Finding 1208411 (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 PRAC billings as a result of completed recertifications, resulting in a large overpayment of subsidy from HUD. Cause of Condition: The Organization processed adjustments to monthly PRAC billings for eight tenants requesting subsidy for previous months under a new rate without also processing adjustments to return the previously received subsidy to HUD. Effect of Condition: For eight tenants, the Organization received one to eight months of excess subsidy. Recommendation: The design of the current controls should be reviewed to ensure adjustments made to the monthly billings are accurate before submission. Excess subsidy payments should be repaid to HUD. View of Responsible Officials: The Organization understands the finding and will implement procedures to ensure that all adjustments made to the monthly billings are reviewed for accuracy before submission. Overpayment of excess subsidy will be repaid to HUD through adjustments to monthly billings.