Finding Text
Finding 2023-001 – Housing Opportunities for Persons with AIDS Tenant Files – Eligibility – Rent Calculations
Noncompliance & Significant Deficiency
Housing Opportunities for Persons with AIDS Program – ALN #14.241, Grant Year 2022 & 2023
Condition & Cause:
We reviewed ten (10) Housing Opportunities for Persons with AIDS Tenant Files and noted three (3) files not in compliance, or 30%. There were two errors consisting of failure to correctly calculate tenant income, and one error where the Authority failed to complete an annual recertification. The income calculation and verification deficiencies were the result of employee error, and failure by the Agency to properly review and correct the errors. We were able to extrapolate the total potential misstatement and found it to be immaterial to the financial statements. However, due to the percentage of files not in compliance, we feel the Agency has a significant deficiency in this area.
Criteria:
The Code of Federal regulations, the Housing Authority’s Administrative Plan and specific HUD guidelines in documenting and maintaining Housing Opportunities for Persons with AIDS tenant files.
Effect: Improper calculation and documentation of tenant income can result in misstatement of the financial statements, improper calculation of HAP subsidy, and noncompliance with Federal provisions governing the Housing Opportunities for Persons with AIDS program.
Recommendation:
We recommend that the Agency conduct a thorough tenant file audit of existing tenants to determine whether there are additional deficiencies. We also recommend that the Agency increase their quality control review to adequately monitor compliance with local and federal regulations as it pertains to the maintenance of the tenant files.
Questioned Costs: None
Repeat Finding: No
Was sampling statistically valid? Yes