Finding 1153547 (2024-001)

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

AI Summary

  • Core Issue: The Authority failed to complete timely rent reasonableness calculations for new tenants, leading to noncompliance with HUD requirements.
  • Impacted Requirements: The Housing Choice Voucher Cluster mandates timely rent reasonableness assessments for new tenants and those experiencing rent increases.
  • Recommended Follow-Up: The Authority should establish a process to ensure timely completion of rent reasonableness calculations.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Federal Award Identification Number and Year: W193 - 2024 Award Period: January 1, 2024 – December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The Housing Choice Voucher Cluster requires the Authority to determine reasonable rent for new tenants and tenants whose rent increased. Condition: During our testing, we noted that the Authority’s internal controls were not properly designed to ensure rent reasonableness calculations were completed timely. Questioned Costs: None Context: During our testing we noted that the Authority had documentation for rent reasonableness calculations for one new tenant completed but it was completed after the rate change was effective. Cause: The Authority was not able to make sure these were completed as required. Effect: Noncompliance with HUD requirements. Repeat Finding: No Recommendation: We recommend, the Authority develop a process to ensure that rent reasonableness calculations are completed timely. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

Timely Rent Reasonableness Calculations Corrective Action Plan (CAP): Recommendation: We recommend, the Authority develop a process to ensure that rent reasonableness calculations are completed prior to becoming effective Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Authority will train individuals doing the calculations to ensure calculations are completed timely and enforce processes to verify rent reasonableness calculations are done. Name of the contact person responsible for corrective action: Nicole Benson Planned completion date for corrective action plan: December 31, 2025

Categories

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1153546 2024-001
    Material Weakness Repeat
  • 1153548 2024-002
    Material Weakness Repeat
  • 1153549 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.84M
14.879 Mainstream Vouchers $457,802
14.872 Public Housing Capital Fund $72,019
14.850 Public Housing Operating Fund $44,216
14.896 Family Self-Sufficiency Program $34,769