Finding 1131620 (2024-002)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-04-16

AI Summary

  • Issue: Rent amounts charged to tenants did not match the reported figures on the 50058 forms, indicating noncompliance.
  • Requirements: Family income and composition must be reviewed annually, with adjustments made based on third-party verification documentation.
  • Follow-up: Management should implement monitoring procedures to ensure rent charges align with the 50058 forms, as outlined in their Corrective Action Plan.

Finding Text

Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third-party verification (24 CFR sections 960.253, 960.257, and 960.259). During our audit, we noticed on three different occasions that the monthly rent amount charged to the tenant did not agree with what was reported on the 50058 forms. The Authority has roughly 2,600 units month leased through out the fiscal year under examination which would translate to 2,600 rent charges for the year. Of these we reviewed 40 individual tenant transactions, and found 3 instances of noncompliance. Internal controls were not in place to ensure that the rent payments agree with what is being reported on the 50058. The Authority was not charging the proper rent amounts resulting in them being out of compliance. Management should develop monitoring procedures to ensure that the rent amount agrees to the 50058 forms. Management agrees with the finding, see Management's Corrective Action Plan.

Categories

Subrecipient Monitoring HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 555178 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.850 Public Housing Operating Fund $876,596
14.872 Public Housing Capital Fund $384,406
14.871 Section 8 Housing Choice Vouchers $383,621