Finding 1190777 (2025-004)

Department of Housing and Urban Development CFDA #14.181 Supportive Housing for Persons with Disabilities Special Provisions and Testing – Contract Rent Adjustment Significant Deficiency in Internal Control over Compliance Criteria – A good system of internal control over compliance related to the program’s contract rent adjustments should ensure a separate review is performed on the budget worksheet HUD- 92457-A prior to submission. Condition – The Corporation did not have a separate review performed on the budget worksheet HUD-92457-A prior to submission. Cause – The Corporation did not have controls in place to ensure a separate review is performed on the budget worksheet HUD-92457-A after it is prepared. Effect – Without proper implementation of internal controls over the review of the budget worksheet HUD-92457-A, errors could occur and result in the Corporation’s failure to meet the specific program contract rent adjustment requirements. Questioned Costs – None reported Context/Sampling – The required annual budget worksheet HUD-92457-A was tested. Report Finding from Prior Year – No Recommendation – We recommend management implement controls to ensure a separate review over the budget worksheet HUD-92457-A is completed by someone other than the preparer before it is submitted to HUD. Views of Responsible Officials – Management agrees with the finding.