Finding 572496 (2024-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-08-04

AI Summary

  • Core Issue: Lack of documentation for rent reasonableness reviews by the Chief of Housing Operations.
  • Impacted Requirements: Internal controls over major federal program compliance are not being met, risking undetected errors.
  • Recommended Follow-up: Implement a policy for documented approval of rent reasonableness reviews by the Chief of Housing Operations.

Finding Text

Review of Rent Reasonableness Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Continuum of Care Program Assistance Listing Number: 14.267 Award Period: July 1, 2023 – June 30, 2024 Type of Finding: Significant Deficiency of Internal Control over Major Federal Program Condition and Criteria: Rent reasonableness is completed by a member of the leasing and housing team. The Chief of Housing Operations performs a review of the rent reasonableness documentation. However, there is no documentation of the review and approval. Cause: Supportive Housing Communities, Inc. requires a review of the rent reasonableness by the Chief of Housing Operations, but there is no policy requiring documentation of the review and approval. Effect: It is possible review is not completed and errors are not caught and corrected timely. Recommendation: We recommend that management implement a policy that the Chief of HousingOperations documents their approval to ensure the review and approval have occurred. View of Responsible Officials and Planned Corrective Actions: The Organization agrees with thefinding. Supportive Housing Communities, Inc. has updated their process for preparing and inspectionof rent costs to ensure that the Chief of Housing Operations reviews all rent reasonablenessdocumentation by signing each form and noting the date of review. Name of the Contact Person Responsible for the Corrective Action: Laura Caldwell, President andChief Executive Officer Planned Completion Date for the Corrective Action Plan: July 15, 2025

Categories

Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 572494 2024-001
    Significant Deficiency
  • 572495 2024-001
    Significant Deficiency
  • 572497 2024-002
    Significant Deficiency
  • 572498 2024-002
    Significant Deficiency
  • 572499 2024-002
    Significant Deficiency
  • 1148936 2024-001
    Significant Deficiency
  • 1148937 2024-001
    Significant Deficiency
  • 1148938 2024-001
    Significant Deficiency
  • 1148939 2024-002
    Significant Deficiency
  • 1148940 2024-002
    Significant Deficiency
  • 1148941 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.267 Continuum of Care Program $293,112
14.252 Section 4 Capacity Building for Community Development and Affordable Housing $24,308
14.239 Home Investment Partnerships Program $18,835
14.231 Emergency Solutions Grant Program $16,818