Finding 2022-002: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Number: 14.871, 14.879 & 14.EHV Noncompliance a?? N. Special Tests and Provisions a?? Reasonable Rent Non-Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions - Section 8 Housing Choice Vouchers Material Weakness in Internal Control over Compliance for Special Tests and Provisions - Mainstream Vouchers & Emergency Housing Vouchers must state the method used by the PHA to determine that the rent to owner is reasonable in comparison to rent for other comparable unassisted units. The PHA determination must consider unit attributes such as the location, quality, size, unit type, and age of the unit, and any amenities, housing services, maintenance, and utilities provided by the owner. The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition: Based upon inspection of the rent reasonableness documentation provided to us during the time of audit and discussions with management, it could not be determined with any certainty that rent to owner on newly leased units to the Section 8 Housing Choice Vouchers, Mainstream Vouchers, and Emergency Housing Vouchers is reasonable in accordance with the Authority?s policy at initial leasing and during the term of the contract. Context: Four (4) units were selected from the new move-in list and the rent to those units were to be determined reasonable in accordance with the Authority?s policy at time of leasing and during the term of the contract. It was determined that rent to four (4) out of four (4) units selected could not be determined reasonable in accordance with the Authority?s policy. Known Questioned Costs: $22,822 Cause: There is a significant deficiency in the Section 8 Housing Choice Vouchers Program and a material weakness in the Mainstream Vouchers and Emergency Housing Vouchers Programs in internal controls over the compliance for the special tests and provisions type of compliance related to reasonable rent. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance and the Mainstream Vouchers and Emergency Housing Vouchers Programs are in material non-compliance with the special tests and provisions type of compliance related to reasonable rent. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. View of Responsible Officials and Corrective Actions: The Authority has recognized the deficiencies in the Housing Voucher Cluster Programs and will implement internal control procedures that will ensure compliance of federal regulations.
Finding 2022-002: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Number: 14.871, 14.879 & 14.EHV Noncompliance a?? N. Special Tests and Provisions a?? Reasonable Rent Non-Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions - Section 8 Housing Choice Vouchers Material Weakness in Internal Control over Compliance for Special Tests and Provisions - Mainstream Vouchers & Emergency Housing Vouchers must state the method used by the PHA to determine that the rent to owner is reasonable in comparison to rent for other comparable unassisted units. The PHA determination must consider unit attributes such as the location, quality, size, unit type, and age of the unit, and any amenities, housing services, maintenance, and utilities provided by the owner. The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition: Based upon inspection of the rent reasonableness documentation provided to us during the time of audit and discussions with management, it could not be determined with any certainty that rent to owner on newly leased units to the Section 8 Housing Choice Vouchers, Mainstream Vouchers, and Emergency Housing Vouchers is reasonable in accordance with the Authority?s policy at initial leasing and during the term of the contract. Context: Four (4) units were selected from the new move-in list and the rent to those units were to be determined reasonable in accordance with the Authority?s policy at time of leasing and during the term of the contract. It was determined that rent to four (4) out of four (4) units selected could not be determined reasonable in accordance with the Authority?s policy. Known Questioned Costs: $22,822 Cause: There is a significant deficiency in the Section 8 Housing Choice Vouchers Program and a material weakness in the Mainstream Vouchers and Emergency Housing Vouchers Programs in internal controls over the compliance for the special tests and provisions type of compliance related to reasonable rent. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance and the Mainstream Vouchers and Emergency Housing Vouchers Programs are in material non-compliance with the special tests and provisions type of compliance related to reasonable rent. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. View of Responsible Officials and Corrective Actions: The Authority has recognized the deficiencies in the Housing Voucher Cluster Programs and will implement internal control procedures that will ensure compliance of federal regulations.
Finding 2022-002: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Number: 14.871, 14.879 & 14.EHV Noncompliance a?? N. Special Tests and Provisions a?? Reasonable Rent Non-Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions - Section 8 Housing Choice Vouchers Material Weakness in Internal Control over Compliance for Special Tests and Provisions - Mainstream Vouchers & Emergency Housing Vouchers must state the method used by the PHA to determine that the rent to owner is reasonable in comparison to rent for other comparable unassisted units. The PHA determination must consider unit attributes such as the location, quality, size, unit type, and age of the unit, and any amenities, housing services, maintenance, and utilities provided by the owner. The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition: Based upon inspection of the rent reasonableness documentation provided to us during the time of audit and discussions with management, it could not be determined with any certainty that rent to owner on newly leased units to the Section 8 Housing Choice Vouchers, Mainstream Vouchers, and Emergency Housing Vouchers is reasonable in accordance with the Authority?s policy at initial leasing and during the term of the contract. Context: Four (4) units were selected from the new move-in list and the rent to those units were to be determined reasonable in accordance with the Authority?s policy at time of leasing and during the term of the contract. It was determined that rent to four (4) out of four (4) units selected could not be determined reasonable in accordance with the Authority?s policy. Known Questioned Costs: $22,822 Cause: There is a significant deficiency in the Section 8 Housing Choice Vouchers Program and a material weakness in the Mainstream Vouchers and Emergency Housing Vouchers Programs in internal controls over the compliance for the special tests and provisions type of compliance related to reasonable rent. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance and the Mainstream Vouchers and Emergency Housing Vouchers Programs are in material non-compliance with the special tests and provisions type of compliance related to reasonable rent. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. View of Responsible Officials and Corrective Actions: The Authority has recognized the deficiencies in the Housing Voucher Cluster Programs and will implement internal control procedures that will ensure compliance of federal regulations.
Finding 2022-002: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Number: 14.871, 14.879 & 14.EHV Noncompliance a?? N. Special Tests and Provisions a?? Reasonable Rent Non-Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions - Section 8 Housing Choice Vouchers Material Weakness in Internal Control over Compliance for Special Tests and Provisions - Mainstream Vouchers & Emergency Housing Vouchers must state the method used by the PHA to determine that the rent to owner is reasonable in comparison to rent for other comparable unassisted units. The PHA determination must consider unit attributes such as the location, quality, size, unit type, and age of the unit, and any amenities, housing services, maintenance, and utilities provided by the owner. The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition: Based upon inspection of the rent reasonableness documentation provided to us during the time of audit and discussions with management, it could not be determined with any certainty that rent to owner on newly leased units to the Section 8 Housing Choice Vouchers, Mainstream Vouchers, and Emergency Housing Vouchers is reasonable in accordance with the Authority?s policy at initial leasing and during the term of the contract. Context: Four (4) units were selected from the new move-in list and the rent to those units were to be determined reasonable in accordance with the Authority?s policy at time of leasing and during the term of the contract. It was determined that rent to four (4) out of four (4) units selected could not be determined reasonable in accordance with the Authority?s policy. Known Questioned Costs: $22,822 Cause: There is a significant deficiency in the Section 8 Housing Choice Vouchers Program and a material weakness in the Mainstream Vouchers and Emergency Housing Vouchers Programs in internal controls over the compliance for the special tests and provisions type of compliance related to reasonable rent. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance and the Mainstream Vouchers and Emergency Housing Vouchers Programs are in material non-compliance with the special tests and provisions type of compliance related to reasonable rent. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. View of Responsible Officials and Corrective Actions: The Authority has recognized the deficiencies in the Housing Voucher Cluster Programs and will implement internal control procedures that will ensure compliance of federal regulations.