Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program: Choice Voucher Program
Federal Assistance Listing Number: 14.871
Pass-Through Agencies: Faribault and Le Sueur County Housing and Redevelopment Authorities
Pass-Through Number(s): MN200VO/MN171VO
Award Period: 3/1/21-3/31/23
Type of Finding: Material Weakness in Internal Control over Compliance, Other Matters
Criteria or Specific Requirement: Housing Choice Voucher program requires rent reasonableness
calculations to be performed for each new contract.
Condition: Management does not perform rent reasonableness calculations on new tenants.
Questioned Costs: None
Context: During testing, zero of five tenants selected had documentation of rent reasonableness
calculations performed.
Cause: Management does not have a process in place to calculate reasonable rent upon admission of
new tenants to the program.
Effect: Rent to owner could be unreasonable and noncompliant with the Organization’s Administrative
Plan and HUD requirements.
Repeat Finding: No
Recommendation: We recommend that management implements a process to perform rent
reasonableness calculation and retain documentation.
Views of responsible officials and planned corrective actions: Management is in agreement with
the finding.