Finding Text
Finding 2022-001: FALN 14.181 ? Supportive Housing for Persons with Disabilities Criteria: The Project?s tenant files are required to be maintained in accordance with HUD guidelines to ensure accurate calculations of tenant rent and rental subsidy. Statement of Condition: Certain tenant rent calculated on the Form 50059 and reported to HUD is inaccurate due to tenant files not being maintained in accordance with HUD guidelines. Cause of Condition: The Project?s internal controls to ensure tenant files are complete and that the calculation of tenant rent is accurate were not effective. Effect of Condition: Of the two (out of eight) tenant files sampled for the Project, we noted discrepancies in one tenant file between the information reported on the Form 50059 and the information in the file for the income and medical expenses to be reported for the tenant. This resulted in the tenant overpaying their share of the monthly rent by $125 per month. Identification of Repeat Finding: This finding is a repeat of finding 2021-001 noted in the audit for the year ended June 30, 2021. Recommendation: The design of the current controls should be reviewed to ensure tenant files are complete and accurate. The information in the files should support the data used in preparing the Form 50059 and calculating the corresponding tenant?s share of the rent. In addition, management should review all files and report any discrepancies to HUD in a timely manner. Views of Responsible Officials: Management agrees with the findings and will implement procedures to ensure tenant files are maintained in accordance with HUD guidelines.