Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Voucher Cluster
Assistance Listing Number: 14.871/14.879
Federal Award Identification Number and Year: MO002VO - 2023
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Special Tests and Provisions – Reasonable Rent
Type of Finding: Significant Deficiency in Internal Control over Compliance
Type of Finding:Other Matters Criteria or specific requirement: The Authority 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 before any increase in the rent to owner. 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 Housing Assistance Payment (HAP) contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507).
Condition: The Authority did not perform rent reasonableness procedures in accordance with program compliance requirements.
Questioned costs: Unable to determine.
Context: Exceptions noted in 1 out of 40 files tested for reasonable rent requirements. Documentation for the determination of rent was not maintained for the 1 sample. Cause: The Authority did not maintain documentation utilized to determine rent reasonableness.
Effect: The Authority is not in compliance with rent reasonableness requirements.
Repeat Finding: Yes, finding 2022-004.
Recommendation: We recommend that the Authority implements controls to ensure that documentation is maintained in accordance with rent reasonableness requirements.
Views of responsible officials: There is no disagreement with the audit finding.