Finding 610694 (2022-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-07-24
Audit: 32684
Organization: Barron County Housing Authority (WI)

AI Summary

  • Core Issue: The entity lacks internal controls to ensure rent reasonableness calculations are properly completed and documented for new tenants and those with rent increases.
  • Impacted Requirements: Compliance with HUD's Housing Choice Voucher Cluster regulations regarding rent reasonableness.
  • Recommended Follow-Up: Establish a process to verify and maintain rent reasonableness calculations in tenant files.

Finding Text

2022 ? 002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Award Identification Number and Year: W1245VO0164 - 2022 Award Period: January 1, 2022 ? December 31, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Housing Choice Voucher Cluster requires the entity to determine reasonable rent for new tenants and tenants whose rent increased. Condition: During our testing, we noted that the entity did not have internal controls over rent reasonableness calculations to verify they were completed and maintained in the files for new tenants and tenants whose rent increased from the prior year. Questioned costs: None Context: During our testing we noted that the entity did not have rent reasonableness calculations available for two of seven tenants selected for new tenants and one of eight tenants for current tenants whose rent increased from the prior year. Cause: New inspector was not aware of requirements and due to staffing issues management was not able to make sure these were completed as required. Effect: Noncompliance with HUD requirements. Repeat Finding: No Recommendation: We recommend, the entity develop a process to verify that rent reasonableness calculations are completed and maintained in the files. Views of responsible officials: There is no disagreement with the audit finding.

Categories

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 34251 2022-001
    Significant Deficiency
  • 34252 2022-002
    Significant Deficiency
  • 610693 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $717,840
14.182 Section 8 New Construction and Substantial Rehabilitation $208,328