Finding 545 (2023-001)

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Requirement
E
Questioned Costs
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Year
2023
Accepted
2023-10-24

AI Summary

  • Core Issue: Multiple tenant files had recertification errors, leading to inaccurate rent calculations.
  • Impacted Requirements: HUD mandates annual recertification of tenant income and expenses.
  • Recommended Follow-Up: Implement a procedure to ensure accurate calculations of tenant income and expenses.

Finding Text

Information or Universe Population Size: Population was 93 units. Sample Size Information: 15 files were selected for testing. Condition: Multiple tenant files had recertification errors that resulted in corrections being needed. 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. 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. Cause: Oversight by property manager. Recommendation: A procedure be implemented to ensure that all tenant income and expenses are calculated correctly.

Corrective Action Plan

Completed corrective action: Manager completed correction and new HUD 50059A recertification's corrected for June 30, 2023. Ongoing Corrective Action: Additional file review after recertifications and move-ins. Additional trainings for Income VS Assets for all managers.

Categories

Eligibility HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $5.50M