Finding 2023-001
significant deficiency
- Program
- SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM (14.195)
- Compliance requirement
- Other
- FAC record
- FY2023 audit on fac.gov
Finding text from the filing
Findings reference number: 2023-001 TItle and AL Number of Federal Program: Section 8 Housing Assistance (AL 14.195) Type of finding: Internal control Resolution Status: In process Population size: N/A Sample size: N/A Repeat finding: No Condition: Recertifications for tenants were not properly updated in the rent roll. Criteria: The accounting records should reflect the proper breakout between HUD and tenant rent. Effect: The breakout of total rental income between HUD subsidy and tenant rent was incorrect and had to be adjusted. Context: Upon recertification, the tenant and HUD rent were adjusted and both tenant and HUD were paying the correct amounts per the recertification, however the accounting records (rent roll) was not updated for the recertification. The total rent was correct, however reclassifications had to be made in the general ledger to properly reflect the payments made. Cause: Oversight by the property manager. Noncompliance code: S. Internal control deficiency Questioned costs: None. Reporting views of officials: Management agrees with the finding. Contract number: 114-11304. Recommendation: Upon recertification, rent roll should be updated to properly reflect the breakout between tenant and HUD rent. Views of Responsible Officials and Planned Corrective Actions:: Management is in agreement and have accepted the proposed reclassification journal entries to record in the general ledger. The property manager will be trained to update the accounting records upon recertification. Completion date: 6/30/2024