Allowability — Landlord Overpayments
Housing Voucher Cluster
Significant Deficiency in Internal Controls
Other Matter to Reported Under the Uniform Control
Condition: The Authority made numerous overpayments in HAP to landlords starting in the month of October2023. A variance
in HAP disbursements wa...
Allowability — Landlord Overpayments
Housing Voucher Cluster
Significant Deficiency in Internal Controls
Other Matter to Reported Under the Uniform Control
Condition: The Authority made numerous overpayments in HAP to landlords starting in the month of October2023. A variance
in HAP disbursements was noted by the Department of Housing and Urban Development (HUD), and upon further
investigation by management it was determined that the overpayment to landlords was not caught by staff when the original
disbursements were made.
Auditor Recommendations: The Authority should work on recapturing overpaid funds from landlords that have current tenant
agreements. The Authority should also monitor internal controls in place with the new software to make sure the accounting
software is functioning properly.
Action Taken: Upon discovering the overpayments to the landlords, HCV department promptly issued letters informing
them of the excess Housing Assistance Payment (HAP) received. The letter instructed the landlords to either repay the
overpaid amounts or have them recouped from future HAP payments. To date $142,824, has been successfully collected.
Cherly LaRock is responsible for overseeing the collection process, and a monthly report on the status of these
overpayments is submitted to the Board.
Additionally, the data transferred from HAB to Yardi was thoroughly reviewed and any issues that were identified during
review were promptly corrected.
Finally, a Yardi consultant was engaged to assist in the evaluating the PCI-IA HAP process within Yardi. With the
consultant's assistance, new procedures and controls have been established to streamline HAP payments and prevent
future overpayments to landlords.