2022-001 U.S. Department of Housing and Urban Development 14.195 - Section 8 Housing Assistance Bank Reconciliation Condition: The Operating bank account was not reconciled in a timely manner, for the month of December 31, 2022. Criteria: Bank reconciliations should be prepared at the end of each month, for each checking account and agreed to the general ledger. In addition, the cash balance maintained in general ledger, should be monitored, prior to the issuance of checks. Cause: Transfer of cash from the savings account, was not processed prior to December 31, 2022. Effect: The cash balance maintained in the general ledger for the operating account, was overdrawn by $29,628 as of December 31, 2022. Recommendation: I recommend that bank reconciliation should be reconciled to the general ledger on a monthly basis and cash balance maintained in general ledger, should be monitored, prior to the issuance of checks. Performing these procedures will reduce the risk of an overdrawn or overstated bank balance, during the fiscal year. Views of Responsible Officials and Planned Corrective Actions: Has been corrected.
2022-002 U.S. Department of Housing and Urban Development 14.195 - Section 8 Housing Assistance Condition: Move-ins: 1. In one (1) instance out of seven (7) tenant files tested, Form HUD-50059 was not signed by the tenant. 2. In one (1) instance out of seven (7) tenant files tested, Form HUD-50059 was not signed by management. 3. In one (1) instance out of seven (7) tenant files tested, the ?Notice and Consent for the Release of Information? (Form 9887), was not maintained in the tenant?s file. 4. In one (1) instance out of seven (7) tenant files tested, the ?Applicant?s/Tenant?s Consent for the Release of Information (Form 9887-A), was not maintained in the tenant?s file. Recertification: 1. In one (1) instance out of nineteen (19) tenant files tested, the Pension benefit per the Form HUD-50059 was $486 per month; however, the supporting documentation was for $493 per month. 2. In one (1) instance out of nineteen (19) tenant files tested, there was no supporting documentation, to support the Federal wage income of $9,360. 3. In five (5) instances out of nineteen (19) tenant files tested, the Lease Amendment form was not signed by management. 4. In one (1) instance out of nineteen (19) tenant files tested, the ?Initial Notice ? Section 202/8 or Section 202 PACs?, was not signed by the tenant. 5. In one (1) instance out of nineteen (19) tenant files tested, the ?Initial Notice ? Section 202/8 or Section 202 PACs?, did not have a witness signature. Move-out: 1. In one (1) instance out of four (4) tenant files tested, the security deposit was not refunded within the 30 day timeframe. Criteria: HUD 4350.3, REV-1, Change 4, Ch. 5, 5-12.B. Timeframe for Conducting Verifications. Verifications should be conducted at the following three times. 1. Owners must verify income, assets, expenses, and deductions and all eligibility requirements prior to move-in. 2. Owners must verify each family?s income, assets, expenses, and deductions as part of the annual recertification process. 3. Owners must verify changes in income, allowances, or family characteristics reported between annual recertification. 29 HUD Handbook 4350.3, Rev 1, Change 4, Ch. 5, 5-31, F. In all cases, the computer generated HUD-50059 must include the required tenant signatures and owner signatures prior to submitting the data to the Contract Administrator or HUD. The owner must document within the file why the signature(s) was not obtained and, if applicable, when the signature(s) will be obtained. 24 CFR ?891.400(b): The Owner is responsible for all management functions. These functions include selection and admission of tenants, required reexaminations of incomes for households occupying assisted units or residential spaces, collection of tenant payments, termination of tenancy and eviction. HUD Handbook 4350.3, REV-1, Change 4, Ch 6 6-18 C. Within 30 days after the move-out date (or shorter time if required by state and/or local laws), the owner must either: 1. Refund the full security deposit plus accrued interest to a tenant that does not owe any amounts under the lease; or 2. Provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repair, along with a statement of the tenant?s rights under state and local laws. In addition, prior to the tenant occupying the unit the following procedures should be performed: 1. Obtain the tenant?s signature on the Notice and Consent for the Release of Information (Form 9887) and maintained the document in the tenant?s file. 2. The management agent should sign the Applicant's/Tenant's Consent to the Release of Information (Form 9887-A), in addition to obtaining the tenant signature, and maintain the document in the tenant?s file. 3. The management agent must determine the tenant?s rent based on the proper verification of the tenant?s income. Effect: The tenant files were not always in compliance with the guidelines established by the Department of Housing and Urban Development. Cause: Required documents were not always maintained in the tenant file, in addition to being properly authorized by the tenant and/or owner. Context: Tenant files tested consisted of move-ins, recertifications and move-outs. Population Size Number: 149 Tenants Files. Dollar Amount: $ 1,740,415. Sample Number: 30 Tenants Files. Dollar Amount: $ 350,419. Items Not in Compliance Number: 10 Tenant Files. Dollar Amount: $ 116,806. Questioned Costs There was no questioned costs. Recommendation: In order to be in compliance with guidelines established by the Department of Housing and Urban Development, I recommend that Alpha Tower process applicants and tenants, including recertification of tenants in accordance with guidelines established by the Department of Housing and Urban Development prior to the tenant occupying the unit. In addition, security deposits should be refunded with interest, within 30-day after the effective move-out date. By performing these procedures, the risk of incurring questioned costs will be significantly reduced. Views of Responsible Officials and Planned Corrective Actions: Corrected going forward.
2022-001 U.S. Department of Housing and Urban Development 14.195 - Section 8 Housing Assistance Bank Reconciliation Condition: The Operating bank account was not reconciled in a timely manner, for the month of December 31, 2022. Criteria: Bank reconciliations should be prepared at the end of each month, for each checking account and agreed to the general ledger. In addition, the cash balance maintained in general ledger, should be monitored, prior to the issuance of checks. Cause: Transfer of cash from the savings account, was not processed prior to December 31, 2022. Effect: The cash balance maintained in the general ledger for the operating account, was overdrawn by $29,628 as of December 31, 2022. Recommendation: I recommend that bank reconciliation should be reconciled to the general ledger on a monthly basis and cash balance maintained in general ledger, should be monitored, prior to the issuance of checks. Performing these procedures will reduce the risk of an overdrawn or overstated bank balance, during the fiscal year. Views of Responsible Officials and Planned Corrective Actions: Has been corrected.
2022-002 U.S. Department of Housing and Urban Development 14.195 - Section 8 Housing Assistance Condition: Move-ins: 1. In one (1) instance out of seven (7) tenant files tested, Form HUD-50059 was not signed by the tenant. 2. In one (1) instance out of seven (7) tenant files tested, Form HUD-50059 was not signed by management. 3. In one (1) instance out of seven (7) tenant files tested, the ?Notice and Consent for the Release of Information? (Form 9887), was not maintained in the tenant?s file. 4. In one (1) instance out of seven (7) tenant files tested, the ?Applicant?s/Tenant?s Consent for the Release of Information (Form 9887-A), was not maintained in the tenant?s file. Recertification: 1. In one (1) instance out of nineteen (19) tenant files tested, the Pension benefit per the Form HUD-50059 was $486 per month; however, the supporting documentation was for $493 per month. 2. In one (1) instance out of nineteen (19) tenant files tested, there was no supporting documentation, to support the Federal wage income of $9,360. 3. In five (5) instances out of nineteen (19) tenant files tested, the Lease Amendment form was not signed by management. 4. In one (1) instance out of nineteen (19) tenant files tested, the ?Initial Notice ? Section 202/8 or Section 202 PACs?, was not signed by the tenant. 5. In one (1) instance out of nineteen (19) tenant files tested, the ?Initial Notice ? Section 202/8 or Section 202 PACs?, did not have a witness signature. Move-out: 1. In one (1) instance out of four (4) tenant files tested, the security deposit was not refunded within the 30 day timeframe. Criteria: HUD 4350.3, REV-1, Change 4, Ch. 5, 5-12.B. Timeframe for Conducting Verifications. Verifications should be conducted at the following three times. 1. Owners must verify income, assets, expenses, and deductions and all eligibility requirements prior to move-in. 2. Owners must verify each family?s income, assets, expenses, and deductions as part of the annual recertification process. 3. Owners must verify changes in income, allowances, or family characteristics reported between annual recertification. 29 HUD Handbook 4350.3, Rev 1, Change 4, Ch. 5, 5-31, F. In all cases, the computer generated HUD-50059 must include the required tenant signatures and owner signatures prior to submitting the data to the Contract Administrator or HUD. The owner must document within the file why the signature(s) was not obtained and, if applicable, when the signature(s) will be obtained. 24 CFR ?891.400(b): The Owner is responsible for all management functions. These functions include selection and admission of tenants, required reexaminations of incomes for households occupying assisted units or residential spaces, collection of tenant payments, termination of tenancy and eviction. HUD Handbook 4350.3, REV-1, Change 4, Ch 6 6-18 C. Within 30 days after the move-out date (or shorter time if required by state and/or local laws), the owner must either: 1. Refund the full security deposit plus accrued interest to a tenant that does not owe any amounts under the lease; or 2. Provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repair, along with a statement of the tenant?s rights under state and local laws. In addition, prior to the tenant occupying the unit the following procedures should be performed: 1. Obtain the tenant?s signature on the Notice and Consent for the Release of Information (Form 9887) and maintained the document in the tenant?s file. 2. The management agent should sign the Applicant's/Tenant's Consent to the Release of Information (Form 9887-A), in addition to obtaining the tenant signature, and maintain the document in the tenant?s file. 3. The management agent must determine the tenant?s rent based on the proper verification of the tenant?s income. Effect: The tenant files were not always in compliance with the guidelines established by the Department of Housing and Urban Development. Cause: Required documents were not always maintained in the tenant file, in addition to being properly authorized by the tenant and/or owner. Context: Tenant files tested consisted of move-ins, recertifications and move-outs. Population Size Number: 149 Tenants Files. Dollar Amount: $ 1,740,415. Sample Number: 30 Tenants Files. Dollar Amount: $ 350,419. Items Not in Compliance Number: 10 Tenant Files. Dollar Amount: $ 116,806. Questioned Costs There was no questioned costs. Recommendation: In order to be in compliance with guidelines established by the Department of Housing and Urban Development, I recommend that Alpha Tower process applicants and tenants, including recertification of tenants in accordance with guidelines established by the Department of Housing and Urban Development prior to the tenant occupying the unit. In addition, security deposits should be refunded with interest, within 30-day after the effective move-out date. By performing these procedures, the risk of incurring questioned costs will be significantly reduced. Views of Responsible Officials and Planned Corrective Actions: Corrected going forward.