Finding Text
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: OR005 – 2025 Award Period: January 1, 2025 – December 31, 2025 Compliance Requirement: Special Tests and Provisions – Reasonable Rent Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: According to the OMB Compliance Supplement for HCVP program. "The PHA’s administrative plan must state the method used by the PHA to determine that the rent to owner is reasonable in comparison to rent for other comparable unassisted units. The PHA determination must consider unit attributes such as the location, quality, size, unit type, and age of the unit, and any amenities, housing services, maintenance, and utilities provided by the owner." Condition: The Authority did not have adequate internal controls designed to ensure that the rent determination date was before the effective date. Context: During our testing over rent reasonableness, auditor noted 1 of the 40 selections tested had rent determinations completed after the effective date. Questioned costs: None Cause: The Authority did not have adequate internal controls designed to ensure that rent determinations were completed prior to the effective date. Effect: The Authority is not in compliance with program requirements over reasonable rent. Repeat Finding: Yes. 2024-001 Recommendation: We recommend that the Authority implement internal controls to ensure that tenant reasonable rent are completed timely. View of Responsible Officials: There is no disagreement with the audit finding that Authority has implemented additional training to the Housing Program Administrators as well as increased auditing of tenant files for FY 2026.