Finding Text
Criteria: Organizations operating the Project Based Rental Assistance (PBRA) Program are required to maintain sufficient internal controls to ensure compliance with eligibility requirements.
Condition:
1) Housing assistance and tenant payments for 7 of the 41 tenant files selected for testing were calculated incorrectly due to errors in the amounts used for income and/or medical expenses.
2) An incorrect asset code was used on Form HUD-50059 for 3 of the 41 tenant files selected for testing. These had no impact on the housing assistance and tenant payments.
3) The asset values for 3 of the 41 tenant files and interest income for 2 of the 41 tenant files selected for testing were not reported correctly on Form HUD-50059. These had no impact on the housing assistance and tenant payments.
Cause: Sufficient internal control procedures to ensure that the information reported on Form HUD-50059 were entered properly did not exist.
Effect: The housing assistance and tenant payments may potentially be incorrect.
Auditor's Recommendation: We recommend that an internal control procedure be implemented to ensure that all HUD-50059 forms are completed accurately.
Views of Responsible Officials and Planned Corrective Action:
Management has corrected all audited recertifications with correct information. For those tenants where the corrections had an impact on the tenant rent and housing assistance payments, management has notified and conducted meetings with the residents. Management will also insert file clarification notes in those corrected files that the tenant files were corrected to ensure transparency and note that an administrative correction was conducted. Management will continue to utilize internal control procedures to ensure that information are calculated accurately and reported correctly in the future.