Finding 1153478 (2024-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-09-19

AI Summary

  • Core Issue: The Housing Authority failed to perform required rent reasonableness studies for 9 out of 40 files.
  • Impacted Requirements: Compliance with HUD regulations for Housing Choice Vouchers, specifically regarding rent reasonableness studies.
  • Recommended Follow-Up: Strengthen internal controls to ensure all rent reasonableness calculations are completed as required.

Finding Text

Compliance Requirement: Condition and Criteria: Special Tests and provisions. Condition and Criteria: Housing 'Authorities are required to perfo1m a rent reasonableness study upon entrance to the program and whenever the rent changes on the unit. Assistance Listing Number: 14.871,Housing Choice Vouchers. Cause: The internal control structure was not adequate to prevent these deficiencies. Effect: It was noted that 9 of the 40 files did not contain the required rent reasonableness calculations. Questioned Costs: None known. Auditors' Recommendation: We recommend that the Housing Authority strengthen its internal controls to ensure they are in compliance with HUD requirements.

Corrective Action Plan

Corrective Action Plan: Upon assuming the role of Executive Director in July 2024, it became clear that rent reasonableness studies were not being conducted under the previous administration, as required. Recognizing the importance of compliance with HUD regulations, I initiated the implementation of a rent reasonableness policy and process. To support this effort, we entered into a contract with MRI to provide us with the rent reasonableness software. Last year we supplied MRI with the necessary property addresses and zip codes to begin the analysis. Due to the complexity of the implementation and the volume of data required, the setup process took time. We are now actively incorporating rent reasonableness determinations into all tenant files during annual recertifications and interims. With nearly 700 families in our program, this is an ongoing process, but significant progress has been made. Our team is fully committed to ensuring full compliance with HUD regulations, and we continue to work diligently toward that goal. In addition, to ensure continued compliance and to maintain the integrity of our files, the HCV Supervisor will be conducting weekly audits. This internal quality control measure helps us identify and address any inconsistencies or issues in a timely manner.

Categories

HUD Housing Programs Special Tests & Provisions Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $5.02M