Finding 499744 (2024-005)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-09-30
Audit: 322563
Organization: Facts-Sunrise, Inc. (RI)
Auditor: D'ambra CPA

AI Summary

  • Issue: Rental subsidy requests used outdated rents, leading to inaccuracies.
  • Requirement: HUD guidelines state subsidies must be based on the current gross rent.
  • Follow-up: Management plans to submit a retroactive subsidy request to address the $71,833 deficiency.

Finding Text

Condition: In processing the rental subsidy requests, the old rents were used instead of the correct rents; Criteria: the HUD occupancy handbook requires the tenant subsidy to be based on the gross rent allowed; Effect: the rental subsidy requests were deficient by $71,833; Cause: Management used the old approved rent and not the current approved rent in effect. Recommendation: Management should submit a retroactive subsidy request to correct the deficient rental subsidies. Management comment: Management will submit a retroactive subsidy request.

Corrective Action Plan

The housing department used the prior year rent while generating the current FY PRACs. The Finance Department has contracted our 3rd party processing vendor who will contact with HUD to determine the proper format for a retroactive PRAC.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $238,343