FAC Explorer

Finding 499685 (2023-006)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-09-30
Audit: 322528
Organization: St. Vincent De Paul Village, Inc. (CA)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The Village failed to conduct proper rent reasonableness analyses for rental assistance, leading to potential overcharges.
  • Impacted Requirements: Non-compliance with 24 CFR §578.51(g) and 2 CFR §200.303 regarding documentation and timely assessments.
  • Recommended Follow-Up: Enhance policies to ensure timely rent reasonableness assessments and maintain necessary documentation; implement annual reviews for unchanged rents.

Finding Text

Federal Agencies: Department of Housing and Urban Development Federal Assistance Listing Numbers: 14.267 Program: Continuum of Care Program Award/Pass-Through Entity Identifying Numbers: CA0802L9D012113, CA0802L9D012214, CA1348L9D012107, CA1348L9D012208, CA1510L9D012106, CA1510LD012207, CA1883L9D012102, CA1883L9D012203, HHI-23-03, HHI-24-09, HHI-23-13, HHI-24-04 Criteria: The Uniform Guidance in 2 CFR §200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statues, regulations, and the terms and conditions of the Federal award. Per 24 CFR §578.51(g), “HUD will only provide rental assistance for a unit if the rent is reasonable. The recipient or subrecipient must determine whether the rent charged for the unit receiving rental assistance is reasonable in relation to rents being charged for comparable unassisted units, taking into account the location, size, type, quality, amenities, facilities, and management and maintenance of each unit. Reasonable rent must not exceed rents currently being charged by the same owner for comparable unassisted units.” Condition: In accordance with 24 CFR §578.51(g), we noted that: • 21 out of 60 rental payments tested did not have a comparable unit analysis conducted for move-in or increases in rent. • 17 out of 60 rental payments did not have a comparable unit analysis completed in a timely manner prior to the tenant’s move-in or prior to increases in rent. • 15 of the 43 rental payments that did have rent reasonableness performed did not have rent reasonableness analyzed in the past year. • 4 out of 60 rental payments tested did not have documentation for amounts charged (such as lease agreements, rent increase letters, or invoices). • 2 out of 60 rental payments tested had errors in the rent reasonableness forms. Cause: The Village did not appropriately retain or produce documentation verifying that rent reasonableness was assessed prior to move-in or during changes to lease terms, as required by its policies. Additionally, not all supporting documentation for changes to lease terms was obtained or retained. Effect or Potential Effect: The insufficient retention or creation of rent reasonableness forms and supporting documentation has led to ineffective operation of rent reasonableness controls, thereby not appropriately identifying rental amounts for the Village’s clients in need of rental assistance. Consequently, this deficiency could result in incorrect charges being applied to the Federal program. Questioned Costs: Known Questioned Costs: $33,686 Likely Questioned Costs: $910,698 Context: This is a condition identified per review of the Village’s compliance with specified requirements not using a statistically valid sample. Questioned costs were determined as the amounts paid without supporting rent reasonableness documentation. The total costs subject to rent reasonableness amounted to $2,719,260. Of the questioned costs identified above, $2,702 of known and $65,525 of likely questioned costs relate to a subrecipient’s tenants, which the Village is still responsible for ensuring rent reasonableness is properly completed. The subrecipient processed rental assistance documentation for $204,409 of tenant payments. Identification as a Repeat Finding: 2022-008 Recommendation: We recommend that the Village enhance existing policies to ensure rent reasonableness is performed on all rental assistance. In addition, we recommend management ensures determinations are performed prior to move-in or rent changes being charged, and documentation is maintained for both the rent amount and reasonableness of the rent. We further recommend a policy be enacted for reviewing rent reasonableness on a periodic basis (i.e. annually) for those tenants that have not had a change in rent during the period. Views of Responsible Officials: Management agrees with the finding. Management is in the process of enhancing and enforcing existing policies and procedures as well as performing a comprehensive tenant record review.

Categories

Questioned Costs Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties HUD Housing Programs

Other Findings in this Audit

  • 499644 2023-003
    Significant Deficiency Repeat
  • 499645 2023-003
    Significant Deficiency Repeat
  • 499646 2023-003
    Significant Deficiency Repeat
  • 499647 2023-003
    Significant Deficiency Repeat
  • 499648 2023-003
    Significant Deficiency Repeat
  • 499649 2023-003
    Significant Deficiency Repeat
  • 499650 2023-003
    Significant Deficiency Repeat
  • 499651 2023-003
    Significant Deficiency Repeat
  • 499652 2023-003
    Significant Deficiency Repeat
  • 499653 2023-003
    Significant Deficiency Repeat
  • 499654 2023-003
    Significant Deficiency Repeat
  • 499655 2023-003
    Significant Deficiency Repeat
  • 499656 2023-003
    Significant Deficiency Repeat
  • 499657 2023-003
    Significant Deficiency Repeat
  • 499658 2023-003
    Significant Deficiency Repeat
  • 499659 2023-004
    Significant Deficiency Repeat
  • 499660 2023-004
    Significant Deficiency Repeat
  • 499661 2023-004
    Significant Deficiency Repeat
  • 499662 2023-004
    Significant Deficiency Repeat
  • 499663 2023-004
    Significant Deficiency Repeat
  • 499664 2023-004
    Significant Deficiency Repeat
  • 499665 2023-004
    Significant Deficiency Repeat
  • 499666 2023-004
    Significant Deficiency Repeat
  • 499667 2023-005
    Material Weakness Repeat
  • 499668 2023-005
    Material Weakness Repeat
  • 499669 2023-005
    Material Weakness Repeat
  • 499670 2023-005
    Material Weakness Repeat
  • 499671 2023-005
    Material Weakness Repeat
  • 499672 2023-005
    Material Weakness Repeat
  • 499673 2023-005
    Material Weakness Repeat
  • 499674 2023-005
    Material Weakness Repeat
  • 499675 2023-005
    Material Weakness Repeat
  • 499676 2023-005
    Material Weakness Repeat
  • 499677 2023-005
    Material Weakness Repeat
  • 499678 2023-005
    Material Weakness Repeat
  • 499679 2023-005
    Material Weakness Repeat
  • 499680 2023-005
    Material Weakness Repeat
  • 499681 2023-005
    Material Weakness Repeat
  • 499682 2023-005
    Material Weakness Repeat
  • 499683 2023-005
    Material Weakness Repeat
  • 499684 2023-006
    Material Weakness Repeat
  • 499686 2023-006
    Material Weakness Repeat
  • 499687 2023-006
    Material Weakness Repeat
  • 499688 2023-006
    Material Weakness Repeat
  • 499689 2023-006
    Material Weakness Repeat
  • 499690 2023-006
    Material Weakness Repeat
  • 499691 2023-006
    Material Weakness Repeat
  • 499692 2023-006
    Material Weakness Repeat
  • 499693 2023-006
    Material Weakness Repeat
  • 499694 2023-006
    Material Weakness Repeat
  • 499695 2023-006
    Material Weakness Repeat
  • 499696 2023-007
    Material Weakness
  • 499697 2023-007
    Material Weakness
  • 499698 2023-007
    Material Weakness
  • 499699 2023-007
    Material Weakness
  • 499700 2023-007
    Material Weakness
  • 499701 2023-007
    Material Weakness
  • 499702 2023-007
    Material Weakness
  • 499703 2023-007
    Material Weakness
  • 499704 2023-007
    Material Weakness
  • 499705 2023-007
    Material Weakness
  • 499706 2023-007
    Material Weakness
  • 499707 2023-007
    Material Weakness
  • 499708 2023-008
    Significant Deficiency Repeat
  • 499709 2023-008
    Significant Deficiency Repeat
  • 499710 2023-008
    Significant Deficiency Repeat
  • 499711 2023-008
    Significant Deficiency Repeat
  • 499712 2023-008
    Significant Deficiency Repeat
  • 499713 2023-008
    Significant Deficiency Repeat
  • 499714 2023-008
    Significant Deficiency Repeat
  • 499715 2023-008
    Significant Deficiency Repeat
  • 499716 2023-008
    Significant Deficiency Repeat
  • 499717 2023-008
    Significant Deficiency Repeat
  • 499718 2023-008
    Significant Deficiency Repeat
  • 499719 2023-008
    Significant Deficiency Repeat
  • 499720 2023-009
    Significant Deficiency
  • 499721 2023-009
    Significant Deficiency
  • 499722 2023-009
    Significant Deficiency
  • 499723 2023-009
    Significant Deficiency
  • 499724 2023-009
    Significant Deficiency
  • 1076086 2023-003
    Significant Deficiency Repeat
  • 1076087 2023-003
    Significant Deficiency Repeat
  • 1076088 2023-003
    Significant Deficiency Repeat
  • 1076089 2023-003
    Significant Deficiency Repeat
  • 1076090 2023-003
    Significant Deficiency Repeat
  • 1076091 2023-003
    Significant Deficiency Repeat
  • 1076092 2023-003
    Significant Deficiency Repeat
  • 1076093 2023-003
    Significant Deficiency Repeat
  • 1076094 2023-003
    Significant Deficiency Repeat
  • 1076095 2023-003
    Significant Deficiency Repeat
  • 1076096 2023-003
    Significant Deficiency Repeat
  • 1076097 2023-003
    Significant Deficiency Repeat
  • 1076098 2023-003
    Significant Deficiency Repeat
  • 1076099 2023-003
    Significant Deficiency Repeat
  • 1076100 2023-003
    Significant Deficiency Repeat
  • 1076101 2023-004
    Significant Deficiency Repeat
  • 1076102 2023-004
    Significant Deficiency Repeat
  • 1076103 2023-004
    Significant Deficiency Repeat
  • 1076104 2023-004
    Significant Deficiency Repeat
  • 1076105 2023-004
    Significant Deficiency Repeat
  • 1076106 2023-004
    Significant Deficiency Repeat
  • 1076107 2023-004
    Significant Deficiency Repeat
  • 1076108 2023-004
    Significant Deficiency Repeat
  • 1076109 2023-005
    Material Weakness Repeat
  • 1076110 2023-005
    Material Weakness Repeat
  • 1076111 2023-005
    Material Weakness Repeat
  • 1076112 2023-005
    Material Weakness Repeat
  • 1076113 2023-005
    Material Weakness Repeat
  • 1076114 2023-005
    Material Weakness Repeat
  • 1076115 2023-005
    Material Weakness Repeat
  • 1076116 2023-005
    Material Weakness Repeat
  • 1076117 2023-005
    Material Weakness Repeat
  • 1076118 2023-005
    Material Weakness Repeat
  • 1076119 2023-005
    Material Weakness Repeat
  • 1076120 2023-005
    Material Weakness Repeat
  • 1076121 2023-005
    Material Weakness Repeat
  • 1076122 2023-005
    Material Weakness Repeat
  • 1076123 2023-005
    Material Weakness Repeat
  • 1076124 2023-005
    Material Weakness Repeat
  • 1076125 2023-005
    Material Weakness Repeat
  • 1076126 2023-006
    Material Weakness Repeat
  • 1076127 2023-006
    Material Weakness Repeat
  • 1076128 2023-006
    Material Weakness Repeat
  • 1076129 2023-006
    Material Weakness Repeat
  • 1076130 2023-006
    Material Weakness Repeat
  • 1076131 2023-006
    Material Weakness Repeat
  • 1076132 2023-006
    Material Weakness Repeat
  • 1076133 2023-006
    Material Weakness Repeat
  • 1076134 2023-006
    Material Weakness Repeat
  • 1076135 2023-006
    Material Weakness Repeat
  • 1076136 2023-006
    Material Weakness Repeat
  • 1076137 2023-006
    Material Weakness Repeat
  • 1076138 2023-007
    Material Weakness
  • 1076139 2023-007
    Material Weakness
  • 1076140 2023-007
    Material Weakness
  • 1076141 2023-007
    Material Weakness
  • 1076142 2023-007
    Material Weakness
  • 1076143 2023-007
    Material Weakness
  • 1076144 2023-007
    Material Weakness
  • 1076145 2023-007
    Material Weakness
  • 1076146 2023-007
    Material Weakness
  • 1076147 2023-007
    Material Weakness
  • 1076148 2023-007
    Material Weakness
  • 1076149 2023-007
    Material Weakness
  • 1076150 2023-008
    Significant Deficiency Repeat
  • 1076151 2023-008
    Significant Deficiency Repeat
  • 1076152 2023-008
    Significant Deficiency Repeat
  • 1076153 2023-008
    Significant Deficiency Repeat
  • 1076154 2023-008
    Significant Deficiency Repeat
  • 1076155 2023-008
    Significant Deficiency Repeat
  • 1076156 2023-008
    Significant Deficiency Repeat
  • 1076157 2023-008
    Significant Deficiency Repeat
  • 1076158 2023-008
    Significant Deficiency Repeat
  • 1076159 2023-008
    Significant Deficiency Repeat
  • 1076160 2023-008
    Significant Deficiency Repeat
  • 1076161 2023-008
    Significant Deficiency Repeat
  • 1076162 2023-009
    Significant Deficiency
  • 1076163 2023-009
    Significant Deficiency
  • 1076164 2023-009
    Significant Deficiency
  • 1076165 2023-009
    Significant Deficiency
  • 1076166 2023-009
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.527 Grants for New and Expanded Services Under the Health Center Program $623,390
93.526 Fip Verification $442,558
14.218 Community Development Block Grants/entitlement Grants $406,289
14.241 Housing Opportunities for Persons with Aids $373,213
93.224 Health Center Program (community Health Centers, Migrant Health Centers, Health Centers for the Homeless, and Public Housing Primary Care) $275,129
14.231 Emergency Solutions Grant Program $225,758
97.008 Non-Profit Security Program $187,256
97.024 Emergency Food and Shelter National Board Program $171,396
14.267 Continuum of Care Program $169,813
10.558 Child and Adult Care Food Program $94,259
64.033 Va Supportive Services for Veteran Families Program $63,259
32.006 Covid-19 Telehealth Program $15,312
45.129 Promotion of the Humanities_federal/state Partnership $12,500