Finding 1164703 (2025-003)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
$1
Year
2025
Accepted
2025-12-12

AI Summary

  • Core Issue: Incorrect calculation of tenant income led to an understatement of rent.
  • Impacted Requirements: Violated guidelines from 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 Program, we reviewed 40 tenant files (recertification files and new tenant files) for fiscal year ended March 31, 2025. We reviewed 13 files for tenants who moved out during the fiscal year ended March 31, 2025. The selected files represented a sample of all files in the three AMPS. We noted 1 instance in which income from wages was incorrectly calculated in determining total tenant income. Criteria – Per the Public Housing Occupancy Guidebook (Section 3), “Annual income refers to all amounts…, which are made on behalf of the family’s HOH…”. Effect – For the file referenced above, net wages, rather than gross wages, 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 $138 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 100.

Corrective Action Plan

The Authority agrees with the finding. This error was corrected in July, 2025. The Authority has conducted refresher training with staff members to emphasize the requirements to use gross wages when determining annual income. Supervisors will continue to review income verifications and have been directed to place additional focus on wage calculations during quality control checks. Updated internal checklists have been distributed to guide staff in verifying income amounts consistently.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

  • 1164702 2025-002
    Material Weakness Repeat
  • 1164704 2025-004
    Material Weakness Repeat
  • 1164705 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 PUBLIC HOUSING OPERATING FUND $3.61M
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $2.95M
14.872 PUBLIC HOUSING CAPITAL FUND $2.49M
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $97,605
14.269 HURRICANE SANDY COMMUNITY DEVELOPMENT BLOCK GRANT DISASTER RECOVERY GRANTS (CDBG-DR) $51,452
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $21,148