Finding 1208407 (2024-003)

Criteria: The Organization is required to make adjustments to monthly billings as a result of recertifications. Statement of Condition: The Organization did not properly adjust monthly billings as a result of recertification. Cause of condition: The Organization processed an adjustment to monthly billing as a correction of the rent for one month instead of a change in rental rate as a result of the annual recertification. Effect of condition: The Organization received the incorrect subsidy for one of its tenants for 12 months. Recommendation: The design of the current controls should be reviewed to ensure that all adjustments to monthly billings are reviewed before processing. The Organization should repay the overpayment of subsidy to HUD. Views of Responsible Officials: Management agrees with the finding and will implement procedures to ensure that all adjustments to monthly billing are reviewed to ensure they are processed correctly. Overpayment of the subsidy will be repaid to HUD through adjustments to monthly billing.