FAC Explorer

Finding 45771 (2022-005)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-09-29
Audit: 40655
Organization: Fargo Housing and Redevelopment Authority (ND)
Auditor: Brady Martz & Associates PC

AI Summary

  • Core Issue: Two tenant files lacked required rent reasonableness forms for rent increases, risking improper HAP payments.
  • Impacted Requirements: Compliance with HUD regulations on maintaining documentation for reasonable rent determinations.
  • Recommended Follow-Up: Implement a second-party review process and use a checklist for annual certifications to ensure all necessary documents are included.

Finding Text

Federal Program U.S. Department of Housing and Urban Development AL #14.871 & 14.879 ? Significant Deficiency Grant Award No. ND014-Housing Choice Voucher & ND014 Mainstream Voucher Federal Award Year 2022 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 53 tenant files and found that two tenants did not have a rent reasonableness form for an increase in rent. The rent was deemed reasonable by the Authority once noted by the auditors. Questioned Costs None Context We reviewed a sample of 53 of the Authority?s 1,713 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 during the term of the HAP contracts, the tenant files did not contain forms comparing the rent of like-kind units. Repeat Finding See 2021-005. 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.

Corrective Action Plan

Contact Person Tom Keller, Executive Director, Jill Liebelt, CFO, & Chris Brungardt, CEO Corrective Action Plan The Authority will have a checklist on annual certifications to ensure all appropriate documents are included in the file. Planned Completion Date for CAP December 31, 2023

Categories

HUD Housing Programs Significant Deficiency

Other Findings in this Audit

  • 45770 2022-004
    Significant Deficiency
  • 45772 2022-004
    Significant Deficiency
  • 45773 2022-005
    Significant Deficiency Repeat
  • 45774 2022-004
    Significant Deficiency
  • 45775 2022-005
    Significant Deficiency Repeat
  • 622212 2022-004
    Significant Deficiency
  • 622213 2022-005
    Significant Deficiency Repeat
  • 622214 2022-004
    Significant Deficiency
  • 622215 2022-005
    Significant Deficiency Repeat
  • 622216 2022-004
    Significant Deficiency
  • 622217 2022-005
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $9.51M
14.879 Mainstream Vouchers $1.30M
14.850 Public and Indian Housing $1.29M
14.872 Public Housing Capital Fund $634,391
14.267 Continuum of Care Program $247,268
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $195,141
14.896 Family Self-Sufficiency Program $94,331
14.195 Section 8 Housing Assistance Payments Program $84,429
14.870 Resident Opportunity and Supportive Services - Service Coordinators $73,302