Finding 404195 (2023-002)

2023-002 - Tenant Lease Addendums Federal Agency Name: U.S. Department of Housing and Urban Development Program Name: Section 202 Supportive Housing for the Elderly Significant Deficiency Assistance listing 14.157 Criteria: The Department of Housing and Urban Development requires each facility to maintain updated lease addendums to reflect the most current rent and utility amounts per a tenant's Form 50059. Condition: There was a lack of documentation of updated lease addendums from four tenant files tested. Cause of Condition: Appropriate processes and procedures were not in place to ensure supervisory personnel obtained updated lease addendums. Effect: The effects of the amount being calculated incorrectly are that the tenant could pay an incorrect amount (gross rent amount) and could also receive an incorrect assistance payment from HUD as a subsidy. Context: There are no questioned costs associated with this finding. Identification of Prior Year Audit Findings: 2022-001 Auditor's Recommendation: WP management should annually obtain and udpate as needed lease addendums signed by the tenant in all tenant files that agreee to each tenants HUD certification form. Viewes of Responsible Officials and Planned Corrective Actions: Management agrees with the findings and has put in place a process to ensure all tenants have updated lease addendums.