Finding Text
2022 ? 004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Reasonable Rent Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract before any increase in the rent to owner. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition: The Authority did not perform rent reasonableness procedures in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 2 out of 80 files tested for reasonable rent requirements: ? Documentation for the determination of rent was not maintained for 1 sample. ? The contract rent did not agree to the rent determined reasonable for 1 sample. The sample was statistically valid. Cause: The Authority did not maintain documentation utilized to determine rent reasonableness. Effect: The Authority is not in compliance with rent reasonableness requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure that documentation is maintained in in accordance with rent reasonableness requirements. Views of responsible officials: There is no disagreement with the audit finding.