Finding 598869 (2022-004)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-09-27

AI Summary

  • Core Issue: The Authority lacks adequate documentation to support the determination of reasonable rent, violating federal regulations.
  • Impacted Requirements: Non-compliance with 24 CFR 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507.
  • Recommended Follow-Up: Review and update procedures and the administrative plan to ensure proper documentation of reasonable rent.

Finding Text

Criteria: 24 CFR 982.4, 982.54(d)(15), 982.158(f)(7) and 982.507 requires the Authority to document the basis for the determination that the rent to owner is a reasonable rent as outlined in their administrative plan Condition: The control deficiency exists due to documentation of reasonable rent that is inadequate to determine the used to determine reasonable rent and did not contain sufficient information to support the calculation. Cause: The cause of the deficiency was related to turnover of employees. Effect: The Authority is not in compliance with 24 CFR 982.4, 982.54(d)(15), 982.158(f)(7) and 982.507 Recommendation: We recommend that the Authority review their procedures to ensure reasonable rent is properly documented and update their administrative plan to reflect any changes.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 22426 2022-003
    Material Weakness
  • 22427 2022-004
    Material Weakness
  • 22428 2022-005
    Material Weakness
  • 22429 2022-001
    Material Weakness
  • 22430 2022-002
    Material Weakness
  • 598868 2022-003
    Material Weakness
  • 598870 2022-005
    Material Weakness
  • 598871 2022-001
    Material Weakness
  • 598872 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $727,318
10.415 Rural Rental Housing Loans $116,988
10.427 Rural Rental Assistance Payments $82,118