Audit 353506

Criteria: Organizations operating the Project Based Rental Assistance (PBRA) Program are required to maintain sufficient internal controls to ensure compliance with eligibility requirements. Condition: 1) Housing assistance and tenant payments for 7 of the 41 tenant files selected for testing were calculated incorrectly due to errors in the amounts used for income and/or medical expenses. 2) An incorrect asset code was used on Form HUD-50059 for 3 of the 41 tenant files selected for testing. These had no impact on the housing assistance and tenant payments. 3) The asset values for 3 of the 41 tenant files and interest income for 2 of the 41 tenant files selected for testing were not reported correctly on Form HUD-50059. These had no impact on the housing assistance and tenant payments. Cause: Sufficient internal control procedures to ensure that the information reported on Form HUD-50059 were entered properly did not exist. Effect: The housing assistance and tenant payments may potentially be incorrect. Auditor's Recommendation: We recommend that an internal control procedure be implemented to ensure that all HUD-50059 forms are completed accurately. Views of Responsible Officials and Planned Corrective Action: Management has corrected all audited recertifications with correct information. For those tenants where the corrections had an impact on the tenant rent and housing assistance payments, management has notified and conducted meetings with the residents. Management will also insert file clarification notes in those corrected files that the tenant files were corrected to ensure transparency and note that an administrative correction was conducted. Management will continue to utilize internal control procedures to ensure that information are calculated accurately and reported correctly in the future.

Criteria: Housing quality inspections must be performed at the time of the initial occupancy and at least annually thereafter to assure that the units are decent, safe, and sanitary. In addition, any needed repairs are completed timely. Condition: 1) 2 of the 41 units selected for testing were missing housing inspection reports performed at the time of initial occupancy. 2) 7 signed work orders selected for testing with the completion date and time were not available for review. 3) 2 work orders were not completed timely. Cause: Sufficient internal control procedures to ensure that all required inspections were performed and any needed repairs are completed timely did not exist. Effect: Housing could potentially not meet the requirement that it be decent, safe, and sanitary. Auditor's Recommendation: We recommend that an internal control procedure be implemented to ensure that all required inspections are performed, and any needed repairs are completed timely. In addition, all documentation as evidence of the completion of the work orders are maintained properly. Views of Responsible Officials and Planned Corrective Action: 1) Management will continue to work consistently to comply with performing all unit inspections within 30 days of lease date and properly document all unit inspections accordingly in the tenant file. 2) The maintenance supervisor will ensure that at completion of all work orders, the work order form must be filled out and signed by the maintenance technician. All complete work orders will be documented and filed at the Business Office each day. Before leaving the apartment, the maintenance staff will leave a carbon copy of the work order indicating what work was performed in the apartment. The maintenance supervisor will also ensure that all work orders coded as emergencies will be assigned to a technician in a timely manner and completed within 24 business hours.

Criteria: Organizations operating the Project Based Rental Assistance (PBRA) Program are required to maintain sufficient internal controls to ensure compliance with tenant utility allowances requirement. Condition: 7 of the 25 participants selected for testing had incorrect utility charges reported on the utility allowance determination worksheet. As a result, 1 of these 7 participants had an incorrectly calculated utility allowance. Cause: Sufficient internal control procedures to ensure that tenant utility allowances are properly established did not exist. Effect: Tenant utility allowance potentially not properly established. Auditor's Recommendation: We recommend that an internal control procedure be implemented to ensure accuracy of the data input into the utility allowance determination worksheet. View of Responsible Officials and Planned Corrective Action: Management will contact MassHousing and inform them of the incorrect utility allowance approval and provide supporting documentation to explain error. Management will follow guidance from MassHousing to resolve the discrepancy.

Criteria: Organizations operating the Project Based Rental Assistance (PBRA) Program are required to maintain sufficient internal controls to ensure compliance with eligibility requirements. Condition: 1) Housing assistance and tenant payments for 7 of the 41 tenant files selected for testing were calculated incorrectly due to errors in the amounts used for income and/or medical expenses. 2) An incorrect asset code was used on Form HUD-50059 for 3 of the 41 tenant files selected for testing. These had no impact on the housing assistance and tenant payments. 3) The asset values for 3 of the 41 tenant files and interest income for 2 of the 41 tenant files selected for testing were not reported correctly on Form HUD-50059. These had no impact on the housing assistance and tenant payments. Cause: Sufficient internal control procedures to ensure that the information reported on Form HUD-50059 were entered properly did not exist. Effect: The housing assistance and tenant payments may potentially be incorrect. Auditor's Recommendation: We recommend that an internal control procedure be implemented to ensure that all HUD-50059 forms are completed accurately. Views of Responsible Officials and Planned Corrective Action: Management has corrected all audited recertifications with correct information. For those tenants where the corrections had an impact on the tenant rent and housing assistance payments, management has notified and conducted meetings with the residents. Management will also insert file clarification notes in those corrected files that the tenant files were corrected to ensure transparency and note that an administrative correction was conducted. Management will continue to utilize internal control procedures to ensure that information are calculated accurately and reported correctly in the future.

Criteria: Housing quality inspections must be performed at the time of the initial occupancy and at least annually thereafter to assure that the units are decent, safe, and sanitary. In addition, any needed repairs are completed timely. Condition: 1) 2 of the 41 units selected for testing were missing housing inspection reports performed at the time of initial occupancy. 2) 7 signed work orders selected for testing with the completion date and time were not available for review. 3) 2 work orders were not completed timely. Cause: Sufficient internal control procedures to ensure that all required inspections were performed and any needed repairs are completed timely did not exist. Effect: Housing could potentially not meet the requirement that it be decent, safe, and sanitary. Auditor's Recommendation: We recommend that an internal control procedure be implemented to ensure that all required inspections are performed, and any needed repairs are completed timely. In addition, all documentation as evidence of the completion of the work orders are maintained properly. Views of Responsible Officials and Planned Corrective Action: 1) Management will continue to work consistently to comply with performing all unit inspections within 30 days of lease date and properly document all unit inspections accordingly in the tenant file. 2) The maintenance supervisor will ensure that at completion of all work orders, the work order form must be filled out and signed by the maintenance technician. All complete work orders will be documented and filed at the Business Office each day. Before leaving the apartment, the maintenance staff will leave a carbon copy of the work order indicating what work was performed in the apartment. The maintenance supervisor will also ensure that all work orders coded as emergencies will be assigned to a technician in a timely manner and completed within 24 business hours.

Criteria: Organizations operating the Project Based Rental Assistance (PBRA) Program are required to maintain sufficient internal controls to ensure compliance with tenant utility allowances requirement. Condition: 7 of the 25 participants selected for testing had incorrect utility charges reported on the utility allowance determination worksheet. As a result, 1 of these 7 participants had an incorrectly calculated utility allowance. Cause: Sufficient internal control procedures to ensure that tenant utility allowances are properly established did not exist. Effect: Tenant utility allowance potentially not properly established. Auditor's Recommendation: We recommend that an internal control procedure be implemented to ensure accuracy of the data input into the utility allowance determination worksheet. View of Responsible Officials and Planned Corrective Action: Management will contact MassHousing and inform them of the incorrect utility allowance approval and provide supporting documentation to explain error. Management will follow guidance from MassHousing to resolve the discrepancy.