Finding Text
Information on universe: Total population was 33 units.
Sample Size: 5 files were selected for testing.
Condition: Corrected HUD-50059-A’s were needed for several tenants in order to properly reflect the total tenant portion (TTP) and HUD portion of rent.
Criteria: HUD requires annual recertification on tenant income and expenses to determine the TTP of rent.
Effect: Income calculation on the annual recertification was incorrectly calculated, overstating the amount to be subsidized by HUD.
Context: Auditor reviewed tenant files noting calculations were incorrect.
Cause: Error made by property manager.
Recommendation: A procedure be implemented to ensure that the Project remains in compliance by having an internal review done, by an appropriate individual, to ensure all required calculations in the tenant files are accurate.