Audit 308850

Finding: 2023-002 Lack of Proper Review – Allowable Activities/Costs, Eligibility, Reporting, and Special Provisions Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Choice Voucher Program Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: N/A Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: December 31, 2023 Type of Finding: Material Weakness in Internal Control Over Compliance Condition: There is minimal oversight of the housing manager duties which include determining eligibility, reporting requirements, selection from the waiting list, reasonable rent calculations, inspections, and housing authority payment. Criteria or Specific Requirement: The HRA is required to have controls in place to ensure eligible persons are receiving benefits and that the program is meeting all of the federal requirements. Context: During testing, it was noted that there is minimal oversight of the housing manager duties which include determining eligibility, reporting requirements, selection from the waiting list, reasonable rent calculations, inspections, and housing authority payment. Effect: There is potential for error in reports, selections or ineligible individuals receiving benefits. Cause: Lack of personnel. Repeat Finding: No. Recommendation: We recommend the HRA implement controls over all areas of the federal program so that segregation of duties are in place and working. Views of Responsible Officials: There is no disagreement with the audit finding.

Finding: 2023-003 Lack of Depository Agreement –Special Provisions Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Choice Voucher Program Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: N/A Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: December 31, 2023 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matters Condition: The HRA was not aware of the federal requirements to have a depository agreement in place. Criteria or Specific Requirement: The HRA is required to enter into depository agreements with their financial institutions in the form required by HUD. The agreements serve as safeguards for federal funds and provide third party rights to HUD. Context: During testing of the program, it was noted that the HRA did not have a depository agreement in place. Effect: There is potential for the HRA to not be in compliance with federal statutes. Cause: Management was unaware of the requirement. Repeat Finding: No. Recommendation: We recommend the HRA enter into this agreement into place as soon as possible. Views of Responsible Officials: There is no disagreement with the audit finding.

Finding: 2023-002 Lack of Proper Review – Allowable Activities/Costs, Eligibility, Reporting, and Special Provisions Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Choice Voucher Program Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: N/A Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: December 31, 2023 Type of Finding: Material Weakness in Internal Control Over Compliance Condition: There is minimal oversight of the housing manager duties which include determining eligibility, reporting requirements, selection from the waiting list, reasonable rent calculations, inspections, and housing authority payment. Criteria or Specific Requirement: The HRA is required to have controls in place to ensure eligible persons are receiving benefits and that the program is meeting all of the federal requirements. Context: During testing, it was noted that there is minimal oversight of the housing manager duties which include determining eligibility, reporting requirements, selection from the waiting list, reasonable rent calculations, inspections, and housing authority payment. Effect: There is potential for error in reports, selections or ineligible individuals receiving benefits. Cause: Lack of personnel. Repeat Finding: No. Recommendation: We recommend the HRA implement controls over all areas of the federal program so that segregation of duties are in place and working. Views of Responsible Officials: There is no disagreement with the audit finding.

Finding: 2023-003 Lack of Depository Agreement –Special Provisions Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Choice Voucher Program Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: N/A Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: December 31, 2023 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matters Condition: The HRA was not aware of the federal requirements to have a depository agreement in place. Criteria or Specific Requirement: The HRA is required to enter into depository agreements with their financial institutions in the form required by HUD. The agreements serve as safeguards for federal funds and provide third party rights to HUD. Context: During testing of the program, it was noted that the HRA did not have a depository agreement in place. Effect: There is potential for the HRA to not be in compliance with federal statutes. Cause: Management was unaware of the requirement. Repeat Finding: No. Recommendation: We recommend the HRA enter into this agreement into place as soon as possible. Views of Responsible Officials: There is no disagreement with the audit finding.