Information on Universe Population Size: Population size was 16 files.
Sample Size Information: Five tenant files were tested.
Identification of Repeat Finding: Repeat finding. See 2022-001.
Criteria: HUD requires verification of income for eligibility and annual re-certification and rent calculation.
Condition: Tenant eligibility, rent and tenant assistance were not correct.
Cause: Oversight by property manager.
Effect: The HUD and tenant portions of rent are not accurate.
Context: Auditor selected tenant files to test the tenant eligibility, income and allowable expenses and noted several files in which the income and/or expenses were not calculated correctly.
Recommendation: A procedure be implemented to ensure that all tenant income and expenses are calculated correctly.
Information on Universe Population Size: Population size was 16 files.
Sample Size Information: Five tenant files were tested.
Identification of Repeat Finding: Repeat finding. See 2022-001.
Criteria: HUD requires verification of income for eligibility and annual re-certification and rent calculation.
Condition: Tenant eligibility, rent and tenant assistance were not correct.
Cause: Oversight by property manager.
Effect: The HUD and tenant portions of rent are not accurate.
Context: Auditor selected tenant files to test the tenant eligibility, income and allowable expenses and noted several files in which the income and/or expenses were not calculated correctly.
Recommendation: A procedure be implemented to ensure that all tenant income and expenses are calculated correctly.
Information on Universe Population Size: Population size was 16 files.
Sample Size Information: Five tenant files were tested.
Identification of Repeat Finding: Repeat finding. See 2022-002.
Criteria: HUD requires that third party verification, confirmations and back up documentation for tenant annual re-certifications be maintained in the files. Additionally, HUD requires certain tenant forms and signatures to be kept in the tenant files.
Condition: Some tenant files were missing required documents.
Cause: Oversight by property manager.
Effect: Auditor could not verify the tenant income and expense amounts in the annual re-certifications at the time of testing.
Context: Auditor selected tenant files to test the tenant income and allowable expenses and noted several files in which the EIV forms were not present for income verification and/or income and/or expenses could not be recalculated due to lack of back-up documentation.
Recommendation: A procedure be implemented to ensure that the Project remains in compliance with its regulatory agreement and all required documentation is present in the files.
Information on Universe Population Size: Population size was 16 files.
Sample Size Information: Five tenant files were tested.
Identification of Repeat Finding: Repeat finding. See 2022-002.
Criteria: HUD requires that third party verification, confirmations and back up documentation for tenant annual re-certifications be maintained in the files. Additionally, HUD requires certain tenant forms and signatures to be kept in the tenant files.
Condition: Some tenant files were missing required documents.
Cause: Oversight by property manager.
Effect: Auditor could not verify the tenant income and expense amounts in the annual re-certifications at the time of testing.
Context: Auditor selected tenant files to test the tenant income and allowable expenses and noted several files in which the EIV forms were not present for income verification and/or income and/or expenses could not be recalculated due to lack of back-up documentation.
Recommendation: A procedure be implemented to ensure that the Project remains in compliance with its regulatory agreement and all required documentation is present in the files.
Information on Universe Population Size: Audit procedures throughout tenant file testing and revenue testing.
Sample Size Information: Audit procedures throughout tenant file testing and revenue testing.
Identification of Repeat Finding: Not a repeat finding.
Criteria: HUD requires all managers to have the appropriate training and all HAP vouchers be complete.
Condition: Tenant files with mistakes were not corrected and HAP vouchers do not reflect all tenants.
Cause: Turnover at the management agent and software conversion.
Effect: The HAP vouchers are not accurate causing a large receivable from HUD.
Context: Auditor noted that files with prior findings and issues did not have a corrected 50059 but instead a recertification. The auditor also noted that the HAP vouchers continued not to be paid by HUD and were missing several tenants. This is a result of a couple things. One being turnover and lack of knowledge/training for the new property manager. The new property manager has continued to take courses and trainings but did not possess the necessary knowledge for the corrections to be made. The second issue was a software conversion in which the new software was unable to transmit the vouchers to HUD. At year end there were still tenants not being submitted on the vouchers.
Recommendation: The project manager should continue to attend trainings and work with HUD and the software company to solve the issues with the rental software.
Information on Universe Population Size: Audit procedures throughout tenant file testing and revenue testing.
Sample Size Information: Audit procedures throughout tenant file testing and revenue testing.
Identification of Repeat Finding: Not a repeat finding.
Criteria: HUD requires all managers to have the appropriate training and all HAP vouchers be complete.
Condition: Tenant files with mistakes were not corrected and HAP vouchers do not reflect all tenants.
Cause: Turnover at the management agent and software conversion.
Effect: The HAP vouchers are not accurate causing a large receivable from HUD.
Context: Auditor noted that files with prior findings and issues did not have a corrected 50059 but instead a recertification. The auditor also noted that the HAP vouchers continued not to be paid by HUD and were missing several tenants. This is a result of a couple things. One being turnover and lack of knowledge/training for the new property manager. The new property manager has continued to take courses and trainings but did not possess the necessary knowledge for the corrections to be made. The second issue was a software conversion in which the new software was unable to transmit the vouchers to HUD. At year end there were still tenants not being submitted on the vouchers.
Recommendation: The project manager should continue to attend trainings and work with HUD and the software company to solve the issues with the rental software.
Information on Universe Population Size: Population size was 16 files.
Sample Size Information: Five tenant files were tested.
Identification of Repeat Finding: Repeat finding. See 2022-001.
Criteria: HUD requires verification of income for eligibility and annual re-certification and rent calculation.
Condition: Tenant eligibility, rent and tenant assistance were not correct.
Cause: Oversight by property manager.
Effect: The HUD and tenant portions of rent are not accurate.
Context: Auditor selected tenant files to test the tenant eligibility, income and allowable expenses and noted several files in which the income and/or expenses were not calculated correctly.
Recommendation: A procedure be implemented to ensure that all tenant income and expenses are calculated correctly.
Information on Universe Population Size: Population size was 16 files.
Sample Size Information: Five tenant files were tested.
Identification of Repeat Finding: Repeat finding. See 2022-001.
Criteria: HUD requires verification of income for eligibility and annual re-certification and rent calculation.
Condition: Tenant eligibility, rent and tenant assistance were not correct.
Cause: Oversight by property manager.
Effect: The HUD and tenant portions of rent are not accurate.
Context: Auditor selected tenant files to test the tenant eligibility, income and allowable expenses and noted several files in which the income and/or expenses were not calculated correctly.
Recommendation: A procedure be implemented to ensure that all tenant income and expenses are calculated correctly.
Information on Universe Population Size: Population size was 16 files.
Sample Size Information: Five tenant files were tested.
Identification of Repeat Finding: Repeat finding. See 2022-002.
Criteria: HUD requires that third party verification, confirmations and back up documentation for tenant annual re-certifications be maintained in the files. Additionally, HUD requires certain tenant forms and signatures to be kept in the tenant files.
Condition: Some tenant files were missing required documents.
Cause: Oversight by property manager.
Effect: Auditor could not verify the tenant income and expense amounts in the annual re-certifications at the time of testing.
Context: Auditor selected tenant files to test the tenant income and allowable expenses and noted several files in which the EIV forms were not present for income verification and/or income and/or expenses could not be recalculated due to lack of back-up documentation.
Recommendation: A procedure be implemented to ensure that the Project remains in compliance with its regulatory agreement and all required documentation is present in the files.
Information on Universe Population Size: Population size was 16 files.
Sample Size Information: Five tenant files were tested.
Identification of Repeat Finding: Repeat finding. See 2022-002.
Criteria: HUD requires that third party verification, confirmations and back up documentation for tenant annual re-certifications be maintained in the files. Additionally, HUD requires certain tenant forms and signatures to be kept in the tenant files.
Condition: Some tenant files were missing required documents.
Cause: Oversight by property manager.
Effect: Auditor could not verify the tenant income and expense amounts in the annual re-certifications at the time of testing.
Context: Auditor selected tenant files to test the tenant income and allowable expenses and noted several files in which the EIV forms were not present for income verification and/or income and/or expenses could not be recalculated due to lack of back-up documentation.
Recommendation: A procedure be implemented to ensure that the Project remains in compliance with its regulatory agreement and all required documentation is present in the files.
Information on Universe Population Size: Audit procedures throughout tenant file testing and revenue testing.
Sample Size Information: Audit procedures throughout tenant file testing and revenue testing.
Identification of Repeat Finding: Not a repeat finding.
Criteria: HUD requires all managers to have the appropriate training and all HAP vouchers be complete.
Condition: Tenant files with mistakes were not corrected and HAP vouchers do not reflect all tenants.
Cause: Turnover at the management agent and software conversion.
Effect: The HAP vouchers are not accurate causing a large receivable from HUD.
Context: Auditor noted that files with prior findings and issues did not have a corrected 50059 but instead a recertification. The auditor also noted that the HAP vouchers continued not to be paid by HUD and were missing several tenants. This is a result of a couple things. One being turnover and lack of knowledge/training for the new property manager. The new property manager has continued to take courses and trainings but did not possess the necessary knowledge for the corrections to be made. The second issue was a software conversion in which the new software was unable to transmit the vouchers to HUD. At year end there were still tenants not being submitted on the vouchers.
Recommendation: The project manager should continue to attend trainings and work with HUD and the software company to solve the issues with the rental software.
Information on Universe Population Size: Audit procedures throughout tenant file testing and revenue testing.
Sample Size Information: Audit procedures throughout tenant file testing and revenue testing.
Identification of Repeat Finding: Not a repeat finding.
Criteria: HUD requires all managers to have the appropriate training and all HAP vouchers be complete.
Condition: Tenant files with mistakes were not corrected and HAP vouchers do not reflect all tenants.
Cause: Turnover at the management agent and software conversion.
Effect: The HAP vouchers are not accurate causing a large receivable from HUD.
Context: Auditor noted that files with prior findings and issues did not have a corrected 50059 but instead a recertification. The auditor also noted that the HAP vouchers continued not to be paid by HUD and were missing several tenants. This is a result of a couple things. One being turnover and lack of knowledge/training for the new property manager. The new property manager has continued to take courses and trainings but did not possess the necessary knowledge for the corrections to be made. The second issue was a software conversion in which the new software was unable to transmit the vouchers to HUD. At year end there were still tenants not being submitted on the vouchers.
Recommendation: The project manager should continue to attend trainings and work with HUD and the software company to solve the issues with the rental software.