Finding Text
2022-007 FEDERAL COMPLIANCE - OVERPAYMENTS Federal Program Name: Housing Choice Voucher Program Catalog of Federal Domestic Assistance Number: 14.871 Federal Agency: U.S. Department of Housing and Urban Development Compliance Requirement: Allowable Costs Criteria: 2 CFR Part 200, Subpart E requires direct costs charged to grant programs be specifically identified with a particular cost objective. Condition: We noted overpayments to tenants and landlords totaling approximately $4,000 during FY22 with the errors carrying over to payments made during FY23. Cause: Through discussions with PHA management, it appears that these errors were due to incorrect effective dates being entered on form HUD-50058 during the recertification process. Currently, only new admissions are being subject to a supervisory review, while one is not being performed on interim and annual recertifications. Additionally, a Reconciliation Report is generated as part of the monthly check generation process that shows all changes that have been made to tenant information during the month. This report is not currently being reviewed. Effect and Questioned Costs: Incorrect amounts were paid to landlords and tenants. Repeat Finding: No Recommendation: We recommend that these overpayments be recouped from the landlords and tenants. Additionally, to prevent errors in the future, we recommend a supervisory review be performed on all interim and annual recertifications. Additionally, the ?Reconciliation Report? that is generated as part of the monthly check generation process should be reviewed to ensure all changes for the month are correct. Management?s Response: Each staff member has received training and has knowledge that effective dates for annual re-exams are to be for the 1st of the month Administrator is currently auditing all new admissions and random annual and interim reexaminations. Any errors found in this process are being corrected by caseworkers with Administrators help. Reconciliation report will be reviewed since audit. Funds have been recouped.