of a total of 132 tenants. Effect The Authority may be providing assistance to tenants that no longer qualify or may be charging incorrect rental rate per approved policies. Recommendation We recommend tenant files should be maintained in an orderly fashion and all required documentation should be kept in the appropriate file. Each file should also contain a checklist that contains separate line items for each eligibility requirement. Repeat Finding This is a repeat finding of 2021-003 Views of Responsible Officials Management will continue to educate new staff and make sure they understand the importance of compliance with all policies. We will continue to emphasize the importance of documentation and reviewing checklists to improve our processes.

Categories

HUD Housing Programs Eligibility Material Weakness

Other Findings in this Audit

  • 397009 2022-003
    Material Weakness Repeat
  • 397010 2022-004
    Material Weakness Repeat
  • 397011 2022-005
    Material Weakness
  • 397012 2022-006
    Material Weakness Repeat
  • 397013 2022-007
    Material Weakness Repeat
  • 397014 2022-008
    Material Weakness Repeat
  • 973452 2022-004
    Material Weakness Repeat
  • 973453 2022-005
    Material Weakness
  • 973454 2022-006
    Material Weakness Repeat
  • 973455 2022-007
    Material Weakness Repeat
  • 973456 2022-008
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $540,901
14.850 Public and Indian Housing $198,995
14.872 Public Housing Capital Fund $169,407