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 quality control over
reasonableness testing on both new leased units, selection from the waiting list, and quality control reinspections.
Condition: Management does not have a system in place to track changes in rent charged by
landlords from the current year to the prior year to verify the change is reasonable. There is no system
in place to track historical admissions of tenants from the waiting list. There is no system in place to
identify re-inspections separate from initial inspections. Therefore, a complete population was unable to
be obtained in order to perform required testing of special provisions.
Questioned Costs: None
Context: Management does not maintain listing of contract rent changes, admissions of tenants from
the waiting list, or re-inspections performed.
Cause: Management did not have a tenant management computer program in place during 2023.
Effect: Noncompliance with HUD requirement
Repeat Finding: No
Recommendation: We recommend that management implements a tenant management software
system which will track the contract rents annually, admissions from the waiting list, and re-inspections
performed.
Views of responsible officials and planned corrective actions: Management is in agreement with
the finding.