Finding Text
Condition: During the year ended December 31, 2022, the Organization requested retroactive adjustments on their 2022 Housing Assistance Payment (HAP) voucher requests to account for the increase in contract rent per unit that was not appropriately requested in the prior year. The Organization mistakenly requested these adjustments twice, and therefore, received subsidy revenue from HUD in excess of what they were entitled to. Criteria: Internal controls should be in place to ensure the Organization is utilizing the proper contract rental rate in the monthly HAP vouchers, and to ensure the amounts received per tenant do not exceed the maximum amount allowed. Cause: Human error in incorporating the contract rent increase adjustments into the monthly HAP voucher requests submitted to HUD. Effect: The Organization requested and received $12,098 more of HUD rent subsidies than they were entitled to. Recommendation: We recommend the Organization implement procedures to ensure that subsidy amounts requested from HUD do not exceed the maximum amount, and to ensure any contract rent related adjustments are only requested for once.