Finding 1208427 (2025-003)

Criteria: The Organization is required to use Form 50059-A to process a move out in the event of a deceased tenant, retroactive to the earlier of 14 days after the tenant’s death or the date the unit was vacated. Any overpayment of subsidy that was paid on the behalf of the deceased tenant must be repaid to HUD. Statement of Condition: The Organization did not use the appropriate date when processing Form 50059-A for a deceased tenant. The resulting overpayment of subsidy was not repaid to HUD. Cause of Condition: The Organization used the date of unit vacancy as the effective move-out date. The Organization was not aware that tenant had passed away until months after date of death. Effect of Condition: Over three months of subsidy were received on behalf of the tenant. Recommendation: The design of the current controls should be reviewed to ensure proper vacancy dates are utilized on the monthly vouchers when a move out is processed. The overpayment of subsidy received should be repaid to HUD. View of Responsible Officials: Management agrees with the finding and will implement procedures to ensure that all move out adjustments processed are utilizing the proper vacancy date. The overpayment of subsidy will be repaid to HUD through adjustments to monthly billing.