Finding Text
Federal agency: Department of Housing and Urban Development Federal program title: Continuum of Care Program FALN Number: 14.267 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: September 1, 2023 – August 31, 2024; September 1, 2024- August 31, 2025. Type of Finding: Significant Deficiency in Internal Control over Compliance and Immaterial Noncompliance Criteria or specific requirement: 2 CFR § 200.303 requires recipients and subrecipients to establish, document, and maintain effective internal controls over Federal awards, aligned with the COSO Internal Control–Integrated Framework. Condition: The Organization could not provide documentation that certain rent reasonableness checks were done for selected clients. Questioned costs: None Context: This condition impacted three (3) of nine (9) checklists selected for testing. Cause: Oversight. Effect: The Organization could pay rent on behalf of a client that is 1) unreasonable in relation to rents being charged in the area of comparable unassisted units or 2) in excess of the HUD-determined fair market rate. Repeat Finding: No Recommendation: We recommend program managers verify that rent reasonableness checklists and certifications are fully completed by HUD staff. Views of responsible officials: There is no disagreement with the audit finding.