FAC Explorer

Finding 972967 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2024-05-13
Audit: 306118
Organization: Mental Health Association in Orange County, Inc. (NY)
Auditor: Nugent and Haeussler PC

AI Summary

  • Core Issue: The Organization used outdated 2021 rent rates for 2022, leading to non-compliance with HUD's fair market rent requirements.
  • Impacted Requirements: Compliance with 24 CFR Section 578.51(g) regarding reasonable rent and adherence to current HUD fair market rents.
  • Recommended Follow-up: Implement written procedures for tracking program requirement changes and regularly update calculation worksheets to ensure ongoing compliance.

Finding Text

Compliance and Significant Deficiency in Internal Control over compliance with Special Tests and Provisions U.S. Department of Housing and Urban Development Direct Program Program Name: Continuum of Care AL#: 14.267 Condition: For 2022, the Organization performed rent comparisons to the HUD fair market rent rates using the rates in place for 2021 when determining if the 2022 rent was in excess of the allowable rent. Criteria: Per 24 CFR Section 578.51(g), where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents charged for comparable units taking into consideration relevant features. In add the portion of rents paid with the grant funds may not exceed HUD-determined fair market rents for the current year. Context: Of the 10 cases selected for testing using leasing funds, 4 tenant’s rents paid exceeded the published fair market rent allowed for 2022. Of the 10 cases selected for testing using rental assistance funds, 2 tenant’s rents paid exceeded the published fair market rates. Cause: The Organization did not update their records and calculation worksheets for the change in the FMV from 2021 to 2022. There was a decrease in the published rates for 2022 which affected the calculation of the allowable rents. Effect: The Organization is not in compliance with the requirements of the Continuum of Care program with respect to Special Test Requirements for Reasonable Rental Rates. Recommendation: We recommend that written procedures addressing internal controls with respect to tracking changes in program requirements be implemented and that procedures to update any worksheets for the effect of those requirements be performed and verified to ensure that the Organization is in compliance at all times. View of Responsible Officials: Mental Health Association in Orange County Inc.’s (MHA) management concurs with this finding. The Organization is in the process of implementing procedures to ensure that compliance is maintained in the future. Please refer to the corrective action plan on pages 13 - 14.

Categories

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

Other Findings in this Audit

  • 396507 2022-001
    Significant Deficiency
  • 396508 2022-002
    Significant Deficiency
  • 396509 2022-003
    Significant Deficiency
  • 396510 2022-001
    Significant Deficiency
  • 396511 2022-002
    Significant Deficiency
  • 396512 2022-003
    Significant Deficiency
  • 396513 2022-001
    Significant Deficiency
  • 396514 2022-002
    Significant Deficiency
  • 396515 2022-003
    Significant Deficiency
  • 396516 2022-001
    Significant Deficiency
  • 396517 2022-002
    Significant Deficiency
  • 396518 2022-003
    Significant Deficiency
  • 396519 2022-001
    Significant Deficiency
  • 396520 2022-002
    Significant Deficiency
  • 396521 2022-003
    Significant Deficiency
  • 396522 2022-001
    Significant Deficiency
  • 396523 2022-002
    Significant Deficiency
  • 396524 2022-003
    Significant Deficiency
  • 396525 2022-001
    Significant Deficiency
  • 396526 2022-002
    Significant Deficiency
  • 396527 2022-003
    Significant Deficiency
  • 396528 2022-001
    Significant Deficiency
  • 396529 2022-002
    Significant Deficiency
  • 396530 2022-003
    Significant Deficiency
  • 396531 2022-001
    Significant Deficiency
  • 396532 2022-002
    Significant Deficiency
  • 396533 2022-003
    Significant Deficiency
  • 396534 2022-001
    Significant Deficiency
  • 396535 2022-002
    Significant Deficiency
  • 396536 2022-003
    Significant Deficiency
  • 396537 2022-001
    Significant Deficiency
  • 396538 2022-002
    Significant Deficiency
  • 396539 2022-003
    Significant Deficiency
  • 972949 2022-001
    Significant Deficiency
  • 972950 2022-002
    Significant Deficiency
  • 972951 2022-003
    Significant Deficiency
  • 972952 2022-001
    Significant Deficiency
  • 972953 2022-002
    Significant Deficiency
  • 972954 2022-003
    Significant Deficiency
  • 972955 2022-001
    Significant Deficiency
  • 972956 2022-002
    Significant Deficiency
  • 972957 2022-003
    Significant Deficiency
  • 972958 2022-001
    Significant Deficiency
  • 972959 2022-002
    Significant Deficiency
  • 972960 2022-003
    Significant Deficiency
  • 972961 2022-001
    Significant Deficiency
  • 972962 2022-002
    Significant Deficiency
  • 972963 2022-003
    Significant Deficiency
  • 972964 2022-001
    Significant Deficiency
  • 972965 2022-002
    Significant Deficiency
  • 972966 2022-003
    Significant Deficiency
  • 972968 2022-002
    Significant Deficiency
  • 972969 2022-003
    Significant Deficiency
  • 972970 2022-001
    Significant Deficiency
  • 972971 2022-002
    Significant Deficiency
  • 972972 2022-003
    Significant Deficiency
  • 972973 2022-001
    Significant Deficiency
  • 972974 2022-002
    Significant Deficiency
  • 972975 2022-003
    Significant Deficiency
  • 972976 2022-001
    Significant Deficiency
  • 972977 2022-002
    Significant Deficiency
  • 972978 2022-003
    Significant Deficiency
  • 972979 2022-001
    Significant Deficiency
  • 972980 2022-002
    Significant Deficiency
  • 972981 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.982 Mental Health Disaster Assistance and Emergency Mental Health $139,460
93.958 Block Grants for Community Mental Health Services $55,734
16.575 Crime Victim Assistance $38,534
21.023 Emergency Rental Assistance Program $32,422
93.136 Injury Prevention and Control Research and State and Community Based Programs $27,898
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $18,710
14.267 Continuum of Care Program $15,944
21.027 Coronavirus State and Local Fiscal Recovery Funds $9,584
16.017 Sexual Assault Services Formula Program $9,327
10.558 Child and Adult Care Food Program $297
93.665 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $151