FAC Explorer

Finding 1227446 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-08-20
Audit: 409486
Organization: Housing and Redevelopment Authority of the City of Worthington (MN)
Auditor: ABDO LLP

AI Summary

  • Core Issue: The HRA lacks necessary rent reasonableness documentation for several tenants.
  • Impacted Requirements: Compliance with Code of Federal Regulations § 982.4, which mandates proper documentation for rent reasonableness.
  • Recommended Follow-Up: Create a checklist of required forms for tenant files to ensure future compliance.

Finding Text

Rent Reasonableness U.S Department of Housing and Urban Development Section 8 Housing Choice Voucher Program 14.871 Condition: During our audit, we noted the HRA did not have rent reasonableness documentation for multiple tenants. Criteria: Code of Federal Regulations § 982.4 requires the PHA to determine and keep documentation that the rent to owner is reasonable. Cause: The HRA did not have all necessary forms for single audit compliance. Effect: The HRA is not in compliance with Federal Award Programs. Recommendation: We recommend that the HRA develop a checklist of all required forms to be kept in all tenant files to ensure compliance. Management Response: The HRA’s management has taken steps to correct this finding and ensure that proper documentation is maintained in the future.

Corrective Action Plan

Rent Reasonableness CORRECTIVE ACTION PLAN (CAP): Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Actions Planned in Response to Finding: The HRA will include rent reasonableness documentation in all required tenant files. Official Responsible for Ensuring CAP: Tanner Rogers, Executive Director, is the official responsible for ensuring corrective action. Planned Completion Date for CAP: The planned completion date is December 31, 2026. Plan to Monitor Completion of CAP: The Board will be monitoring this corrective action plan and believes the Executive Director will remedy this finding.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1227442 2025-001
    Material Weakness Repeat
  • 1227443 2025-002
    Material Weakness Repeat
  • 1227444 2025-003
    Material Weakness Repeat
  • 1227445 2025-004
    Material Weakness Repeat
  • 1227447 2025-002
    Material Weakness Repeat
  • 1227448 2025-003
    Material Weakness Repeat
  • 1227449 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.872 PUBLIC HOUSING CAPITAL FUND $372,634
14.850 PUBLIC HOUSING OPERATING FUND $200,222
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $57,825