Finding Text
Information on universe: Total population was 95 files.
Sample Size: 10 files were selected for testing.
Repeat Finding: No
Condition: Corrected HUD-50059-A’s were needed for several tenants in order to properly reflect the total tenant portion (TTP) and HUD portion of rent on the tenant’s annual recertification.
Criteria: HUD requires annual recertification on tenant income and expenses to determine the TTP of rent.
Effect: Income and expense calculations on the annual recertification were incorrectly calculated resulting in the TTP and HUD portions of rent being inaccurate.
Context: Auditor reviewed tenant files noting calculations were incorrect.
Cause: Error made by property manager.
Recommendation: A procedure be implemented to assess the level of complexity of each tenant file and have an appropriate person based on this level reviewing each file.