Finding Text
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority must determine reasonable rent during the term of the contract before any increase in the rent to owner. The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (24 CFR sections 982.158(f)(7) and 982.507). Condition: The Authority did not perform rent reasonableness procedures in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: A sample of 40 contract rent changes found that rent reasonableness was not performed prior to the rent increase in 2 instances. The sample was statistically valid. Cause: Rent reasonableness was not determined prior to the effective date of the rent change. Effect: The Authority is not in compliance with rent reasonableness requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that rent reasonableness is determined prior to the effective date of the change in rent. Views of responsible officials: There is no disagreement with the audit finding.