Audit 24959

U.S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Finding 2022-002: Segregation of Duties Allowable Activities / Allowable Costs Housing Voucher Cluster #14.871 Significant Deficiency Financial Statement Finding 2022-001 applies to this federal program. Statement of Condition The Executive Director was responsible for most of the accounting functions including the procurement and authorization of expenditures. Criteria There should be proper segregation of duties so that no single individual has access to authorization, recording, custody, or reconciling of assets. This is to ensure that unintentional or intentional errors are detected in a timely fashion. Cause The Authority relied on the former Executive Director until departure without adequate oversight and review. Effect or Potential Effect Executive Director had access to expend resources for unallowable expenses. Recommendation We recommend the Authority adhere to policies involving the segregation of duties to allow for effective authorization and monitoring procedures. Management?s Response Management agrees with finding, see Corrective Action Plan for plan of action.

U.S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Finding 2022-003: HCV Program Management - HUD Monitoring Review Special Tests and Provisions Housing Voucher Cluster ? CFDA #14.871 Material Weakness Statement of Condition HUD conducted a Monitoring Review in September 2022 resulting in 23 findings pertaining to the Housing Voucher Cluster primarily pertaining to the lack of sufficient policies and procedures to administer the Housing Choice Voucher program. In addition, the audit noted that the Authority was unable to provide documentation for HQS inspections conducted or enforcement actions taken. Criteria The Authority is to ensure that leased units meet Housing Quality Standards prior and during the term of occupancy in accordance with HUD rules and regulations. Cause The Authority relied on the former Executive Director to conduct HQS inspections and such prior inspections were not tracked and/or documented in participant files. Effect or Potential Effect Staff was unable to effectively monitor, or track inspection deadlines and units were assisted without conducting HQS inspections within the required timeframes. Context A sample of 15 files were selected to audit HQS inspections from a population of 110. The test found five files lacked a current year inspection including three of which that indicated prior failed HQS items without evident of enforcement or passed inspection from the prior year. Recommendation The Authority must conduct, track, and enforce HQS inspection in accordance with its HCV Administrative Plan, as currently revised. In addition, the Authority should implement a process for supervisory quality control HQS inspection to ensure adherence to its policies and comply with HUD Requirements. Management?s Response Management agrees with finding, see Corrective Action Plan for plan of action.

U.S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Finding 2022-002: Segregation of Duties Allowable Activities / Allowable Costs Housing Voucher Cluster #14.871 Significant Deficiency Financial Statement Finding 2022-001 applies to this federal program. Statement of Condition The Executive Director was responsible for most of the accounting functions including the procurement and authorization of expenditures. Criteria There should be proper segregation of duties so that no single individual has access to authorization, recording, custody, or reconciling of assets. This is to ensure that unintentional or intentional errors are detected in a timely fashion. Cause The Authority relied on the former Executive Director until departure without adequate oversight and review. Effect or Potential Effect Executive Director had access to expend resources for unallowable expenses. Recommendation We recommend the Authority adhere to policies involving the segregation of duties to allow for effective authorization and monitoring procedures. Management?s Response Management agrees with finding, see Corrective Action Plan for plan of action.

U.S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Finding 2022-003: HCV Program Management - HUD Monitoring Review Special Tests and Provisions Housing Voucher Cluster ? CFDA #14.871 Material Weakness Statement of Condition HUD conducted a Monitoring Review in September 2022 resulting in 23 findings pertaining to the Housing Voucher Cluster primarily pertaining to the lack of sufficient policies and procedures to administer the Housing Choice Voucher program. In addition, the audit noted that the Authority was unable to provide documentation for HQS inspections conducted or enforcement actions taken. Criteria The Authority is to ensure that leased units meet Housing Quality Standards prior and during the term of occupancy in accordance with HUD rules and regulations. Cause The Authority relied on the former Executive Director to conduct HQS inspections and such prior inspections were not tracked and/or documented in participant files. Effect or Potential Effect Staff was unable to effectively monitor, or track inspection deadlines and units were assisted without conducting HQS inspections within the required timeframes. Context A sample of 15 files were selected to audit HQS inspections from a population of 110. The test found five files lacked a current year inspection including three of which that indicated prior failed HQS items without evident of enforcement or passed inspection from the prior year. Recommendation The Authority must conduct, track, and enforce HQS inspection in accordance with its HCV Administrative Plan, as currently revised. In addition, the Authority should implement a process for supervisory quality control HQS inspection to ensure adherence to its policies and comply with HUD Requirements. Management?s Response Management agrees with finding, see Corrective Action Plan for plan of action.