Finding Text
2022-002 Program Income
Program: 14.267 Continuum of Care Program
Criteria: Housing program tenants are required to pay up to 30% of their income for rent. Eligibility and rent determination evaluations are performed for new tenants before move-in and annually for existing tenants to determine their portion of rent to pay. In accordance with 2 CFR 200.307, program income (in this case, tenant rent) must be correctly determined and properly recorded in the accounting records.
Condition: For two out of 10 transactions tested, the amount of rent collected by The Center from the tenant was more than the amount determined on the Eligibility and Rent Determination form.
Cause: There is no process to regularly review tenant rent to ensure amounts collected are accurate and agree with the Eligibility and Rent Determination form.
Effect: One tenant overpaid their tenant portion of rent for a combined $44 during the fiscal year.
Questioned Costs: The conditions did not result in questioned costs greater than $25,000.
Context: Rent was overpaid by one tenant.
Repeat Finding: Yes; 2021-003.
Recommendation: The Center should develop a policy for handling underpayments and overpayments of tenant rent. Rent collected should be compared to the amount determined on the Eligibility and Rent Determination form on a monthly basis to review for inconsistencies and, when differences arise, they should be timely investigated and followed-up on with the appropriate corrective action, per the established policy.
Views of Responsible
Officials: Management agrees with the finding and a response is included in the corrective action plan.