Chester Housing AuthorityLocal Government

4 tenant files could not be located when requested for tenant file testing

1 of the selections for waitlist testing was chosen without following chester housing authority waitlist procedures

Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Public and Indian Housing CFDA: 14.850 Award Period: 07/01/2018 - 06/30/2019 Type of Finding: Material Weakness Criteria or Specific Requirement: 24 CFR section 960.259 states that for both family income examinations and reexaminations, the Public Housing Agency (?PHA?) must obtain and document in the family file third-party verification of: (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent. 24 CFR Sections 5.212, 5.230, and 5.601 through 5.615 state that the head of household must sign (a) a certification that the information provided to the PHA is correct; (b) one or more release forms to allow the PHA to get information from third parties; (c) a federally prescribed general release form for employment information; and (d) a privacy notice. Members of the household 18 or older are also required to sign these forms. 24 CFR Part 908 and 24 CFR Section 982.158 state that the PHA is required to submit the HUD-50058 form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA's jurisdiction under portability. PIH Notice 2011-65 states that reports must be submitted no later than 60 calendar days from the effective date of any action recorded. Condition: During our testing, we noted that the Authority did not follow their internal controls designed to ensure compliance with tenant eligibility requirements. Known Questioned Costs: $35,935 Context: Testing of 60 Public Housing files selected for eligibility testing noted exceptions in ten files which included the following: ? Four tenants who had vacated in prior years were on the rent roll. ? One tenant deceased in a prior year was on the rent roll. ? Three tenants did not receive a recertification in the past year. ? Two files noted variances between the rent roll and rent per the applicable recertification amount in the file. Cause: The Authority did not have adequate staffing in the compliance department to perform regular recertifications in prior years. In addition, the Authority did not properly upload the most current HUD-50058 information to the PIC system. Effect: The Authority is not in compliance with federal regulations regarding eligibility. The amount of housing assistance payments or tenant rent could be incorrect based on missing or inaccurate information. Repeat Finding: Yes, #2018-001 Recommendation: We recommended that the Authority review their recertification process and their process for reporting the HUD-50058 form to HUD. We also recommended that management contact the software company to create a report that identifies all tenants that are considered active that not had a recertification in the last year. Views of Responsible Officials: There is no disagreement with the audit finding.

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