Finding Text
FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT
Department of Housing and Urban Development Finding, 2023-001: Major Program: Supportive Housing for the Elderly (Section 202 Capital Advance - Accumulated Balance), Federal Assistance Listing Number 14.157
STATEMENT OF CONDITION
One tenant file, out of six files reviewed, incorrectly accounted for tenant’s income, which resulted in undercharging the tenant $22 a month in rent. CRITERIA
HUD Handbook 4350.3 Revision 1 for HUD Subsidized Multifamily Housing Programs requires owners to properly calculate tenants rent derived from the appropriate documents on file for tenants.
EFFECT OF CONDITION
The tenant was improperly undercharged $264 of rent for the year ended December 31, 2023. HUD was overcharged $264 of additional rental assistance payments for the year ended December 31, 2023.
CONTEXT
During audit fieldwork, six tenant files from a statistically valid sample were examined for compliance with tenant eligibility criteria and HUD lease requirements. Of the six tenant files examined, income for one tenant was incorrectly accounted for, resulting in the wrong calculation of tenant rent and HUD tenant assistance payments.
CAUSE OF CONDITION
Management mistakenly did not ensure the proper income was used to calculate the tenant’s rent.
RECOMMENDATION
The auditor recommends ensuring all tenants’ paperwork is thoroughly reviewed and accurately used in the calculation of the tenant’s required monthly rent and HUD’s tenant assistance payments.
VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS
The Project will be billing the tenant for the $264 and reimbursing HUD for additional tenant assistance payments of $264 due to the Project.