Finding 42751 (2022-001)

Finding: 2022-001 ? 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: Lack of documentation of updated lease addendums from tenant files. ? Updated lease addendums not available for 4 of 5 tenant files tested Cause: Appropriate processes and procedures were not in place to ensure supervisory personnel obtained updated lease addendums. Effect: The effects of the amount being calculated incorrect are that the tenant could pay an incorrect amount (gross rent amount) and the tenant could also receive an incorrect assistance payment from HUD as a subsidy. Questioned Costs: N/A Identification of Prior Year Audit Findings: N/A Auditor?s Recommendation: Dalton Senior Housing, Inc. d/b/a Whitfield Commons (?DSH?) should obtain and keep updated lease addendums in all tenant files. Views 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. See Management?s Corrective Action Plan on the following page.