Finding Text
S3800-010 Finding Reference Number: 2024-03
S3800-011 Title and CFDA Number of
Federal Program: Section 8 Housing Project-Based Cluster 14.182
S3800-015 Type of Finding: Federal Award Finding
S3800-016 Finding Resolution Status Resolved
S3800-017 Information on Universe Population Size: N/A
S3800-018 Sample Size Information: N/A
S3800-019 Identification of Repeat Finding and Finding Reference Number: N/A
S3800-020 Criteria: Per HUD guidance, management must implement approved rent changes on the effective date approved by HUD or the Contract Administrator. In some cases, this date may reflect a retroactive approval, and management must change the tenant certification and adjust the monthly subsidy voucher. Revised data must be transmitted to the Contract Administrator or to TRACS to reflect the retroactive changes.
S3800-030 Statement of Condition: The Project received an approved rent increase effective September 1, 2024. The Project failed to implement the HUD approved rate increase on the effective approval date.
S3800-032 Cause: Oversite was due to staff changes.
S3800-033 Effect or Potential Effect: The failure to implement rate increase may result in an understatement of revenues and delayed cash receipts. This non-compliance may result in administrative actions by HUD, including potential sanctions, future funding or renewal of contracts.
S3800-035 Auditor Non-Compliance Code: R – Section 8 program administrations
S3800-037 FHA/Contract Number: 085-11073
S3800-040 Questioned Costs: $--
S3800-045 Reporting Views of Responsible Officials: Management acknowledges the finding and is taking corrective actions to address the issue. The Project is seeking to hire additional staff and is committed to ensuring future rate changes are implemented timely in accordance with HUD requirements.
S3800-050 Context: For the year ended December 31, 2024, the Project did not implement approved rent
rate increase on the approved effective date.
S3800-080 Recommendation: We recommend that the Project implement enhanced internal controls and procedures including establishing timelines for financial reporting, emphasizing key dates and deadlines to prevent late filing is in the future.