Finding 1167368 (2025-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2025-12-30

AI Summary

  • Core Issue: Tenant rent and assistance calculations were incorrect due to missing recertification paperwork.
  • Impacted Requirements: HUD mandates annual recertification of tenant income and expenses, with all documentation retained.
  • Recommended Follow-Up: Implement a review process where a second individual checks tenant income and expenses for accuracy.

Finding Text

Finding 2025-002: Compliance finding Information on universe: Total population was 57 tenant files. Sample Size: Ten tenant files were tested. Identification of repeat finding: Yes, 2024-002 Condition: Tenant rent and tenant assistance were not calculated correctly and or lacked recertification paperwork. Criteria: HUD requires that tenant income and expenses be recertified annually to determine tenant and HUD portions of rent and all recertification paperwork be kept in the file. Effect: Tenant portion and HUD portion of rent were inaccurate or couldn’t be supported. Context: Auditor selected tenant files to test the tenant eligibility, income and allowable expenses and noted multiple files in which the income and or expenses were not calculated correctly and or back up documentation was missing from the files. Cause: Oversight by property manager. Recommendation: A procedure be implemented to ensure that all tenant income and expenses are reviewed by a second individual to ensure accuracy.

Corrective Action Plan

Condition: Tenant rent and tenant assistance were not calculated correctly and or lacked recertification paperwork. Action Plan: Management will implement a formal procedure requiring that all tenant income and expense calculations be reviewed by the Director of Affordable Housing for final approval. This secondary review will verify accuracy, completeness, and compliance with HUD/PRAC requirements. Documentation of the review will be maintained in the tenant file. This procedure will be implemented immediately and applied to all future certifications and recertifications. Completion Date: 3/1/2026 Contact: Jackie Oliveira-Director of Affordable Housing

Categories

Eligibility HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1167366 2025-002
    Material Weakness Repeat
  • 1167367 2025-004
    Material Weakness Repeat
  • 1167369 2025-004
    Material Weakness Repeat
  • 1167370 2025-003
    Material Weakness Repeat
  • 1167371 2025-003
    Material Weakness Repeat
  • 1167372 2025-005
    Material Weakness Repeat
  • 1167373 2025-005
    Material Weakness Repeat
  • 1167374 2025-006
    Material Weakness Repeat
  • 1167375 2025-006
    Material Weakness Repeat
  • 1167376 2025-007
    Material Weakness Repeat
  • 1167377 2025-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $3.45M