Finding Text
Missing Receipt Support for MTW Public Housing Tenant Transactions (ALN 14.881)
Condition: A review of tenant files under the Moving to Work (MTW) Public Housing program found that while the tenant files themselves were complete, the Authority did not provide supporting documentation for certain rent receipts. In several instances, the rent amounts recorded in the receipt or rent register did not agree with the amounts reported on HUD Form 50058, and no receipt documentation was available to reconcile the difference.
Criteria: Under the MTW Operations Notice (85 FR 10232), 2 CFR §200.302, and HUD regulations at 24 CFR §960, public housing authorities must maintain complete and accurate records that support rent calculations, payments, and tenant eligibility. HUD Form 50058 must accurately reflect tenant rent obligations, and all payments must be properly documented and reconciled.
Cause: The Authority did not maintain adequate documentation to support rent receipts and reconcile them with HUD Form 50058 data.
Effect: The absence of receipt documentation impairs the Authority’s ability to demonstrate compliance with HUD requirements and increases the risk of rent misstatements, audit findings, and potential administrative sanctions.
Questioned Costs: $125,170
Recommendation: The Authority should implement procedures to ensure all rent receipts are supported by appropriate documentation and reconciled to HUD Form 50058, provide staff training on documentation and recordkeeping requirements, and conduct periodic internal reviews of tenant files to verify that all payment records are complete and accurate.
Reply and Corrective Action Plan: To address missing rent receipt documentation and inconsistencies with HUD Form 50058, the Authority will implement procedures to improve tenant file management, ensure all receipts are properly documented, and reconcile rent records to support accurate reporting and compliance.