Finding 1150614 (2024-001)

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Award Identification Number and Year: W1245VO0164 - 2024 Award Period: January 1, 2024 – December 31, 2024 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 entity 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 entity did not have documentation for rent reasonableness calculations completed prior to the effective date and maintained in the file. Cause: Due to staffing issues management was not able to make sure these were completed as required. Effect: Noncompliance with HUD requirements. Repeat Finding: Yes – 2023-002 Recommendation: We recommend, the entity develop a process to verify that rent reasonableness calculations are completed and maintained in the files. Views of responsible officials: There is no disagreement with the audit finding.