Finding 51890 (2022-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-09-27
Audit: 49732
Organization: Oklahoma City Housing Authority (OK)

AI Summary

  • Core Issue: The Housing Authority lacks adequate internal controls to ensure compliance with rent reasonableness requirements for the Housing Choice Voucher Program.
  • Impacted Requirements: The Authority failed to determine reasonable rent before tenant move-in, violating HUD regulations regarding rent assessments.
  • Recommended Follow-Up: Assign a dedicated individual to oversee the lease-up process and ensure rent reasonableness checks are completed prior to tenant move-ins.

Finding Text

2022 - 003 ? HCVP Rent Reasonableness Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 / 14.879 Federal Award Identification Number and Year: OK002 (various funding increments active during period 1/1/22-12/31/22) Award Period: January 1, 2022 through December 31, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance. ? Other Matters. Criteria: The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract: (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a five percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that rent reasonableness requirements were being met. Questioned costs: None Context: During the testing of the Housing Choice Voucher Program new tenant files, one instance was noted where the Housing Authority failed to perform a determination of reasonable rent prior to move in. Cause: The Authority does not have controls in place to ensure it is meeting inspection requirements set by HUD. Effect: The Authority is not in compliance with program requirements over eligibility. Repeat Finding: The finding is a not repeat of a finding in the immediate prior year. Recommendation: We recommend management to designate one person to oversee the lease up process to ensure determination of reasonable rent is performed prior to processing of the move in. View of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

Recommendation: We recommend management to designate one person to oversee the lease up process to ensure determination of reasonable rent is performed prior to processing of the move in. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: HCV has one person overseeing the rent reasonableness prior to move ins. The finding is based on one file not having the rent reasonableness documentation for a special program, Single Room Occupancy, which is being corrected by signing a new MOU containing the rent reasonableness. Name(s) of the contact person(s) responsible for corrective action: Richard Marshall Planned completion date for corrective action plan: 12/31/2023

Categories

HUD Housing Programs Eligibility Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 51888 2022-001
    Significant Deficiency Repeat
  • 51889 2022-002
    Significant Deficiency
  • 51891 2022-001
    Significant Deficiency Repeat
  • 51892 2022-002
    Significant Deficiency
  • 51893 2022-003
    Significant Deficiency
  • 51894 2022-001
    Significant Deficiency Repeat
  • 51895 2022-002
    Significant Deficiency
  • 51896 2022-003
    Significant Deficiency
  • 628330 2022-001
    Significant Deficiency Repeat
  • 628331 2022-002
    Significant Deficiency
  • 628332 2022-003
    Significant Deficiency
  • 628333 2022-001
    Significant Deficiency Repeat
  • 628334 2022-002
    Significant Deficiency
  • 628335 2022-003
    Significant Deficiency
  • 628336 2022-001
    Significant Deficiency Repeat
  • 628337 2022-002
    Significant Deficiency
  • 628338 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $29.08M
14.850 Public and Indian Housing $14.09M
14.872 Public Housing Capital Fund $4.50M
14.879 Mainstream Vouchers $1.41M
14.195 Section 8 Housing Assistance Payments Program $398,850
14.871 Emergency Housing Vouchers $194,202
14.218 Community Development Block Grants/entitlement Grants $158,945
93.959 Block Grants for Prevention and Treatment of Substance Abuse $89,131
14.870 Resident Opportunity and Supportive Services - Service Coordinators $80,584
14.235 Supportive Housing Program $75,000
14.896 Family Self-Sufficiency Program $52,223
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $30,664