2022-001 ? Eligibility - Tenant File Documentation Finding Type. Immaterial noncompliance; Significant deficiency in internal control over compliance (Eligibility) Federal program U.S. Department of Housing and Urban Development ? Supportive Housing for the Elderly (ALN# 14.157) Criteria. Under Section 202 of the National Housing Act of 1959, Project management is responsible for performing an examination of and obtaining support for items of income, assets, and expenses, for proper calculation of tenant assistance payments of applying residents, and annual recertification and calculation of such information thereafter, and for obtaining signed and properly completed forms. Condition. Out of a sample of 6 tenant files, we noted: 1) Two out of six instances where the resident's cash balance was verified using the ending balance; however, the 6 month average balance should have been used; 2) One out of six instances where the resident's medical expenses were improperly calculated; 3) One out of six instances where the tenant's security deposit and/or prorated rent were not disbursed to them in the required 30 days; 4) One out of six instances where there was no verification of pension income performed on the most recent recertification. Cause. Management does not appear to have sufficient internal control procedures in place to properly implement all of HUD's program requirements. Effect. As a result of this condition, certain tenant files did not contain all required supporting documentation. In addition, employees did not follow HUD guideline procedures, and/or did not properly calculate the tenant subsidy in HUD Form 50059. While there were no significant differences in the amount of subsidies allowed compared to subsidies received, the lack of effective internal controls could lead to future significant noncompliance. Questioned Costs. No costs are required to be questioned as a result of this finding, inasmuch as no unallowable expenditures were noted. Recommendation. We recommend that management should strengthen their current policies and follow a documented review process for all new and existing resident files and ensure that this review occurs on a timely basis. Further, we recommend that management ensure all proper supporting documentation is maintained in the residents' files, HUD guideline procedures be followed, and tenant subsidies be appropriately calculated. View of Responsible Officials. Management agrees with this comment and has prepared a corrective action plan.
2022-001 ? Eligibility - Tenant File Documentation Finding Type. Immaterial noncompliance; Significant deficiency in internal control over compliance (Eligibility) Federal program U.S. Department of Housing and Urban Development ? Supportive Housing for the Elderly (ALN# 14.157) Criteria. Under Section 202 of the National Housing Act of 1959, Project management is responsible for performing an examination of and obtaining support for items of income, assets, and expenses, for proper calculation of tenant assistance payments of applying residents, and annual recertification and calculation of such information thereafter, and for obtaining signed and properly completed forms. Condition. Out of a sample of 6 tenant files, we noted: 1) Two out of six instances where the resident's cash balance was verified using the ending balance; however, the 6 month average balance should have been used; 2) One out of six instances where the resident's medical expenses were improperly calculated; 3) One out of six instances where the tenant's security deposit and/or prorated rent were not disbursed to them in the required 30 days; 4) One out of six instances where there was no verification of pension income performed on the most recent recertification. Cause. Management does not appear to have sufficient internal control procedures in place to properly implement all of HUD's program requirements. Effect. As a result of this condition, certain tenant files did not contain all required supporting documentation. In addition, employees did not follow HUD guideline procedures, and/or did not properly calculate the tenant subsidy in HUD Form 50059. While there were no significant differences in the amount of subsidies allowed compared to subsidies received, the lack of effective internal controls could lead to future significant noncompliance. Questioned Costs. No costs are required to be questioned as a result of this finding, inasmuch as no unallowable expenditures were noted. Recommendation. We recommend that management should strengthen their current policies and follow a documented review process for all new and existing resident files and ensure that this review occurs on a timely basis. Further, we recommend that management ensure all proper supporting documentation is maintained in the residents' files, HUD guideline procedures be followed, and tenant subsidies be appropriately calculated. View of Responsible Officials. Management agrees with this comment and has prepared a corrective action plan.
2022-001 ? Eligibility - Tenant File Documentation Finding Type. Immaterial noncompliance; Significant deficiency in internal control over compliance (Eligibility) Federal program U.S. Department of Housing and Urban Development ? Supportive Housing for the Elderly (ALN# 14.157) Criteria. Under Section 202 of the National Housing Act of 1959, Project management is responsible for performing an examination of and obtaining support for items of income, assets, and expenses, for proper calculation of tenant assistance payments of applying residents, and annual recertification and calculation of such information thereafter, and for obtaining signed and properly completed forms. Condition. Out of a sample of 6 tenant files, we noted: 1) Two out of six instances where the resident's cash balance was verified using the ending balance; however, the 6 month average balance should have been used; 2) One out of six instances where the resident's medical expenses were improperly calculated; 3) One out of six instances where the tenant's security deposit and/or prorated rent were not disbursed to them in the required 30 days; 4) One out of six instances where there was no verification of pension income performed on the most recent recertification. Cause. Management does not appear to have sufficient internal control procedures in place to properly implement all of HUD's program requirements. Effect. As a result of this condition, certain tenant files did not contain all required supporting documentation. In addition, employees did not follow HUD guideline procedures, and/or did not properly calculate the tenant subsidy in HUD Form 50059. While there were no significant differences in the amount of subsidies allowed compared to subsidies received, the lack of effective internal controls could lead to future significant noncompliance. Questioned Costs. No costs are required to be questioned as a result of this finding, inasmuch as no unallowable expenditures were noted. Recommendation. We recommend that management should strengthen their current policies and follow a documented review process for all new and existing resident files and ensure that this review occurs on a timely basis. Further, we recommend that management ensure all proper supporting documentation is maintained in the residents' files, HUD guideline procedures be followed, and tenant subsidies be appropriately calculated. View of Responsible Officials. Management agrees with this comment and has prepared a corrective action plan.
2022-001 ? Eligibility - Tenant File Documentation Finding Type. Immaterial noncompliance; Significant deficiency in internal control over compliance (Eligibility) Federal program U.S. Department of Housing and Urban Development ? Supportive Housing for the Elderly (ALN# 14.157) Criteria. Under Section 202 of the National Housing Act of 1959, Project management is responsible for performing an examination of and obtaining support for items of income, assets, and expenses, for proper calculation of tenant assistance payments of applying residents, and annual recertification and calculation of such information thereafter, and for obtaining signed and properly completed forms. Condition. Out of a sample of 6 tenant files, we noted: 1) Two out of six instances where the resident's cash balance was verified using the ending balance; however, the 6 month average balance should have been used; 2) One out of six instances where the resident's medical expenses were improperly calculated; 3) One out of six instances where the tenant's security deposit and/or prorated rent were not disbursed to them in the required 30 days; 4) One out of six instances where there was no verification of pension income performed on the most recent recertification. Cause. Management does not appear to have sufficient internal control procedures in place to properly implement all of HUD's program requirements. Effect. As a result of this condition, certain tenant files did not contain all required supporting documentation. In addition, employees did not follow HUD guideline procedures, and/or did not properly calculate the tenant subsidy in HUD Form 50059. While there were no significant differences in the amount of subsidies allowed compared to subsidies received, the lack of effective internal controls could lead to future significant noncompliance. Questioned Costs. No costs are required to be questioned as a result of this finding, inasmuch as no unallowable expenditures were noted. Recommendation. We recommend that management should strengthen their current policies and follow a documented review process for all new and existing resident files and ensure that this review occurs on a timely basis. Further, we recommend that management ensure all proper supporting documentation is maintained in the residents' files, HUD guideline procedures be followed, and tenant subsidies be appropriately calculated. View of Responsible Officials. Management agrees with this comment and has prepared a corrective action plan.