Finding Text
Finding 2025-004: Eligibility – Inconsistent Tenant Rent Across Documentation – Significant Deficiency Condition: During testing of tenant files, two instances where the tenant rent on the rent roll / rent change notice (Subsidy Adjustment Notice) did not agree to the tenant rent on the Tenant Income Certification (TIC). Criteria: Tenant rent and subsidy amounts must be consistent across all tenant file documentation, including the TIC, rent roll, and subsidy adjustment notices, in accordance with 24 CFR Part 982 and the HAP contract. Effect: This issue increases the risk of incorrect tenant rent, improper subsidy payments, and potential questioned costs. Cause: Inadequate internal controls and insufficient supervisory review to ensure agreement between related tenant documents. Recommendation: We recommend management establish a review process to ensure tenant rent amounts are reconciled and consistent across the TIC, rent roll, and all subsidy adjustment notices prior to submission to the public housing authority. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. Management will implement a secondary review process to reconcile tenant rent amounts across all documentation before finalizing rent changes or submitting files to the PHA.