Finding Text
Questioned Costs: None. Criteria:The PHA must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. This HAP amount must be reflected on the HAP contract and HAP register. (24 CFR section 982.158 and 24 CFR part 982, subpart K).Condition: During our audit, we noticed on nine different occasions that the monthly HAP payment did not agree with what was reported on the HAP contracts. Context:The Authority has roughly 172 vouchers issued through out the fiscal year under examination which would translate to 2,061 housing assistance payment transactions for the year. Of these we reviewed 40 individual housing assistance payment transactions, and found 9 instances of noncompliance. Extrapolating the error rate we would assume a 22.5% error rate or 464 total payment issues. Cause: Internal controls were not in place to ensure that the HAP contracts agree with what is being paid out.Effect:The Authority over paid the HAP contracts resulting in them being out of compliance. Recommendations: Management should develop monitoring procedures to ensure that the HAP amount agrees to the HAP contractsManagement Views:Management Agrees. See corrective action plan.