Finding 51943 (2022-003)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2023-09-04

Audit: 45321

Organization: Dupage Housing Authority (IL)

Auditor: Rubino & Company Chartered

AI Summary

Core Issue: The Authority lacks proper documentation to prove that rent amounts are reasonable, violating federal requirements.
Impacted Requirements: Compliance with 24 CFR Section 982, which mandates documentation for rent reasonableness during leasing and contract terms.
Recommended Follow-Up: The Authority should strengthen internal controls to ensure all rent reasonableness documentation is complete and maintained.

Finding Text

Finding 2022-03: Missing Rent Reasonableness Documentation (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Federal Assistance Listing Number: 14.871/14.879 Compliance Requirement: Special Tests and Provisions Criteria: Per 24 CFR Section 982, PHAs must determine that rent paid to an owner is reasonable at the time of initial leasing and during the term of the contract. Condition: The Authority did not maintain adequate documentation supporting its determination that rent amounts were reasonable. Context: Of the 40 rent amounts reviewed, 19 of them did not have adequate documentation to support the reasonableness of the rent amount. Effect: The Authority does not maintain adequate documentation for rent reasonableness. Cause: The Authority did not maintain adequate documentation for rent reasonableness. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its internal controls to ensure that rent reasonableness is adequately documented. Views of Responsible Officials: The Authority agrees with the finding.

Corrective Action Plan

Finding 2022-03: Missing Rent Reasonableness (Significant Deficiency) Corrective Action Plan: In April 2023, management retained Nan McKay and Associates (NMA) to review the current roles and responsibilities of its HCV support positions. DHA has completed the restructuring of its Program Specialist staff and will continue to restructure additional roles and responsibilities to drive better organizational effectiveness, while addressing missing rent reasonableness deficiencies with the following changes: ? Implement Rent Reasonableness software integration with Yardi to eliminate the timeconsuming data entry). ? Separate duties and Inspectors from creating RFTAs and creating new vendors. ? Move creating units in Yardi to the Occupancy (new Program Office) department. Furthermore, DuPage Housing Authority has created a Procurement Department to retain an electronic filing system vendor. DHA currently utilizes physical file storage space within its DHA and KHA offices and an offsite storage unit. Employees have historically destroyed critical documents without authorized legal signoff. Name of Responsible Person: Cheron Corbett, Executive Director Projected Completion Date: December 31, 2023

Other Findings in this Audit

51942 2022-002

Significant Deficiency
51944 2022-002

Significant Deficiency
51945 2022-003

Significant Deficiency
51946 2022-002

Significant Deficiency
51947 2022-003

Significant Deficiency
51948 2022-002

Significant Deficiency
51949 2022-003

Significant Deficiency
628384 2022-002

Significant Deficiency
628385 2022-003

Significant Deficiency
628386 2022-002

Significant Deficiency
628387 2022-003

Significant Deficiency
628388 2022-002

Significant Deficiency
628389 2022-003

Significant Deficiency
628390 2022-002

Significant Deficiency
628391 2022-003

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
14.879	Mainstream Vouchers	$819,506
14.871	Section 8 Housing Choice Vouchers	$462,691
14.896	Family Self-Sufficiency Program	$69,547