Finding 610569 (2022-001)

-
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2022-10-11

AI Summary

  • Core Issue: The Organization failed to recertify tenants on time, impacting compliance with HUD requirements.
  • Impacted Requirements: Annual tenant recertifications and timely submission of Housing Assistance Payments vouchers were not met.
  • Recommended Follow-Up: Implement timely tenant recertification processes to ensure compliance and accurate revenue reporting in the future.

Finding Text

Program: U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811). Federal Assistance Listing Number 14.181. ? Criteria or specific requirement: Per the Consolidated Audit Guide for Audits of HUD Programs Handbook, organizations who participate in HUD?s rent subsidy program are responsible for recertifying tenants annually in accordance with HUD requirements. ? Condition: The Organization did not recertify each tenant in a timely manner during the fiscal year under audit. Due to delays in recertification, the Organization did not record revenue based on updated calculations from Form 50059s. ? Effect: Inadequate controls and resources over this area of compliance resulted in the following conditions: o The Organization did not maintain current certifications for each tenant selected as part of our sample. o Housing Owner?s Certification and Application for Housing Assistance Payments vouchers were not submitted timely, causing a delay in final revenue being recorded for the fiscal year. ? Cause: Due to personnel issues and the continued impact of the COVID-19 pandemic, the tenant recertification process was delayed. ? Recommendation: The Organization should ensure compliance with HUD requirements as set forth in the Consolidated Audit Guide for Audits of HUD Programs Handbook. Tenant recertifications should be completed in a timely manner to ensure that there is no significant delay in reporting in future years. ? Views of responsible officials (and planning corrective actions): Management agrees with the recommendations provided.

Categories

HUD Housing Programs Reporting

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 $814,048
14.181 Supportive Housing for Persons with Disabilities $202,223