Finding 588231 (2023-001)

-
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-02-05

AI Summary

  • Core Issue: A tenant file had a mathematical error in calculating household net income, affecting the tenant's rent share.
  • Impacted Requirements: Accurate computation of household net income is essential to ensure correct HUD subsidy amounts.
  • Recommended Follow-Up: Recompute the HUD subsidy for the affected tenant and adjust future monthly HUD billing accordingly.

Finding Text

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT - FINDING 2023-001: SECTION 223(f), Assistance Listing Number 14.155 Condition: One of the tenant files tested contained a mathematical error in computing the household net income in the process of computing the tenant share of monthly rent. Criteria: The household net income should be computed accurately based on tenant information provided. Effect: The Project may have collected more HUD subsidy on this tenant than it should have. Context: A sample of tenant files was selected for testing household net income in the process of computing the tenant share of monthly rent. The test found a calculation that was not in compliance. The details and results of the sample are as follows: Population - 23, Dollars - N/A, Sample - 3, Dollars - N/A, Not in Compliance - 1, Dollars - N/A, Questioned Costs - $120, Cause: There was an error in interpreting some information provided by the tenant during the recertification process. Recommendation: The Project should recompute the HUD subsidy from this tenant and make an adjustment on a future monthly HUD billing. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The HUD subsidy will be recomputed using the proper household income. If necessary, the excess amount received to date will reduce a future monthly HUD billing. Questioned Costs - Department of Housing and Urban Development - $120, Non-compliance code - R

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.83M
14.195 Section 8 Housing Assistance Payments Program $226,501