Finding 556070 (2024-003)

- Repeat Finding
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-04-28

AI Summary

  • Core Issue: Several tenants were not recertified as required by HUD guidelines.
  • Impacted Requirements: Annual recertification of all tenants and submission of complete income information.
  • Recommended Follow-Up: Hire and train more staff to address staffing shortages and improve oversight.

Finding Text

Information on universe: Total population was 41 units. Sample Size: 5 files were selected for testing. Identification of repeat finding: Yes, 2023-002 Condition: Several tenants were not recertified in accordance with HUD guidelines. Criteria: All tenants must be recertified annually. Tenants must provide all income information at recertification. Effect: HUD subsidy may be overstated. Context: Auditor selected tenant files and discussed with the management agent that due to understaffing, there were difficulties in obtaining the appropriate documentation and therefore completing accurate 50059 forms. Cause: Lack of oversight by management agent. Recommendation: Continue to hire and train additional staff to fill the staffing shortages.

Corrective Action Plan

Please see below the process for obtaining correct documentation including 50059’s. 1. Notification: Tenants are notified in advance to submit required documentation. 2. Tenant Submission: Tenants provide updated income and household info 3. Verification: Property management verifies the submitted information (e.g., contacting employers, reviewing documents). 4. Rent Calculation: Rent is recalculated based on updated income and family composition, per HUD guidelines. 5. 50059 Form: Completing the 50059 form accurately is crucial. It documents eligibility, income, and rent calculations. Errors can lead to incorrect rent, delays, or compliance issues. 6. Finalizing Recertification: After verification and accurate completion of the 50059, tenants are informed of any rent changes. 7. Record-Keeping: All recertification documents, including the 50059 form, are filed for compliance and audit purposes. By ensuring that recertifications are done annually, all tenant information is updated, and 50059 forms are accurately completed, doing so maintains program compliance and ensure that tenants are paying the correct rent based on their current financial situation. This is critical not only for HUD compliance but also for ensuring that tenants receive the appropriate level of assistance. Completion Date: 6/30/2025 Contact: Jackie Oliveira-Director of Affordable Housing

Categories

HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 556069 2024-002
    - Repeat
  • 556071 2024-002
    - Repeat
  • 556072 2024-003
    - Repeat
  • 556073 2024-004
    Significant Deficiency Repeat
  • 556074 2024-004
    Significant Deficiency Repeat
  • 556075 2024-005
    Significant Deficiency Repeat
  • 556076 2024-005
    Significant Deficiency Repeat
  • 556077 2024-006
    Significant Deficiency
  • 556078 2024-006
    Significant Deficiency
  • 556079 2024-007
    Material Weakness
  • 556080 2024-007
    Material Weakness
  • 1132511 2024-002
    - Repeat
  • 1132512 2024-003
    - Repeat
  • 1132513 2024-002
    - Repeat
  • 1132514 2024-003
    - Repeat
  • 1132515 2024-004
    Significant Deficiency Repeat
  • 1132516 2024-004
    Significant Deficiency Repeat
  • 1132517 2024-005
    Significant Deficiency Repeat
  • 1132518 2024-005
    Significant Deficiency Repeat
  • 1132519 2024-006
    Significant Deficiency
  • 1132520 2024-006
    Significant Deficiency
  • 1132521 2024-007
    Material Weakness
  • 1132522 2024-007
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $4.82M