Finding 33138 (2022-002)

Finding Reference number: #2022-002 CFDA title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, CFDA No. 14.181 (Section 811 loan identification number 083-HD073- NP-WPD, year 2005; PRAC identification number KY36-Q021-001, year 2005) Auditor non-compliance code: R-Section 8 Program Administration Finding resolution status: Unresolved Universe population size: The universe population size is not applicable to the finding. Sample Size Information: The sample size is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat finding: No Statement of condition #2022-002: During the year ended March 31, 2022, the Property continued to receive PRAC subsidy payments for one resident for six months after the resident moved out of the Property. Criteria: Per HUD Handbook 4350.3, Chapter 8, the Property should not request PRAC subsidy for deceased residents past the month in which the death occurred. Effect or potential effect: The Property is not in compliance Section 2.4 of the PRAC regarding termination of housing assistance. Due to inadequate record keeping procedures, the Agent received unauthorized PRAC payments for six or more months for one former resident after the resident moved out of the Property. Cause: The Agent inadvertently failed to remove the former resident from the monthly PRAC subsidy requests after the resident moved out. Recommendation: The Agent should note resident move outs or deceased tenants on the monthly PRAC vouchers requests in a timely manner following the terminating event to avoid receiving unauthorized PRAC payments. Completion date: March 31, 2023 Management's response: The Agent concurs with the recommendation. The Agent will note resident move outs or deceased tenants on the monthly PRAC voucher requests in a timely manner following the terminating event to avoid receiving unauthorized PRAC payments. The Agent will reimburse HUD for the unauthorized PRAC payments received.