Finding 52901 (2022-002)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-08-20

AI Summary

  • Core Issue: Section 8 tenant payments were not entered into the system for several months, leading to inaccurate reporting.
  • Impacted Requirements: Supporting documents did not reconcile with the general ledger, falsely indicating $500,154 owed.
  • Recommended Follow-Up: Ensure monthly entry of Section 8 payments into the receivable system to maintain accurate records.

Finding Text

Timely Posting of Housing Assistance Payments and Adjustments Criteria: Supporting document should be accurate and reconcile to the general ledger accounts Condition/Context: The monthly Section 8 tenant payments and adjustments were not entered into the receivable system for several months. This resulted in an amount being reported in the supporting documentation as being owed for Section 8 payments when no amounts were owed. Cause: Payment information was not into the receivable system timely. Effect: The support for the receivable account in the general ledger did not match the supporting documentation. The supporting documentation indicated $ 500,154 was owed Carlisle Senior Housing Associates for unpaid Section 8 Program payments. After the report was corrected no amount was owed. Questioned Costs: None Repeat Finding: Not a repeat finding. Recommendation: Payments received for the Section 8 program should be entered into the receivable system on a monthly basis.

Corrective Action Plan

Two operating systems at the building were not compatible after upgrades. The property is now using the latest version of Microsoft 365 allowing for continuous compatibility with TRAC?s system and Real Page property management software. This will ensure payments are received and entered timely.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 629343 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.195 Section 8 Housing Assistance Payments Program $994,931
14.191 Multifamily Housing Service Coordinators $36,610