Finding 47004 (2022-002)

FINDING No. 2022-002: Section 8 Housing Assistance Payments Program, CFDA 14.195 Finding Resolution Status: Resolved. Information on Universe Population Size: Rent schedules. Sample Size Information: Rent schedules. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD approved OCAF rent increases should be recognized in the period of approval with timely adjustments applied to the monthly housing assistance payments requests on form HUD-52670. Statement of Condition: The Project incorrectly recognized a prior year approved gross rent change in the current year, which resulted in material federal awards not being captured and reported on the SEFA in the correct period as well as a qualified opinion due to the identified material weakness over major program compliance. Cause: The Project materially understated reported housing assistance payments on the prior year SEFA. Effect or Potential Effect: The Project was not able to utilize the additional funds awarded through the approved rent increase in the intended period and reported federal awards were materially misstated. Auditor Non-Compliance Code: R ? Section 8 Program Administration Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations have been adopted. Recommendation: The Project should implement procedures to ensure that rent increases are submitted for approval in a timely manner and that all approved gross rent changes are applied and captured in the period of approval. Response Indicator: Agree. Completion Date: 4/22/2022 Response: In 2023, Compliance will be beginning to monitor rent increases to ensure they are submitted timely. Compliance will also be monitoring approved gross rent changes to ensure that new rents are applied timely.