Finding 1208399 (2024-004)

Criteria: The Organization’s tenant files are required to be maintained in accordance with HUD guidelines to ensure accurate calculations of tenant rent and rental subsidy. Statement of Condition: The Organization did not include all tenant assets in rent calculation on Form 50059. Cause of condition: The Organization did not pursue verification of tenant assets after initial tenant response. Effect of condition: Of the three tenant files sampled for the Organization, we noted discrepancies in one tenant file between the information reported on the Form 50059 and the information in the file for assets to be reported for the tenant. Tenant verified checking account was not included in the rent calculation on Form 50059 as the Organization was unable to obtain all six months of statements from tenant. Recommendation: The design of the current controls should be reviewed to ensure tenant assets are complete and accurate. The information in the files should support the tenant assets used in preparing the Form 50059 and calculating the corresponding tenant’s share of the rent. Views of Responsible Officials: Management agrees with the finding and will implement procedures to ensure tenant assets are verified in accordance with HUD guidelines.