Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Voucher Cluster – Program Documentation (Significant Deficiency) Assistance Listing Number: 14.871
Federal Award Identification Number and Year: OR005 – 2024
Award Period: January 1, 2024 – December 31, 2024
Compliance Requirement: Special Tests and Provisions – Reasonable Rent
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or Specific Requirement: According to the OMB Compliance Supplement for HCVP program. "The PHA’s administrative plan 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."
Condition: HALC was unable to provide the necessary documentation to support the following Housing Voucher Cluster compliance requirements:
Special Tests:
-Reasonable rent
Context: During our testing over reasonable rent, auditor noted 1 of the 40 selections tested had no documentation that their determination of rent to owners is reasonable in accordance with their administrative plan at initial leasing and during the term of the contract as required.
Questioned costs: None
Cause: The Authority did not have adequate internal controls designed to ensure that reasonable rent files are processed accordingly.
Effect: The Authority is not in compliance with program requirements over reasonable rent.
Recommendation: We recommend that the Authority implement internal controls to ensure tenant reasonable rent files are maintained with adequate documentation.
Views of responsible officials: There is no disagreement with the audit finding.