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 2021. The Organization mistakenly requested these
adjustments twice, and therefore, received subsidy revenue from HUD in excess of what they were entitled
to. As of December 31, 2023, the Organization had not contacted HUD to rectify the situation.
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. The Organization should have contacted HUD to evaluate if there is an obligation
to return the excess rent subsidies that were received during the year ended December 31, 2022.
Cause: Human error during 2022 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 during the year ended December 31, 2022.
Recommendation: We recommend the Organization contact HUD to evaluate if there is an obligation to
return the excess rent subsidies that were received during the year ended December 31, 2022.