Audit 388921

Federal Agency: Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Assistance Listing Number: 14.181 Award Period: 2025 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance Criteria or specific requirement: Rent is to be adjusted accordingly with HUD PRAC Contract Renewals Condition: Tenant Assistance Payments requested were not adjusted during a tenant recertification resulting in total rent for that unit exceeding the rents approved by HUD. Context: During work preformed in the Special Tests requirement, it was noted that the rental rates being charges on HAP vouchers did not match the signed PRAC agreement provided by the client. Cause: Management oversight Effect: Total rents claimed for certain units exceeded the rent rates approved by HUD, in the amount of $27,744. Repeat Finding: No Recommendation: Adjust rental rates immediately, and request adjustment on next HAP Voucher to begin repayment. Ensure proper training of employees, prepare the budget worksheet as soon as possible and promptly read all correspondence for HUD and forward to management company. Views of responsible officials: There is no disagreement with the audit finding.