Finding 1075022 (2023-001)

U.S. Department of Housing and Urban Development Housing Voucher Cluster Section 8 Housing Choice Vouchers – AL # 14.871 Finding Type- Immaterial Noncompliance; Material weakness in internal control over compliance Criteria – The Authority is required to determine the rent to the owner is reasonable when the tenants initially enter into the program (lease-up). An application with a monthly rent in excess of the range of area averages should be rejected with a rent not exceeding this range proposed as an reasonable rent. The Authority is required to maintain records which support that this was performed on all new leases. Condition – The Authority did not determine rents were reasonable in five of the 25 tenants that were selected for testing prior to approving the rent amount noted in the application. Cause – Internal controls in place did not ensure compliance with the Reasonable Rent compliance requirement was maintained during the year. Effect or Potential Effect – The Authority was not in compliance with the Reasonable Rent compliance requirement. Recommendations - We recommend the Authority enhance internal controls to ensure internal controls over the Reasonable Rent and other grant compliance requirements are established to ensure compliance is maintained. Views of Responsible Officials and Planned Corrective Actions - Management agrees with this finding. Management will review and update internal controls to ensure the Authority maintains compliance.