Finding 634919 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-09-28

AI Summary

  • Core Issue: The Housing Authority's rent reasonableness calculations lack comparability, affecting compliance with federal guidelines.
  • Impacted Requirements: This finding relates to 2 CFR 200.514(c) and 2 CFR 200.305(b)(3), which require proper internal controls for establishing reasonable rent.
  • Recommended Follow-Up: Implement internal control processes to ensure rent comparability is accurately established in line with local market conditions.

Finding Text

2022-001 ? Rent Reasonableness Federal Program Information: Department of Housing and Urban Development ? Housing Voucher Cluster: ALN ? 14.871 Housing Choice Voucher Criteria: The following CFR(s) apply to this finding: 2 CFR 200.514(c), 2 CFR section 200.305(b)(3). Condition: During audit procedures, it was identified that the Housing Authorities rent reasonableness calculation does not establish comparability. Cause: The Housing Authority does not have the necessary internal controls over compliance. Effect: The Housing Authority does not have the correct system in place to establish comparability correct based on reasonable rent in the area. Identification of Questioned Costs: None identified. Context: The entire population of the tenants that were sampled during field work. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the Unit implement internal control processes and procedures to ensure that reasonable rent can be established with comparability in the area. Views of Responsible Officials and Corrective Action Plan: Client agrees with finding and the unabridged version of their response can be found in the Corrective Action Plan. Please see the Corrective Action Plan issued by the Melody Ackerman.

Categories

HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 58477 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $981,028