Finding Text
2023-008 Rent Deposits
Criteria:
The Authority should take the steps necessary to ensure accuracy and completeness of all deposits.
Condition:
The Authority is currently under an investigation by the Office of Inspector General (OIG). It appears that
an employee was involved in fraudulent activities whilst collecting rent. The employee, when collecting rent in cash form would at times go back and void some of the receipts and pocket the rent. Per PHA, this went on for quite a few months during FY 2023.
Questioned Costs:
It is estimated that the questioned costs relating to these deposits can range from $43,654 to $83,009.
Effect:
The Authority’s deposits were mishandled by an employee.
Cause:
The origin of the problem appears to be the employee’s disregard for regulations and the Authority’s
lack of awareness concerning the daily collection of rent.
Recommendation:
I recommend that the administration continue its efforts to determine the appropriate course of action.
Management’s Response:
We have put in place several new practices to ensure the problem does not occur again. All office staff have been set up with passwords to access our rent collection programs. We can now tell who makes what transaction as they occur. We did not have that capability prior to the missing money. The Executive Director now looks at the Void log and the Rent Credit log at the end of each month to make sure all transactions are accounted for and valid. Unless the perpetrator comes up with a new and ingenious way to steal money from the DCHA, we feel confident we are covered. There is no possible way they will be able
to steal money again in the manner they did in this case.