Finding 1084815 (2024-001)

-
Requirement
P
Questioned Costs
$1
Year
2024
Accepted
2024-11-19

AI Summary

  • Core Issue: Incorrect calculation of social security income led to an understatement of tenant rent.
  • Impacted Requirements: Compliance with the Public Housing Occupancy Guidebook regarding income calculation.
  • Recommended Follow-Up: Strengthen procedures for tenant rent calculations to prevent future errors.

Finding Text

Statement of Condition – For the Low Rent Public Housing, we reviewed 40 tenant files (recertification files and new tenant files) for fiscal year ended March 31, 2024. We reviewed 14 files for tenants who moved out during the fiscal year ended March 31, 2024. The selected files represented a sample of all files in the three AMPS. We noted 1 instance in which social security income was incorrectly calculated in determining total tenant income. Criteria – Per the Public Housing Occupancy Guidebook (Section 3.9), “The gross amount of social security benefit income, prior to Medicare or other deductions, must be counted as income…”. Effect – For the file referenced above, outdated social security benefits were included in the calculation. As a result, total annual income was understated. The net effect of this error was an understatement of tenant rent of $29 per month. Cause – Incorrect procedures were followed in regards to calculating total tenant income. Recommendation – Procedures surrounding tenant rent calculation processes should be strengthened. Views of responsible officials and planned corrective actions – The Authority agrees with this finding. Please refer to the corrective action plan on page 78.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.850 Public Housing Operating Fund $2.54M
14.871 Section 8 Housing Choice Vouchers $2.33M
14.872 Public Housing Capital Fund $786,948
14.870 Resident Opportunity and Supportive Services - Service Coordinators $90,842
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $14,555
14.269 Hurricane Sandy Community Development Block Grant Disaster Recovery Grants (cdbg-Dr) $5,306