Core Issue: Missing updated lease addendums in tenant files led to potential incorrect rent and utility calculations.
Impacted Requirements: Compliance with HUD's requirement for maintaining current lease addendums as per tenant Form 50059.
Recommended Follow-up: Ensure annual updates of lease addendums are obtained and documented for all tenant files to align with HUD certification.
Finding Text
Federal Agency Name: U.S. Department of Housing and Urban Development
Program Name: Section 202 Supportive Housing for the Elderly
Significant Deficiency
Assistance Listing 14.157
Criteria: The Department of Housing and Urban Development requires each facility to maintain updated lease addendums to reflect the most current rent and utility amounts per a tenant's Form 50059.
Condition: There was a lack of documentation of updated lease addendums from three tenant files tested.
Cause of Condition: Appropriate processes and procedures were not in place to ensure supervisory personnel obtained updated lease addendums.
Effect: The effects of the amount being calculated incorrectly are that the tenant could pay an incorrect amount (gross rent amount) and could also receive an incorrect assistance payment form HUD as a subsidy.
Context: There are no questioned costs associated with this finding.
Identification of Prior Year Audit Findings: 2022-001
Auditor's Recommendation: DSH management should annually obtain and update as needed lease addendums signed by the tenant in all tenant files that agree to each tenants HUD certification form.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the findings and has put in place a process to ensure all tenants have updated lease addendums.