WASHINGTON HOUSING AUTHORITY

2025-001 ALN 14.871 – Housing Choice Voucher Program – Eligibility Condition and Criteria: During our testing of tenant files for the HCV Program, we identified multiple instances where required eligibility and program documentation was missing or inconsistent. Specifically, we identified 1 instance where files lacked required third-party income verification. 5 files did not contain a Declaration of Section 214 Status for one or more household members. 2 files contained utility allowance amounts that were not supported by the approved utility allowance schedule in effect at the time of certification. 4 files were missing proof of completed HSQ inspection. 2 files were missing proof of EIV being run in the last 12 months. 2 files were missing proof of new move-in tenants being pulled from of waiting lists. HUD regulations require Public Housing Authorities administering the Housing Choice Voucher Program to Obtain and document third‑party verification of income when available (24 CFR 5.236; HUD Handbook 4350.3). Maintain a signed Declaration of Section 214 Status for each assisted household member to establish eligibility for federal housing assistance (24 CFR 5.508). Ensure that utility allowance amounts used in rent calculations match the PHA’s current, HUD‑approved utility allowance schedule (24 CFR 982.517). Amount of Questioned Costs: None Context: The Authority's staff had inadequate internal controls over the Authority’s Housing Choice Voucher Program tenant eligibility process which has led to incomplete and inaccurate eligibility documentation. Specifically, we identified 1 instance where files lacked required third-party income verification. 5 files did not contain a Declaration of Section 214 Status for one or more household members. 2 files contained utility allowance amounts that were not supported by the approved utility allowance schedule in effect at the time of certification. 4 files were missing proof of completed HSQ inspection. 2 files were missing proof of EIV being run in the last 12 months. 2 files were missing proof of new move-in tenants being pulled from of waiting lists. Cause: These exceptions appear to result from insufficient internal controls over tenant file documentation, including inconsistent application of verification procedures and inadequate file review processes prior to certification and payment. Effect or Potential Effect: Failure to maintain complete and accurate tenant files increases the risk of improper eligibility determinations, incorrect rent and subsidy calculations, and noncompliance with HUD program requirements. Auditor‘s Recommendation: We recommend that the Authority strengthen its internal controls over tenant file documentation by implementing a standardized file review checklist as well as providing staff training on HUD verification and eligibility requirements. We also recommend conducting periodic supervisory reviews to ensure all required documentation is obtained, retained, and accurately reflected in HUD-50058 submissions. Grantee Response: Management acknowledges the findings and is following the auditor’s recommendation.

2022-001 Federal Agency: U. S. Department of Housing and Urban Development Federal program: Public and Indian Housing ALN#: 14.850 Award Period: 10/1/21-9/30/22 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: None Context: Testing of 25 tenant files identified an exception in 1 file as follows: ? 1 file did not contain proper identification verification for all members of the household. Cause: The Agency also did not obtain all required identification during the intake procedures. Effect: The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: None Recommendation: I recommend that the Agency continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions: Management agrees with this finding. We have reviewed the intake procedure and will continue to review recertifications.

2021-001 Federal Agency: U. S. Department of Housing and Urban Development Federal program: Housing Choice Vouchers CFDA #: 14.871 Award Period: 10/1/20-9/30/21 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: None Context: Testing of 25 tenant files identified an exception in 2 files as follows: ? 2 files did not contain a reasonable rent comparison required by HUD for Section 8 which is a comparison of similar properties to determine that a reasonable rent amount is paid for the property. ? 1 file contained a Release of Information and Lease Agreement that were not signed. Cause: The Agency did not obtain the required rent reasonableness comparison upon intake. The Agency also did not obtain all required signatures on certain forms. Effect: The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: None Recommendation: I recommend that the Agency continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions: Management agrees with this finding. We have reviewed the intake procedure and will continue to review recertifications.

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION