Finding 1218340 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-06-24
Audit: 404599
Organization: Willow Glen Housing, Inc. (NC)

AI Summary

  • Core Issue: Incorrect social security benefits were used, leading to an understatement of tenant income and rent.
  • Impacted Requirements: HUD criteria for tenant eligibility and payment calculations were not met.
  • Recommended Follow-Up: Property management should ensure updated income sources are used for accurate tenant payment calculations.

Finding Text

Statement of Condition: We reviewed 5 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 wait list, and calculating total tenant payments. Effect: We noted an instance in which incorrect social security benefits were used in calculating total tenant payment. Tenant income was understated, resulting in an understatement of tenant rent by $13 per month. Cause: Property management did not use correct social security benefits in calculating total tenant payment.Recommendation: Property management should use updated income sources when calculating total tenant payment. Views of responsible officials and planned corrective actions: The Organization agrees with the finding. Please refer to the corrective action plan on page 34.

Corrective Action Plan

The Organization agrees with the finding. The file in question was corrected January 14, 2026.

Categories

Eligibility HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $4.46M
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $199,612