Finding Text
Statement of Condition – For the Low Rent Public Housing, we reviewed 40 tenant files (recertification files and new tenant files) for fiscal year ended March 31, 2023. We reviewed 16 files for tenants who moved out during the fiscal year ended March 31, 2023. The selected files represented a sample of all files in the three AMPS. We noted 1 instance in which social security income was incorrectly calculated in determining total tenant income.
Criteria – Per the Public Housing Occupancy Guidebook (Section 3.9), “The gross amount of social security benefit income, prior to Medicare or other deductions, must be counted as income…”.
Effect – For the file referenced above, net social security benefits were included in the calculation. As a result, total annual income was understated and medical allowance deduction was understated. Because the tenant was paying flat rent, the net effect of this error was $0 per month.
Cause – Incorrect procedures were followed in regards to calculating total tenant income.
Identification of a repeat finding – This is a repeat finding from the immediate previous audit, 2022-003.
Recommendation – Procedures surrounding tenant rent calculation processes should be strengthened.
Views of responsible officials and planned corrective actions – The Authority agrees with this finding. Please refer to the corrective action plan on page 78.