Finding Text
S3800-010 Finding Reference Number ? 2022-002 S3800-011 Title and CFDA Number of Federal Program ? Section 202 Supportive Housing for the Elderly, Capital Advance, ALN 14.157 Section 202 Supportive Housing for the Elderly, Project Rental Assistance Contract, ALN 14.157 S3800-015 Type of Finding ? Federal Award Finding S3800-016 Finding Resolution Status ? In progress S3800-017 Information on Universe Population Size ? 19 PRAC units S3800-018 Sample Size Information ? 5 tenant files. Errors were found on 3 out of the 5 tenants tested. S3800-019 Identification of Repeat Finding and Finding Reference Number ? N/A S3800-020 Criteria ? Per HUD Handbook 4350.3 Rev-1, Chapter 7: Owners are responsible to obtain the original signature of the head, co-head, spouse, and all other adult members of the household on the HUD-50059 with the required data electronically generated by owner?s software package. In addition, Owners are required to maintain the copy with original signatures in the tenant file. Also, Owners must provide the tenant a new HUD-50059-A reflecting all changes in rents, utility allowances, total tenant payment, tenant rent and assistance payments. Also, Owners must implement approved rent changes on the effective date approved by HUD or the Contract Administrator. S3800-030 Statement of Condition ? On July 8, 2022, HUD approved the PRAC contract renewal effective June 6, 2022, with a contract rent increase from $765 to $795 for 19 units. During our audit, we noted two instances where a new HUD-50059-A form was not completed for the June 6, 2022 effective rent increase. In addition, we noted one instance where the HUD-50059-A form was effective December 15, 2021 upon move-in, and not signed by the tenant until February 8, 2022. S3800-032 Cause ? Management failed to obtain the appropriate signatures and maintain the copy with original signatures in the tenant file. S3800-033 Effect or Potential Effect ? The allocation of the contract rent between HUD assistance payment and tenant rent may be incorrect, and Sessions Village 202 may have collected the incorrect amounts from HUD and the tenants. S3800-035 Auditor Non-Compliance Code ? R (Section 8 Program Administration) S3800-037 FHA/Contract Number ? 171-EE015 S3800-038 Questioned Costs ? $0 S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Sessions Village 202 will complete new HUD-50059-A forms for each resident effective June 6, 2022, and contact their HUD account executive and determine the corrective action needed to revise the housing assistance payment vouchers. S3800-050 Context ? A sample of 5 tenant files were selected for testing from a population of 19 PRAC units. 2 out of the 5 selected tenant files did not include a new HUD-50059-A form that was completed when the rent increased from $765 to $795 effective June 6, 2022. 1 tenant file where the HUD-50059-A form was effective December 15, 2021 upon move-in, and not signed by the tenant until February 8, 2022. Our sample was a statistically valid sample. S3800-080 Recommendation ? We recommend Sessions Village 202 complete new HUD-50059-A forms for residents where the form was missing from their file. After the new HUD-50059-A forms are completed, we recommend Sessions Village 202 contact their HUD account executive and determine the corrective action needed to revise the housing assistance payment vouchers, if necessary. Also, we recommend staff involved in the tenant eligibility process review the requirements and revise their current internal controls over tenant eligibility needed to ensure the appropriate procedures are performed going forward. S3800-090 Auditor?s Summary of Auditee Comments on the Findings and Recommendations ? Sessions Village 202 obtained the new HUD-50059-A form effective June 6, 2022 for one of the residents where it was missing. The second resident has moved out of the community, and therefore they are unable to obtain the document. Sessions Village will contact their HUD account executive and determine the corrective action needed to revise the housing assistance payment vouchers. The Property Manager will implement controls to ensure the appropriate forms are completed correctly and are kept in the files going forward. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? September 30, 2023 S3800-150 Response ? Sessions Village 202 obtained the new HUD-50059-A form effective June 6, 2022 for one of the residents where it was missing. The second resident has moved out of the community, and therefore they are unable to obtain the document. Sessions Village will contact their HUD account executive and determine the corrective action needed to revise the housing assistance payment vouchers. The Property Manager will implement controls to ensure the appropriate forms are completed correctly and are kept in the files going forward. S3800-160 Contact Person First Name ? Ashley S3800-180 Contact Person Last Name ? Healey