Finding Text
Statement of Condition: We reviewed 36 files (recertification, initial certification, and move-out files) for the fiscal year ended December 31, 2025. The selected files represent a sample of all files in the program. Criteria: HUD requires that certain criteria be met when determining tenant eligibility, selecting applicants from the waiting list, and calculating total tenant payments. Effect: We noted an instance in which total tenant payment was miscalculated. For the file in question, earnings from a brokerage account were included as income from assets. Because the tenant is taking regular withdrawals from the account, the withdrawals should be counted as income, rather than the account earnings. Tenant income was overstated, resulting in an overpayment of tenant rent by $250 per month. Cause: Property management did not convert the brokerage account from an asset to an income source when the tenant began taking regular withdrawals. Recommendation: Property management should properly identify income sources/asset sources when calculating total tenant payment. Views of responsible officials and corrective actions: The Organization agrees with the finding. Please refer to the corrective action plan on page 35.