Finding 587130 (2023-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-01-30

AI Summary

  • Core Issue: Tenant files lacked proper income recertification and verification, leading to incorrect rent charges.
  • Impacted Requirements: The Housing Authority failed to monitor tenant files and ensure accurate rent calculations.
  • Recommended Follow-Up: Implement a review process where a different employee checks tenant files for accuracy and compliance.

Finding Text

Criteria: The Housing Authority is responsible for calculating the tenant’s rents based on the tenant’s adjusted annual income and for verifying the tenant’s annual income. Condition: During the audit we noted that three of the tenant files tested were missing a recertification of income/tenant rent calculations, missing verification documents, and incorrect rent amounts entered into the accounting software. This resulted in improper tenant rent charges during the year. Cause: The Housing Authority did not adequately monitor the rent roll and tenant files to determine that tenant rents were accurate and that the current rent amount was entered into the accounting software. Effect or Potential Effect: Some tenants were charged inaccurate rent amounts during the year. Recommendation: The Housing Authority should have another employee review the tenant’s file and verify that the tenant’s file being properly maintained and that the tenant’s rent is calculated properly. The employee reviewing the files should be someone other than the employee performing the recertification.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 10688 2023-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.415 Rural Rental Housing Loans $951,818
14.850 Public and Indian Housing $67,056
10.427 Rural Rental Assistance Payments $36,169
14.872 Public Housing Capital Fund $15,059