Finding 1208418 (2025-004)

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, resulting in a large overpayment of subsidy from HUD. Cause of condition: The Organization processed an adjustment to monthly PRAC billings for one tenant 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 one tenant, the Organization received excess subsidy for five months. Recommendation: The design of the current controls should be reviewed to ensure that all adjustments to monthly billings are reviewed before submission. 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 billings are reviewed to ensure they are processed correctly. Overpayment of the subsidy will be repaid to HUD through adjustments to monthly billings.