FAC Explorer

Finding 628385 (2022-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-09-04
Audit: 45321
Organization: Dupage Housing Authority (IL)
Auditor: Rubino & Company Chartered

AI Summary

  • Core Issue: The Authority lacks proper documentation to prove that rent amounts are reasonable, violating federal requirements.
  • Impacted Requirements: Compliance with 24 CFR Section 982, which mandates documentation for rent reasonableness during leasing and contract terms.
  • Recommended Follow-Up: The Authority should strengthen internal controls to ensure all rent reasonableness documentation is complete and maintained.

Finding Text

Finding 2022-03: Missing Rent Reasonableness Documentation (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Federal Assistance Listing Number: 14.871/14.879 Compliance Requirement: Special Tests and Provisions Criteria: Per 24 CFR Section 982, PHAs must determine that rent paid to an owner is reasonable at the time of initial leasing and during the term of the contract. Condition: The Authority did not maintain adequate documentation supporting its determination that rent amounts were reasonable. Context: Of the 40 rent amounts reviewed, 19 of them did not have adequate documentation to support the reasonableness of the rent amount. Effect: The Authority does not maintain adequate documentation for rent reasonableness. Cause: The Authority did not maintain adequate documentation for rent reasonableness. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its internal controls to ensure that rent reasonableness is adequately documented. Views of Responsible Officials: The Authority agrees with the finding.

Categories

Special Tests & Provisions HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 51942 2022-002
    Significant Deficiency
  • 51943 2022-003
    Significant Deficiency
  • 51944 2022-002
    Significant Deficiency
  • 51945 2022-003
    Significant Deficiency
  • 51946 2022-002
    Significant Deficiency
  • 51947 2022-003
    Significant Deficiency
  • 51948 2022-002
    Significant Deficiency
  • 51949 2022-003
    Significant Deficiency
  • 628384 2022-002
    Significant Deficiency
  • 628386 2022-002
    Significant Deficiency
  • 628387 2022-003
    Significant Deficiency
  • 628388 2022-002
    Significant Deficiency
  • 628389 2022-003
    Significant Deficiency
  • 628390 2022-002
    Significant Deficiency
  • 628391 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.879 Mainstream Vouchers $819,506
14.871 Section 8 Housing Choice Vouchers $462,691
14.896 Family Self-Sufficiency Program $69,547