Finding 597051 (2022-002)

-
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-01-26

AI Summary

  • Core Issue: Incorrect calculations of tenant income were found in 3 out of 45 reviewed files.
  • Impacted Requirements: Compliance with the Public Housing Occupancy Guidebook regarding income calculation.
  • Recommended Follow-Up: Strengthen procedures for calculating tenant rent to prevent future errors.

Finding Text

2022-002: Statement of Condition ? For the Low Rent Public Housing program, we reviewed 40 tenant files (recertification files and new tenant files) for fiscal year ended June 30, 2022. We reviewed 5 files for tenant who moved out during the fiscal year ended June 30, 2022. The selected files represented a sample of all files in the two AMPS. We noted 2 instances in which social security income was incorrectly calculated and 1 instance in which net wages (instead of gross wages) were used 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 files referenced above, the calculations used an incorrect amount for social security benefits and wages. The net effect of these errors was to understate tenant rental income by $9 per month. Cause ? Incomplete procedures were followed in regards to calculating tenant income. Recommendation ? Procedures surrounding tenant rent calculation processes should be strengthened.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $1.13M
14.872 Public Housing Capital Fund $657,945
14.870 Resident Opportunity and Supportive Services - Service Coordinators $63,964