FAC Explorer

Finding 20233 (2022-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-07-09
Audit: 18756
Organization: Longmont Housing Authority (CO)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The Authority failed to obtain reasonable rent forms on time, impacting compliance with housing regulations.
  • Impacted Requirements: The program mandates timely documentation of reasonable rent comparisons during initial move-ins and annual recertifications.
  • Recommended Follow-Up: Implement stronger controls and training to ensure timely maintenance of reasonable rent documentation.

Finding Text

U.S. Department of Housing and Urban Development ? CFDA #14.871 Section 8 Housing Choice Vouchers Applicable Federal Award Number and Year ? Housing Choice Vouchers ? 2022 Special Tests and Provisions ? Reasonable Rent Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: The Program requires the Authority to determine that rent to owners are reasonable in comparison to rent for other comparable unassisted units at the time of an initial move-in to a unit or during the annual recertification if the rent is increased. Condition: During our testing of compliance for reasonable rent, we identified instances in which the reasonable rent form was not obtained timely. Cause: The Authority?s internal controls related to the proper maintenance of reasonable rent forms were not operating as designed due to lack of education. Effect: Weaknesses in internal control over compliance could result in the Authority failing to comply with reasonable rent requirements. Questioned Costs: None reported. Context/Sampling: A non-statistical sample of 13 units that had rent changes were selected for testing. 12 out of the 13 units tested had the reasonable rent forms added at a later time. Repeat Finding from Prior Year: No. Recommendation: We recommend that the Authority establish controls to ensure the proper documentation of reasonable rent is maintained. View of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Significant Deficiency in Internal Control 2022-003 Special Tests and Provisions ? Reasonable Rent Repeat finding from prior year: No Finding Summary: ? The Program requires the Authority to determine that rent to owners are reasonable in comparison to rent for other comparable unassisted units at the time of an initial move-in to a unit or during the annual recertification if the rent is increased. During the testing of compliance for reasonable rent, auditors identified instances in which the reasonable rent form was not obtained timely. Responsible Individuals: Housing Compliance Manager Corrective Action Plan: Training was instituted for existing and new staff coming on board to know the correct rent reasonableness form to print and place in the file. Anticipated Completion Date: May 31, 2023

Categories

HUD Housing Programs Special Tests & Provisions Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 20229 2022-004
    -
  • 20230 2022-004
    Significant Deficiency
  • 20231 2022-001
    Significant Deficiency
  • 20232 2022-002
    Significant Deficiency
  • 596671 2022-004
    -
  • 596672 2022-004
    Significant Deficiency
  • 596673 2022-001
    Significant Deficiency
  • 596674 2022-002
    Significant Deficiency
  • 596675 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $5.72M
21.027 Coronavirus State and Local Fiscal Recovery Funds $875,000
14.218 Community Development Block Grants/entitlement Grants $402,916
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $50,055