Finding 509665 (2024-003)

Significant Deficiency

Requirement

Questioned Costs

Year

2024

Accepted

2024-11-21

Audit: 329305

Organization: Community Link, Programs of Travelers Aid Society of Central Carolinas (NC)

Auditor: Cliftonlarsonallen LLP

AI Summary

Core Issue: Community Link is not complying with the requirement to assess rent reasonableness annually.
Impacted Requirements: This affects the Continuum of Care Program's compliance with federal guidelines on rent assessments.
Recommended Follow-Up: Implement a policy for annual rent assessments and review when rental rates increase, with a completion target of March 2025.

Finding Text

Finding 2024-003: Noncompliance with Period of Performance Requirement Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Continuum of Care Program (PRC RR, Northern PSH Combo, and Piedmont) Assistance Listing Number: 14.267 Award Period: Northern PSH Combo (Grant no. NC 0045) April 1, 2023 to March 31, 2024 Piedmont (Grant no. NC 0221) June 1, 2023 to May 31, 2024 PRC RR (Grant no. NC 0125) June 1, 2023 to May 31, 2024 Type of Finding: Significant Deficiency and Noncompliance Condition and Criteria: Rent reasonableness should be assessed on an annual basis. Cause: Community Link has a policy to perform a rent reasonableness assessment when the client enters the program, but there is no policy to update that assessment on an annual basis. Effect: Community Link is not comparing the current rent to the market rent rates. Recommendation: We recommend that management implements a policy to review rent reasonableness on an annual basis at a minimum. We also recommend performing a rent reasonableness assessment if rental rates charged for the same unit are increased. View of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding. Community Link will update the policy and procedure manual to add that rent reasonable will be completed annually for customers in CoC programs and when rental increases are assessed by the Property provider. Currently, staff are in communication with property providers when an increase is assessed, so the increased rents stay within the FMR for the area. Name of the Contact Person Responsible for the Corrective Action: Tameka Gunn, President and Chief Executive Officer Planned Completion Date for the Corrective Action Plan: March 2025

Corrective Action Plan

Continuum of Care – Assistance Listing No. 14.267 Recommendation: In testing of rent reasonableness, we noted that rent reasonableness is performed when a client enters the program, but is not updated annually. We recommend that management implements a policy to review rent reasonableness on an annual basis at a minimum. We also recommend performing a rent reasonableness assessment if rental rates charged for the same unit are increased. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Community Link will update the policy and procedure manual to add that rent reasonable will be completed annually for customers in CoC programs and when rental increases are assessed by the Property provider. Currently, staff are in communication with property providers when an increase is assessed, so the increased rents stay within the FMR for the area. Name(s) of the contact person(s) responsible for corrective action: Tameka Gunn, President and Chief Executive Officer Planned completion date for corrective action plan: March 2025

Other Findings in this Audit

509666 2024-001

- Repeat
509667 2024-002

Significant Deficiency
509668 2024-003

Significant Deficiency
509669 2024-001

- Repeat
509670 2024-003

Significant Deficiency
1086107 2024-003

Significant Deficiency
1086108 2024-001

- Repeat
1086109 2024-002

Significant Deficiency
1086110 2024-003

Significant Deficiency
1086111 2024-001

- Repeat
1086112 2024-003

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
14.267	Continuum of Care Program	$1.20M
14.239	Home Investment Partnerships Program	$104,295
14.169	Housing Counseling Assistance Program	$55,000
14.231	Emergency Solutions Grant Program	$32,045
21.009	Volunteer Income Tax Assistance (vita) Matching Grant Program	$25,000
21.027	Coronavirus State and Local Fiscal Recovery Funds	$25,000
16.736	Transitional Housing Assistance for Victims of Domestic Violence, Dating Violence, Stalking, Or Sexual Assault	$22,062
20.509	Formula Grants for Rural Areas and Tribal Transit Program	$19,350