Finding Text
Finding 2024-001: Compliance finding
Finding status: In process
Information or Universe Population Size: Population was 15 units.
Sample Size Information: 5 files were selected for testing.
Indication of repeat finding: Yes, 2023-001
Criteria: HUD requires each tenant be recertified annually. The recertification includes
calculating the tenant income and expenses to arrive at the tenant rent and HUD rent.
Condition: Several tenant files had recertification errors that resulted in corrections
being needed.
Cause: Lack of oversight by property manager.
Effect: Tenant and HUD portions of rent were inaccurate.
Context: Auditor selected tenant files to test the tenant eligibility, income and allowable
expenses and noted multiple files in which the income and/or expenses were not
calculated correctly.
Recommendation: A procedure be implemented to require a second person review
tenant files for proper income and expense calculations.