Finding 965899 (2023-002)

Finding: 2023-002 Program: U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811) and Capital Advance Criteria or specific requirement: Management is required to submit billings for housing assistance payments that agree to the agreed upon contract rental rates. Condition: Management did not submit billings for housing assistance payments that agree to the agreed upon contract rental rates. Cause: Authorization for the billing was granted to the third-party vendor for submission to HUD without verification that the billings for housing assistance payments agreed to the contract rental rates. Effect: Billings were submitted to HUD at incorrect amounts for multiple months during 2023. Payment was not provided for any excess billings submitted. Recommendation: We recommend that management of the Organization establish an additional supervisory review to be performed over the housing assistance payment billings prior to requesting funds from HUD. Views of responsible officials and planned corrective actions: Management is in agreement with the finding. See Corrective Action Plan.