CITY OF NEW ULM

2024-001 Rent Reasonableness U.S Department of Housing and Urban Development Section 8 Housing Choice Voucher Program 14.871 Condition: During our audit, we noted the EDA did not have rent reasonableness documentation for multiple tenants. Criteria: Code of Federal Regulations § 982.4 requires the PHA to determine and keep documentation that the rent to owner is reasonable. Cause: The EDA did not have all necessary forms for single audit compliance. Effect: The EDA is not in compliance with Federal Award Programs. Recommendation: We recommend that the EDA develop a checklist of all required forms to be kept in all tenant files to ensure compliance. Management Response: EDA will set up proper monitoring procedures to ensure the proper items are obtained.

Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Actions Planned in Response to Finding: The EDA will develop a set of procedures that will allow the EDA to be in compliance for all tenant files. Official Responsible for Ensuring CAP: Chris Dalton, Executive Director, is the official responsible for ensuring corrective action. Planned Completion Date for CAP: The planned completion date is June 30, 2025. Plan to Monitor Completion of CAP: The Board will be monitoring this corrective action plan and believes the Executive Director will remedy this finding. Chris Dalton Executive Director