Finding 1208421 (2025-004)

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 incorrectly calculated tenant payment during annual recertification. Cause of condition: The Organization used the incorrect social security income on the Form 50059 for one tenant leading to an overpayment of subsidy. Effect of condition: An overpayment of subsidy was received on behalf of tenant for five months during the year. Recommendation: The design of the current controls should be reviewed to ensure that information used on Form 50059 in the calculation of tenant payments should agree to the supporting documentation maintained in tenant files. Overpayment of subsidy should be repaid to HUD. Views of Responsible Officials: Management agrees with the finding and will implement procedures to ensure that information used on Form 50059 in the calculation of tenant payments should agree to the supporting documentation maintained in tenant files. The overpayment of subsidy will be repaid to HUD through adjustments to monthly billings.