Finding 9653 (2023-001)

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Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-01-24
Audit: 13353
Organization: Heights Towers Services Company (TX)

AI Summary

  • Core Issue: Incorrect tenant income and expense amounts were used in rent calculations, leading to potential inaccuracies in HUD assistance.
  • Impacted Requirements: Controls for verifying tenant eligibility and reviewing rent calculations are not being effectively implemented.
  • Recommended Follow-Up: Management should complete a thorough review of all move-in tenant certifications and enhance staff training to ensure accuracy.

Finding Text

Findings reference number: 2023-001 Title and AL Number of Federal Program: Section 8 Housing Assistance (AL 14.195) Type of finding: Federal Award. Resolution Status: In progress Population size: N/A Sample size: N/A Repeat finding: No. Criteria: Controls should be in place so that all income, assets, expenses, deductions, family characteristics, and circumstances affecting family eligibility of level of assistance are verified, and tenant rent calculations are reviewed for accuracy. Statement of Condition: During our testing of eligibility, we found that incorrect amounts of tenant income and expenses were used in the computation of tenant rent and HUD assistance in three of the tenants selected for testing. Cause: The move-in certifications are not being thoroughly reviewed for accuracy. Effect: The amounts of tenant rent and HUD assistance may be understated or overstated. Noncompliance code: R Questioned costs: None. Reporting views of officials: Management agrees with the finding. The staff responsible for tenant certification is still being trained. Contract number: 114-11440. Context: The amounts of income and expenses used for calculation of tenant rent and HUD assistance did not match the amounts shown in the source documents provided by the tenant. Recommendation: Management should conduct a complete review of certification of all move-in tenants. Auditors' summary of auditee's comments: They are in agreement, and will conduct a periodic review of certifications. Completion date: 5/31/2024 Response: Management will conduct a review of the tenant rent and HUD assistance for all move-in tenants and prepare recertifications in case of errors. Training and experience will also improve the accuracy of the staff handling tenant certifications.

Corrective Action Plan

Audit Finding 2023-001: For three tenants selected for testing during the audit, incorrect amounts of tenant income and expenses were used in the computation of tenant rent and HUD assistance. Response: Management has prepared recertifications for the tenants found to have inaccurate calculations during the audit. Additionally, management will conduct a review of the tenant and HUD assistance for all move-in tenants and prepare recertifications in case of errors. Training and experience will also improve the accuracy of the staff handling tenant certifications. Responsible Party:Linda G. Holder, Vice President/COO/Agent, Houston Housing Management Corporation, 2211 Norfolk, Suite 614,Houston, TX 77098

Categories

HUD Housing Programs Eligibility 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 $6.60M
14.195 Section 8 Housing Assistance Payments Program $1.15M