Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Supportive Housing for Persons With Disabilities
Assistance Listing Number: 14.181
Federal Award Identification Number and Year: 121-HD002-NP-CMI - 2024
Pass-Through Agency: N/A
Award Period: July 1, 2023, to June 30, 2024
Type of Finding:
Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: According to §200.303 Internal Controls of 2 CFR Part 200, the
non-Federal entity must establish and maintain effective internal control over the Federal award that
provides reasonable assurance that the non-Federal entity is managing the Federal award in
compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.
Condition: Tenant rent computation was not calculated correctly.
Questioned costs: None
Context: As part of our testing, we noted an issue with a tenant's rent computation, which resulted in
undercharged rent. The rent computation requires that all of the tenant's income and assets be
included in the calculation of the tenant's rent. The error occurred due to excluding a tenant's asset and
rental income. These exclusions collectively understated the rent that should have been charged to the
tenant.
Cause: Management oversight to address all of the tenant's assets and income on the rent
computation form.
Effect: Noncompliance results in possible over charges to the grant.
Repeat Finding: N/A