Finding Text
Federal Agency: US Department of Housing and Urban Development Federal Program Title: Housing Choice Voucher Program Assistance Listing Number: 14.871 Award Period: January 1, 2024, through December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: According to the HUD Compliance Supplement, "The PHA must determine that the rent to the owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 10 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary." Condition: The Authority did not have adequate internal controls designed to ensure that the rent reasonableness was completed/approved prior to the rent effective date. Questioned costs: None Context: During our testing, 2 of 29 sampled tenant files did not have their rent reasonableness determination completed/approved prior to the rent effective date. Cause: The Authority did not have proper internal controls to ensure that rent reasonableness determinations were completed in a timely manner. Effect: The Authority is not in compliance with the program’s requirements of reasonable rent. Repeat Finding: No Recommendation: We recommend that the Authority implement processes to ensure that rent reasonableness determinations are completed on time. Views of responsible officials: There is no disagreement with the audit finding.