Finding Text
Rent Reasonableness Repeat of Finding 2023-007 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Special Tests – Rent Reasonableness Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Mater Criteria or specific requirement: Per 24 CFR 982.507, no HAP contract can be approved until the Organization has determined that the rent for the unit is reasonable. Condition: During our testing, we noted one file where the rent reasonableness form was not retained in the participant’s file. Questioned costs: None Context: From a sample of 60 program participant files selected for testing, one tenant file did not have the rent reasonableness form included in the participant’s file. Cause: The Housing Specialist did not obtain/retain proper documentation of the rent reasonableness form. Effect: File did not contain required information per 24 CFR 982.507. The program participant could have been receiving the incorrect amount of HAP. Repeat finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.