Finding Text
Information or Universe Population Size: Population was 82 units.
Sample Size Information: 10 files were selected for testing.
Condition: Several tenant files had recertification errors related to income and/or expense verification/calculation.
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 could be 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 either verified correctly or calculated correctly.
Cause: Oversight by property manager.
Recommendation: A procedure be implemented to ensure that all tenant income and expenses are calculated correctly and that management performs reviews of the files at least annually.