Finding Text
Finding 2023-003: Overpayments to Landlords (Significant Deficiency)
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Housing Voucher Cluster
Federal Assistance Listing Number: 14.871/14.879
Compliance Requirement: Allowable Costs
Criteria: Per 24 CFR Section 982, PHAs must determine that rent paid to an owner is
reasonable at the time of initial leasing and during the term of the contract.
Condition: The Authority made a second $3 million disbursement of payments to landlords
during June 2023.
Context: Payments to landlords during the beginning of June 2023 amounted to approximately
$3.4 million. Around June 15, 2023, an additional $3.4 million was disbursed. The overpayments
were recovered in November 2023.
Effect: The Authority spent an additional $3.4 million on HAP during June 2023.
Cause: The financial reporting system disbursed an additional set of landlord payments during
June 2023.
Repeat Finding: This is not a repeat finding.
Recommendation: The Authority should review and enhance its internal controls to ensure that
duplicate payments of HAP to landlords are not made.
Views of Responsible Officials: The Authority agrees with the finding.