Finding Text
2023 – 001 Rent Reasonableness Calculations
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: W193 - 2023
Award Period: January 1, 2023 – December 31, 2023
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or specific requirement: The Housing Choice Voucher Cluster requires the entity to determine reasonable rent for new tenants and tenants whose rent increased.
Condition: During our testing, we noted that the Authority did not have internal controls over rent reasonableness calculations to verify they were completed and maintained in the files for new tenants and tenants whose rent increased from the prior year.
Questioned costs: None
Context: During our testing we noted that the Authority did not have documentation for rent reasonableness calculations for one new and one current tenant completed and maintained in the file.
Cause: Management was not able to make sure these were completed as required.
Effect: Noncompliance with HUD requirements.
Repeat Finding: No
Recommendation: We recommend, the entity develop a process to ensure that rent reasonableness calculations are completed and maintained in the files.
Views of responsible officials: There is no disagreement with the audit finding.