Finding 1208414 (2025-003)

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 overpayment of subsidy from HUD. Cause of condition: The Organization processed annual recertifications for seven tenants on the same voucher as the gross rent increase. The gross increase amounts were improperly calculated based on the assistance payments before annual recertifications causing overpayment of subsidy for several months. Effect of condition: For seven tenants, the Organization received five to six months of incorrect 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. Views of Responsible Officials: Management agrees with the finding and will implement procedures to ensure that all adjustments made to the monthly billings are reviewed for accuracy before submission. Overpayment of subsidy will be repaid to HUD through adjustments to monthly billings.