Finding Text
Condition: The Organization keyed in the incorrect rent amount on its monthly PRAC voucher, resulting in an overpayment of PRAC in the amount of $16,660. Criteria: Under the Section 811 PRAC program, the project gross potential rent is determined by the HUD approved rent schedule. Monthly PRAC voucher requests must use the HUD approved rental rates. Cause: There was an inadvertent miskeying of the contract rent when requesting monthly vouchers during the year. Effect: The project requested more project rental assistance than they were allowed based on the HUD approved rent schedule. Auditor's Recommendation: The Organization should adjust the next monthly voucher to return the overpaid tenant assistance payments. The Organization should also review monthly PRAC voucher requests for accuracy, particularly at renewal dates, paying particular attention to any changes in HUD approved rental rates. Views of Responsible Officials and Planned Corrective Actions: The Organization has made the necessary accounting adjustments for the year ended June 30, 2025 on the September 2025 voucher request.