Finding 15867 (2022-001)

FINDING No. 2022-001: Section 202 - Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Total rent revenue from effective date through September 30, 2022. Sample Size Information: All monthly PRAC requests from effective date through September 30, 2022. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, a HUD approved rent change must be executed as of its effective date, and all earned revenue recorded in the correct period. Statement of Condition: The Project did not implement the HUD approved rent change to its monthly PRAC requests as of the July 1, 2022 effective date, resulting in a $13,155 omission. Cause: The Project did not follow HUD regulations for timely applying the gross rent change, resulting in an underpayment of PRAC for each unit. Effect or Potential Effect: The Project did not request $13,155 of PRAC funding in the audit period, nor record the receivable at year end. An audit adjustment was posted to reflect the correct PRAC revenue for the year. Auditor Non-Compliance Code: R ? Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendation has been adopted. Recommendation: The Project should comply with HUD regulations for executing the required rent change as of its effective date and all earned revenue recorded in the correct period. Response Indicator: Agree. Completion Date: 12/1/2022 Response: Management has provided additional training on HUD regulations, inclusive of the timely processing of authorized rent changes.