Finding 496378 (2023-002)

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Award Identification Number and Year: W1245VO0164 - 2023 Award Period: January 1, 2023 – December 31, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The Housing Choice Voucher Cluster requires the entity to determine reasonable rent for new tenants and tenants whose rent increased. Condition: During our testing, we noted that the entity did not have internal controls over rent reasonableness calculations to verify they were completed and maintained in the files for new tenants and tenants whose rent increased from the prior year. Questioned costs: None Context: During our testing we noted that the entity did not have documentation for rent reasonableness calculations for five current tenants and completed and maintained in the file. In addition another four tenants had calculations completed but did not have documentation of approval by Housing Authority personnel. Cause: Due to staffing issues management was not able to make sure these were completed as required. Effect: Noncompliance with HUD requirements. Repeat Finding: Yes – 2022-002 Recommendation: We recommend, the entity develop a process to verify that rent reasonableness calculations are completed and maintained in the files. Views of responsible officials: There is no disagreement with the audit finding.