Finding 1216256 (2025-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-06-01

AI Summary

  • Core Issue: Several tenants were not recertified annually as required by HUD guidelines.
  • Impacted Requirements: Tenants must provide income information and pay 30% of adjusted income for rent; failure affects HUD subsidy accuracy.
  • Recommended Follow-Up: Hire and train more staff to address understaffing and improve documentation processes.

Finding Text

Finding 2025-002: Compliance finding Information on universe: Total population was 43 units. Sample Size: Five files were selected for testing. Identification of repeat finding: Yes, 2024-003 Condition: Several tenants were not recertified in accordance with HUD guidelines. Criteria: All tenants must be recertified annually. Tenants must provide all income information at recertification, tenants must pay 30% of their adjusted income as the tenant portion of rent. Effect: HUD subsidy may be inaccurate. Context: Auditor selected tenant files and discussed with the management agent that due to understaffing, there were difficulties in obtaining the appropriate documentation and therefore completing and correcting accurate 50059 forms. Cause: Lack of oversight by management agent. Recommendation: Continue to hire and train additional staff to fill the staffing shortages.

Corrective Action Plan

Plan: Please see below the process for obtaining correct documentation including 50059’s. 1. Notification: Tenants are notified in advance to submit required documentation. 2. Tenant Submission: Tenants provide updated income and household info 3. Verification: Property management verifies the submitted information (e.g., contacting employers, reviewing documents). 4. Rent Calculation: Rent is recalculated based on updated income and family composition, per HUD guidelines. 5. 50059 Form: Completing the 50059 form accurately is crucial. It documents eligibility, income, and rent calculations. Errors can lead to incorrect rent, delays, or compliance issues. 6. Finalizing Recertification: After verification and accurate completion of the 50059, tenants are informed of any rent changes. 7. Record-Keeping: All recertification documents, including the 50059 form, are filed for compliance and audit purposes. By ensuring that recertifications are done annually, all tenant information is updated, and 50059 forms are accurately completed, doing so maintains program compliance and ensure that tenants are paying the correct rent based on their current financial situation. This is critical not only for HUD compliance but also for ensuring that tenants receive the appropriate level of assistance. Completion Date: 7/1/2026 Contact: Jackie Oliveira-Director of Affordable Housing

Categories

HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1216255 2025-002
    Material Weakness Repeat
  • 1216257 2025-003
    Material Weakness Repeat
  • 1216258 2025-003
    Material Weakness Repeat
  • 1216259 2025-004
    Material Weakness Repeat
  • 1216260 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $4.82M