Finding 395074 (2021-008)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2021
Accepted
2024-04-30

AI Summary

  • Core Issue: Three tenant files lacked necessary rent reasonableness forms, which are required to confirm that rent is reasonable.
  • Impacted Requirements: Compliance with HUD regulations (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507) regarding documentation for rent determinations.
  • Recommended Follow-Up: Implement a second-party review process and use a checklist for annual certifications to ensure all required documents are included.

Finding Text

Federal Program U.S. Department of Housing and Urban Development AL #14.871 – Significant Deficiency Criteria The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition We tested compliance with the Authority’s rent reasonableness forms in 40 tenant files and found that three tenants did not have a rent reasonableness form for the current cost of rent. The rent was deemed reasonable by the Authority once noted by the auditors. Questioned Costs None Context We reviewed a sample of 40 of the Authority’s 436 tenant files for rent reasonableness requirements. Effect HAP payments could have been paid to a tenant where rent was not considered reasonable. Cause Upon change in rent or move-in to a new property during the term of the HAP contracts, the tenant files did not contain forms comparing the rent of like-kind units. Repeat Finding Not a repeat finding. Recommendation We recommend there be a second party review of the file to ensure all appropriate documents are included. Views of Responsible Officials The Authority will have a checklist on annual certifications to ensure all appropriate documents are included in the file.

Categories

Significant Deficiency

Other Findings in this Audit

  • 395061 2021-005
    Material Weakness
  • 395062 2021-006
    Significant Deficiency
  • 395063 2021-007
    Significant Deficiency
  • 395064 2021-008
    Significant Deficiency
  • 395065 2021-009
    Significant Deficiency
  • 395066 2021-005
    Material Weakness
  • 395067 2021-006
    Significant Deficiency
  • 395068 2021-007
    Significant Deficiency
  • 395069 2021-008
    Significant Deficiency
  • 395070 2021-009
    Significant Deficiency
  • 395071 2021-005
    Material Weakness
  • 395072 2021-006
    Significant Deficiency
  • 395073 2021-007
    Significant Deficiency
  • 395075 2021-009
    Significant Deficiency
  • 971503 2021-005
    Material Weakness
  • 971504 2021-006
    Significant Deficiency
  • 971505 2021-007
    Significant Deficiency
  • 971506 2021-008
    Significant Deficiency
  • 971507 2021-009
    Significant Deficiency
  • 971508 2021-005
    Material Weakness
  • 971509 2021-006
    Significant Deficiency
  • 971510 2021-007
    Significant Deficiency
  • 971511 2021-008
    Significant Deficiency
  • 971512 2021-009
    Significant Deficiency
  • 971513 2021-005
    Material Weakness
  • 971514 2021-006
    Significant Deficiency
  • 971515 2021-007
    Significant Deficiency
  • 971516 2021-008
    Significant Deficiency
  • 971517 2021-009
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $230,447
14.879 Mainstream Vouchers $152,297
14.871 Section 8 Housing Choice Vouchers $64,219
14.850 Public and Indian Housing $62,632