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Finding 2: The Authority Lacked Adequate Controls over Housing
Assistance Payments
The Authority did not comply with HUD regulations or its program administrative plan
regarding housing assistance payments. It often lacked adequate documentation to substantiate
the housing assistance payments it made to program landlords, and it incorrectly calculated some
housing assistance payments. These problems occurred because the Authority did not have
adequate procedures and controls in place to ensure that it properly followed HUD regulations
and its own program administrative plan. As a result, it was unable to support $240,521 in
housing assistance payments, and it overpaid $7,523 and underpaid $7,197 in housing assistance.
The Authority Lacked
Documentation to Support
More Than $240,000 in Housing
Assistance Payments
The Authority lacked documentation to support housing assistance payments
totaling $240,521 for the period January 2004 through March 2006. Of the 74
tenant files reviewed 48 (65 percent) had the following missing or incomplete
documents:
戮 Forty did not contain rent reasonableness surveys to support rent
increases;
戮 Eight did not have documentation to support reexaminations;
戮 Four did not contain signed lead-based paint disclosure forms;
戮 Five did not contain adequate documentation to support income;
戮 Two did not contain HUD Form 214, Declaration of United States
Citizenship;
戮 Two did not contain housing assistance payments contracts;
戮 One did not contain a signed lease.
The 48 files did not include documentation required by HUD regulations and
were not consistent with the Authority鈥檚 program administrative plan. Appendix
D of this report details all of the discrepancies identified in the 48 files.
The Authority鈥檚 noncompliance occurred because Authority officials did not have
controls in place to ensure all documents are included in the file, income is
verified, and all housing assistance payments are supported. Also, the Authority
experienced high staff turnover and lacked management oversight.
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