Finding Text
Noncompliance/Material Weakness:
Auditing Finding 2024-003 – Review of Tenant File Calculations for Errors
Identification of the federal program: Assistance Listing Number 14.239 Home Investment Partnership Program
Condition: From the selections of tenant-based rental assistance for testing, the auditor noted two files with incorrect calculations of rental assistance.
Criteria: Under the requirements of the major federal program tenant rental assistance is calculated using tenant asset and income verification procedures with a calculation applied to determine the level of assistance based on a tenant’s ability to pay. Incorrect calculations lead to variances from rental assistance allowed under the terms of the agreement.
Cause: AHNI’s Assistant Property Manager is the primary team member responsible for assembling the tenant files and providing the information for requesting rental and security deposit assistance. The tenant files were processed without a review and the auditor noted no monitoring procedure in place to ensure calculations are performed and documented in accordance with the terms of the agreements.
Effect or potential effect: Incorrect calculations could potentially impact future funding from government agencies.
Questioned costs: None (immaterial)
Context: From a sample of 26 rental/security deposit transactions (selected as individual tenant files), auditor noted 2 with incorrect or questioned calculations. On one file, employment income was omitted due to an error, which resulted a higher amount of rental assistance received than calculated by the auditor. On the second file, the calculated rental assistance was less than auditor calculation.
Recommendation: We recommend management implement processes and controls to have a review of each tenant certification to ensure rental amounts are calculated correctly.
View of responsible officials and planned corrective actions: Management agrees with the finding. See attached letter.