Finding 36371 (2022-002)

S3800-010: Finding Reference Number 2022-002 Program Information S3800-011: Federal Program Supportive Housing for the Elderly - Section 202 Federal Agency: U.S. Department of Housing and Urban Development Federal Award Identification Number and Year: COVID-19 Identification: Pass-through Entity: None CFDA #: 14.157 Type of Compliance Finding: N ? Special Tests and Provisions S3800-015: Type of Finding Federal Award Finding S3800-016: Finding Resolution Status In-progress S3800-017: Information on Universe Population Size NA S3800-018: Sample Size Information NA S3800-019: Repeat Finding Number NA S3800-020: Criteria The Project Rental Assistance Contract (PRAC) with the U.S. Department of Housing and Urban Development (HUD) approved a rent increase effective April 1, 2021. S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended March 31, 2022 we noted the approved rent increase was not implemented and rents were charged at the prior year?s rates. S3800-032: Cause The Organization does not have adequate internal controls to ensure rents charged are in accordance with most recent PRAC contract. S3800-033: Effect or Potential Effect The Organization was not in compliance with the requirements of HUD related to rental assistance contract. S3800-035: Auditor Non-Compliance Code: Z ? Other S3800-040: Questioned Costs $31,871 S3800-045: Reporting Views of Responsible Officials Management agreed with auditor?s finding S3800-050: Context The Organization did not charge rent in accordance with most recent HUD approved rates. S3800-080: Recommendation The Organization should implement a process to ensure that rent is charged in accordance with the most recent PRAC authorized by HUD. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date August 31, 2022 S3800-150: Response See Corrective Action Plan