Finding 585950 (2023-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-01-23
Audit: 13122
Organization: Dima Iv, Inc. (DE)

AI Summary

  • Issue: Incorrect contract rent was used in monthly housing assistance payment requests, leading to an underbilling of $3,090.
  • Trend: This problem arose from management relying on outdated contract rent and not reviewing the Form HUD 52670 regularly.
  • Recommendation: Implement a policy for an independent review of the Form HUD 52670 to ensure accurate contract rent is used.

Finding Text

During our 2023 audit, we noted that several of the monthly Housing Owner's Certification and Application for Housing Assistance Payments (Form HUD 52670) for the period October 1, 2022 through March 31, 2023 had the incorrect contract rent for several of its tenants. In accordance with HUD guidelines the proper approved contract rent should be used to request the monthly housing assistance payments. This occurred as a result of management requesting the old contract rent and not reviewing the monthly Form HUD 52670. Management subsequently discovered this when they implemented a new system in June 2023. This resulted in an under billing of $3,090 in housing assistance payments for the period mentioned above. We recommend that management establish a policy for someone other than the preparer to review the monthly Housing Owner's Certification and Application for Housing Assistance Payments (Form HUD 52670) to ensure the proper contract rent is being used in their request for housing assistance payments.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 9508 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $1.15M
14.195 Section 8 Housing Assistance Payments Program $44,218