Finding 585372 (2023-003)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-01-18

AI Summary

  • Core Issue: Catholic Charities failed to perform timely rent reasonableness tests for grant-funded rent payments.
  • Impacted Requirements: Compliance with HUD regulations on rent limits and documentation is not being met.
  • Recommended Follow-Up: Revise internal controls to ensure timely performance and review of rent reasonableness tests before payments are made.

Finding Text

Department of Housing and Urban Development Continuum of Care, Federal Financial Assistance Listing 14.267 Special Tests Material Weakness in Internal Control Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/CFDA 14.267 on the Schedule. Criteria: When grant funds are used by Catholic Charities to pay for rent, Catholic Charities must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified nine instances where the participant’s file did not have documentation that the rent reasonableness test was performed in a timely manner. Cause: Catholic Charities’ internal controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent was paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 60 were selected out of 510 rent payments that were paid. Repeat Finding from Prior Years: No Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management is in agreement with this finding.

Categories

HUD Housing Programs Material Weakness Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 8900 2023-001
    Material Weakness
  • 8901 2023-001
    Material Weakness
  • 8902 2023-001
    Material Weakness
  • 8903 2023-001
    Material Weakness
  • 8904 2023-001
    Material Weakness
  • 8905 2023-001
    Material Weakness
  • 8906 2023-001
    Material Weakness
  • 8907 2023-001
    Material Weakness
  • 8908 2023-001
    Material Weakness
  • 8909 2023-001
    Material Weakness
  • 8910 2023-001
    Material Weakness
  • 8911 2023-001
    Material Weakness
  • 8912 2023-001
    Material Weakness
  • 8913 2023-001
    Material Weakness Repeat
  • 8914 2023-001
    Material Weakness Repeat
  • 8915 2023-001
    Material Weakness Repeat
  • 8916 2023-001
    Material Weakness Repeat
  • 8917 2023-001
    Material Weakness Repeat
  • 8918 2023-001
    Material Weakness Repeat
  • 8919 2023-001
    Material Weakness Repeat
  • 8920 2023-003
    Material Weakness
  • 8921 2023-003
    Material Weakness
  • 8922 2023-003
    Material Weakness
  • 8923 2023-003
    Material Weakness
  • 8924 2023-003
    Material Weakness
  • 8925 2023-003
    Material Weakness
  • 8926 2023-003
    Material Weakness
  • 8927 2023-003
    Material Weakness
  • 8928 2023-003
    Material Weakness
  • 8929 2023-003
    Material Weakness
  • 8930 2023-003
    Material Weakness
  • 8931 2023-003
    Material Weakness
  • 8932 2023-003
    Material Weakness
  • 8933 2023-002
    Significant Deficiency Repeat
  • 8934 2023-002
    Significant Deficiency Repeat
  • 8935 2023-002
    Significant Deficiency Repeat
  • 8936 2023-002
    Significant Deficiency Repeat
  • 8937 2023-002
    Significant Deficiency Repeat
  • 8938 2023-002
    Significant Deficiency Repeat
  • 8939 2023-002
    Significant Deficiency Repeat
  • 585342 2023-001
    Material Weakness
  • 585343 2023-001
    Material Weakness
  • 585344 2023-001
    Material Weakness
  • 585345 2023-001
    Material Weakness
  • 585346 2023-001
    Material Weakness
  • 585347 2023-001
    Material Weakness
  • 585348 2023-001
    Material Weakness
  • 585349 2023-001
    Material Weakness
  • 585350 2023-001
    Material Weakness
  • 585351 2023-001
    Material Weakness
  • 585352 2023-001
    Material Weakness
  • 585353 2023-001
    Material Weakness
  • 585354 2023-001
    Material Weakness
  • 585355 2023-001
    Material Weakness Repeat
  • 585356 2023-001
    Material Weakness Repeat
  • 585357 2023-001
    Material Weakness Repeat
  • 585358 2023-001
    Material Weakness Repeat
  • 585359 2023-001
    Material Weakness Repeat
  • 585360 2023-001
    Material Weakness Repeat
  • 585361 2023-001
    Material Weakness Repeat
  • 585362 2023-003
    Material Weakness
  • 585363 2023-003
    Material Weakness
  • 585364 2023-003
    Material Weakness
  • 585365 2023-003
    Material Weakness
  • 585366 2023-003
    Material Weakness
  • 585367 2023-003
    Material Weakness
  • 585368 2023-003
    Material Weakness
  • 585369 2023-003
    Material Weakness
  • 585370 2023-003
    Material Weakness
  • 585371 2023-003
    Material Weakness
  • 585373 2023-003
    Material Weakness
  • 585374 2023-003
    Material Weakness
  • 585375 2023-002
    Significant Deficiency Repeat
  • 585376 2023-002
    Significant Deficiency Repeat
  • 585377 2023-002
    Significant Deficiency Repeat
  • 585378 2023-002
    Significant Deficiency Repeat
  • 585379 2023-002
    Significant Deficiency Repeat
  • 585380 2023-002
    Significant Deficiency Repeat
  • 585381 2023-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.50M
14.267 Continuum of Care Program $179,836
14.231 Emergency Solutions Grant Program $162,500
93.575 Child Care and Development Block Grant $88,433
64.024 Va Homeless Providers Grant and Per Diem Program $48,749
21.023 Emergency Rental Assistance Program $47,041
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $9,715
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1,576