2023-004 Asset Supporting Documentation for Family Income Examinations
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA)
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR 985.516, the tenant file and application must obtain 3rd party verification of assets.
Condition: During our testing, we noted two tenant files out of 60 files tested were missing the required supporting asset documentation.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, two tenants were missing asset documentation.
Cause: The Housing Specialist did not obtain (or retain) the documentation to support the assets listed on Form 50058.
Effect: File did not contain required information per 24 CFR 985.516. A program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: No
Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-004 Asset Supporting Documentation for Family Income Examinations
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA)
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR 985.516, the tenant file and application must obtain 3rd party verification of assets.
Condition: During our testing, we noted two tenant files out of 60 files tested were missing the required supporting asset documentation.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, two tenants were missing asset documentation.
Cause: The Housing Specialist did not obtain (or retain) the documentation to support the assets listed on Form 50058.
Effect: File did not contain required information per 24 CFR 985.516. A program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: No
Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-004 Asset Supporting Documentation for Family Income Examinations
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA)
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR 985.516, the tenant file and application must obtain 3rd party verification of assets.
Condition: During our testing, we noted two tenant files out of 60 files tested were missing the required supporting asset documentation.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, two tenants were missing asset documentation.
Cause: The Housing Specialist did not obtain (or retain) the documentation to support the assets listed on Form 50058.
Effect: File did not contain required information per 24 CFR 985.516. A program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: No
Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-004 Asset Supporting Documentation for Family Income Examinations
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA)
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR 985.516, the tenant file and application must obtain 3rd party verification of assets.
Condition: During our testing, we noted two tenant files out of 60 files tested were missing the required supporting asset documentation.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, two tenants were missing asset documentation.
Cause: The Housing Specialist did not obtain (or retain) the documentation to support the assets listed on Form 50058.
Effect: File did not contain required information per 24 CFR 985.516. A program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: No
Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-004 Asset Supporting Documentation for Family Income Examinations
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA)
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR 985.516, the tenant file and application must obtain 3rd party verification of assets.
Condition: During our testing, we noted two tenant files out of 60 files tested were missing the required supporting asset documentation.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, two tenants were missing asset documentation.
Cause: The Housing Specialist did not obtain (or retain) the documentation to support the assets listed on Form 50058.
Effect: File did not contain required information per 24 CFR 985.516. A program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: No
Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-005 Supporting Documentation in Tenant Files - Authorization for Release of Information
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR 5.212 and 5.230, the Organization is required to retain a signed privacy notice from all tenants. The Authorization for Release of Information/ Privacy Act Notice Form HUD-9886 is expected to be signed by all in the household over the age of 18.
Condition: During our testing, we noted that one file did not have the Form HUD-9886 in the file.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one tenant was missing the signed Form HUD-9886.
Cause: The Housing Specialist did not obtain or retain the HUD-9886 in the file.
Effect: File did not contain required information per 24 CFR 5.213 and 5.230. No effect on Housing Assistance payment.
Repeat Finding: No
Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-005 Supporting Documentation in Tenant Files - Authorization for Release of Information
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR 5.212 and 5.230, the Organization is required to retain a signed privacy notice from all tenants. The Authorization for Release of Information/ Privacy Act Notice Form HUD-9886 is expected to be signed by all in the household over the age of 18.
Condition: During our testing, we noted that one file did not have the Form HUD-9886 in the file.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one tenant was missing the signed Form HUD-9886.
Cause: The Housing Specialist did not obtain or retain the HUD-9886 in the file.
Effect: File did not contain required information per 24 CFR 5.213 and 5.230. No effect on Housing Assistance payment.
Repeat Finding: No
Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-005 Supporting Documentation in Tenant Files - Authorization for Release of Information
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR 5.212 and 5.230, the Organization is required to retain a signed privacy notice from all tenants. The Authorization for Release of Information/ Privacy Act Notice Form HUD-9886 is expected to be signed by all in the household over the age of 18.
Condition: During our testing, we noted that one file did not have the Form HUD-9886 in the file.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one tenant was missing the signed Form HUD-9886.
Cause: The Housing Specialist did not obtain or retain the HUD-9886 in the file.
Effect: File did not contain required information per 24 CFR 5.213 and 5.230. No effect on Housing Assistance payment.
Repeat Finding: No
Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-005 Supporting Documentation in Tenant Files - Authorization for Release of Information
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR 5.212 and 5.230, the Organization is required to retain a signed privacy notice from all tenants. The Authorization for Release of Information/ Privacy Act Notice Form HUD-9886 is expected to be signed by all in the household over the age of 18.
Condition: During our testing, we noted that one file did not have the Form HUD-9886 in the file.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one tenant was missing the signed Form HUD-9886.
Cause: The Housing Specialist did not obtain or retain the HUD-9886 in the file.
Effect: File did not contain required information per 24 CFR 5.213 and 5.230. No effect on Housing Assistance payment.
Repeat Finding: No
Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-005 Supporting Documentation in Tenant Files - Authorization for Release of Information
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR 5.212 and 5.230, the Organization is required to retain a signed privacy notice from all tenants. The Authorization for Release of Information/ Privacy Act Notice Form HUD-9886 is expected to be signed by all in the household over the age of 18.
Condition: During our testing, we noted that one file did not have the Form HUD-9886 in the file.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one tenant was missing the signed Form HUD-9886.
Cause: The Housing Specialist did not obtain or retain the HUD-9886 in the file.
Effect: File did not contain required information per 24 CFR 5.213 and 5.230. No effect on Housing Assistance payment.
Repeat Finding: No
Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-006 Supporting Documentation for Family Size
Repeat of Finding 2022-003
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Allowable Costs, Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status.
Condition: During our testing, we noted one file where one of the adults was identified as an eligible citizen; however, there was no documentation of dependent SSN cards or Declaration of Citizen Form retained in the file.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one file did not contain the appropriate information to document that two of the individuals in the household were eligible citizens.
Cause: The Housing Specialist did not obtain the appropriate form to document the dependents' citizenship.
Effect: File did not contain required information per 24 CFR 982.201. The program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: Yes
Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-006 Supporting Documentation for Family Size
Repeat of Finding 2022-003
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Allowable Costs, Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status.
Condition: During our testing, we noted one file where one of the adults was identified as an eligible citizen; however, there was no documentation of dependent SSN cards or Declaration of Citizen Form retained in the file.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one file did not contain the appropriate information to document that two of the individuals in the household were eligible citizens.
Cause: The Housing Specialist did not obtain the appropriate form to document the dependents' citizenship.
Effect: File did not contain required information per 24 CFR 982.201. The program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: Yes
Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-006 Supporting Documentation for Family Size
Repeat of Finding 2022-003
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Allowable Costs, Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status.
Condition: During our testing, we noted one file where one of the adults was identified as an eligible citizen; however, there was no documentation of dependent SSN cards or Declaration of Citizen Form retained in the file.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one file did not contain the appropriate information to document that two of the individuals in the household were eligible citizens.
Cause: The Housing Specialist did not obtain the appropriate form to document the dependents' citizenship.
Effect: File did not contain required information per 24 CFR 982.201. The program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: Yes
Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-006 Supporting Documentation for Family Size
Repeat of Finding 2022-003
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Allowable Costs, Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status.
Condition: During our testing, we noted one file where one of the adults was identified as an eligible citizen; however, there was no documentation of dependent SSN cards or Declaration of Citizen Form retained in the file.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one file did not contain the appropriate information to document that two of the individuals in the household were eligible citizens.
Cause: The Housing Specialist did not obtain the appropriate form to document the dependents' citizenship.
Effect: File did not contain required information per 24 CFR 982.201. The program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: Yes
Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-006 Supporting Documentation for Family Size
Repeat of Finding 2022-003
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Allowable Costs, Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status.
Condition: During our testing, we noted one file where one of the adults was identified as an eligible citizen; however, there was no documentation of dependent SSN cards or Declaration of Citizen Form retained in the file.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one file did not contain the appropriate information to document that two of the individuals in the household were eligible citizens.
Cause: The Housing Specialist did not obtain the appropriate form to document the dependents' citizenship.
Effect: File did not contain required information per 24 CFR 982.201. The program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: Yes
Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-007 Rent Reasonableness
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Special Tests – Rent Reasonableness
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater
Criteria or specific requirement: Per 24 CFR 982.308, tenant file must include letter or written statement from the landlord when rent is increased or a copy of new lease agreement signed by tenant and landlord with increased rent amount.
Condition: During our testing, we noted one file where the most current lease was dated in 2014 with a rental amount that did not match the Form 50058 while the address did match.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one tenant file did not have an updated lease or letter from the landlord with the increased rent amount listed.
Cause: The Housing Specialist did not obtain/retain proper written documentation for tenant rent increase.
Effect: File did not contain required information per 24 CFR 982.308. The program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: No
Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-007 Rent Reasonableness
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Special Tests – Rent Reasonableness
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater
Criteria or specific requirement: Per 24 CFR 982.308, tenant file must include letter or written statement from the landlord when rent is increased or a copy of new lease agreement signed by tenant and landlord with increased rent amount.
Condition: During our testing, we noted one file where the most current lease was dated in 2014 with a rental amount that did not match the Form 50058 while the address did match.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one tenant file did not have an updated lease or letter from the landlord with the increased rent amount listed.
Cause: The Housing Specialist did not obtain/retain proper written documentation for tenant rent increase.
Effect: File did not contain required information per 24 CFR 982.308. The program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: No
Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-007 Rent Reasonableness
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Special Tests – Rent Reasonableness
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater
Criteria or specific requirement: Per 24 CFR 982.308, tenant file must include letter or written statement from the landlord when rent is increased or a copy of new lease agreement signed by tenant and landlord with increased rent amount.
Condition: During our testing, we noted one file where the most current lease was dated in 2014 with a rental amount that did not match the Form 50058 while the address did match.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one tenant file did not have an updated lease or letter from the landlord with the increased rent amount listed.
Cause: The Housing Specialist did not obtain/retain proper written documentation for tenant rent increase.
Effect: File did not contain required information per 24 CFR 982.308. The program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: No
Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-007 Rent Reasonableness
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Special Tests – Rent Reasonableness
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater
Criteria or specific requirement: Per 24 CFR 982.308, tenant file must include letter or written statement from the landlord when rent is increased or a copy of new lease agreement signed by tenant and landlord with increased rent amount.
Condition: During our testing, we noted one file where the most current lease was dated in 2014 with a rental amount that did not match the Form 50058 while the address did match.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one tenant file did not have an updated lease or letter from the landlord with the increased rent amount listed.
Cause: The Housing Specialist did not obtain/retain proper written documentation for tenant rent increase.
Effect: File did not contain required information per 24 CFR 982.308. The program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: No
Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-007 Rent Reasonableness
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Special Tests – Rent Reasonableness
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater
Criteria or specific requirement: Per 24 CFR 982.308, tenant file must include letter or written statement from the landlord when rent is increased or a copy of new lease agreement signed by tenant and landlord with increased rent amount.
Condition: During our testing, we noted one file where the most current lease was dated in 2014 with a rental amount that did not match the Form 50058 while the address did match.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one tenant file did not have an updated lease or letter from the landlord with the increased rent amount listed.
Cause: The Housing Specialist did not obtain/retain proper written documentation for tenant rent increase.
Effect: File did not contain required information per 24 CFR 982.308. The program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: No
Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-008 Approval of Invoices
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Allowable Activities, Allowable Costs
Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter
Criteria or specific requirement: The Organization did not follow their internal policies and retain supporting documentation related to the approval of all ACH and check transactions.
Condition: During our testing, we noted that the Organization did not have supporting documentation to support approval of eight cash disbursements of the forty disbursements before the payment was made.
Questioned costs: None
Context: From a sample of 40 cash disbursements selected for testing, seven ACH's and one check did not have the supporting documentation to prove the disbursements were approved prior to payment being made.
Cause: The Organization had turnover in the finance department during 2023 and either supporting documentation for the approval was misplaced or not retained for eight cash disbursements.
Effect: The effect of not having a documented approval is noncompliance with Uniform Guidance.
Repeat Finding: No
Recommendation: We recommend that Management review their current policies and procedures to ensure there is an appropriate review and approval process in place and the finance department retains this supporting documentation (either paper approval or electronic approval).
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-008 Approval of Invoices
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Allowable Activities, Allowable Costs
Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter
Criteria or specific requirement: The Organization did not follow their internal policies and retain supporting documentation related to the approval of all ACH and check transactions.
Condition: During our testing, we noted that the Organization did not have supporting documentation to support approval of eight cash disbursements of the forty disbursements before the payment was made.
Questioned costs: None
Context: From a sample of 40 cash disbursements selected for testing, seven ACH's and one check did not have the supporting documentation to prove the disbursements were approved prior to payment being made.
Cause: The Organization had turnover in the finance department during 2023 and either supporting documentation for the approval was misplaced or not retained for eight cash disbursements.
Effect: The effect of not having a documented approval is noncompliance with Uniform Guidance.
Repeat Finding: No
Recommendation: We recommend that Management review their current policies and procedures to ensure there is an appropriate review and approval process in place and the finance department retains this supporting documentation (either paper approval or electronic approval).
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-008 Approval of Invoices
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Allowable Activities, Allowable Costs
Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter
Criteria or specific requirement: The Organization did not follow their internal policies and retain supporting documentation related to the approval of all ACH and check transactions.
Condition: During our testing, we noted that the Organization did not have supporting documentation to support approval of eight cash disbursements of the forty disbursements before the payment was made.
Questioned costs: None
Context: From a sample of 40 cash disbursements selected for testing, seven ACH's and one check did not have the supporting documentation to prove the disbursements were approved prior to payment being made.
Cause: The Organization had turnover in the finance department during 2023 and either supporting documentation for the approval was misplaced or not retained for eight cash disbursements.
Effect: The effect of not having a documented approval is noncompliance with Uniform Guidance.
Repeat Finding: No
Recommendation: We recommend that Management review their current policies and procedures to ensure there is an appropriate review and approval process in place and the finance department retains this supporting documentation (either paper approval or electronic approval).
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-008 Approval of Invoices
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Allowable Activities, Allowable Costs
Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter
Criteria or specific requirement: The Organization did not follow their internal policies and retain supporting documentation related to the approval of all ACH and check transactions.
Condition: During our testing, we noted that the Organization did not have supporting documentation to support approval of eight cash disbursements of the forty disbursements before the payment was made.
Questioned costs: None
Context: From a sample of 40 cash disbursements selected for testing, seven ACH's and one check did not have the supporting documentation to prove the disbursements were approved prior to payment being made.
Cause: The Organization had turnover in the finance department during 2023 and either supporting documentation for the approval was misplaced or not retained for eight cash disbursements.
Effect: The effect of not having a documented approval is noncompliance with Uniform Guidance.
Repeat Finding: No
Recommendation: We recommend that Management review their current policies and procedures to ensure there is an appropriate review and approval process in place and the finance department retains this supporting documentation (either paper approval or electronic approval).
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-008 Approval of Invoices
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Allowable Activities, Allowable Costs
Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter
Criteria or specific requirement: The Organization did not follow their internal policies and retain supporting documentation related to the approval of all ACH and check transactions.
Condition: During our testing, we noted that the Organization did not have supporting documentation to support approval of eight cash disbursements of the forty disbursements before the payment was made.
Questioned costs: None
Context: From a sample of 40 cash disbursements selected for testing, seven ACH's and one check did not have the supporting documentation to prove the disbursements were approved prior to payment being made.
Cause: The Organization had turnover in the finance department during 2023 and either supporting documentation for the approval was misplaced or not retained for eight cash disbursements.
Effect: The effect of not having a documented approval is noncompliance with Uniform Guidance.
Repeat Finding: No
Recommendation: We recommend that Management review their current policies and procedures to ensure there is an appropriate review and approval process in place and the finance department retains this supporting documentation (either paper approval or electronic approval).
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-004 Asset Supporting Documentation for Family Income Examinations
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA)
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR 985.516, the tenant file and application must obtain 3rd party verification of assets.
Condition: During our testing, we noted two tenant files out of 60 files tested were missing the required supporting asset documentation.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, two tenants were missing asset documentation.
Cause: The Housing Specialist did not obtain (or retain) the documentation to support the assets listed on Form 50058.
Effect: File did not contain required information per 24 CFR 985.516. A program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: No
Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-004 Asset Supporting Documentation for Family Income Examinations
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA)
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR 985.516, the tenant file and application must obtain 3rd party verification of assets.
Condition: During our testing, we noted two tenant files out of 60 files tested were missing the required supporting asset documentation.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, two tenants were missing asset documentation.
Cause: The Housing Specialist did not obtain (or retain) the documentation to support the assets listed on Form 50058.
Effect: File did not contain required information per 24 CFR 985.516. A program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: No
Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-004 Asset Supporting Documentation for Family Income Examinations
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA)
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR 985.516, the tenant file and application must obtain 3rd party verification of assets.
Condition: During our testing, we noted two tenant files out of 60 files tested were missing the required supporting asset documentation.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, two tenants were missing asset documentation.
Cause: The Housing Specialist did not obtain (or retain) the documentation to support the assets listed on Form 50058.
Effect: File did not contain required information per 24 CFR 985.516. A program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: No
Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-004 Asset Supporting Documentation for Family Income Examinations
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA)
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR 985.516, the tenant file and application must obtain 3rd party verification of assets.
Condition: During our testing, we noted two tenant files out of 60 files tested were missing the required supporting asset documentation.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, two tenants were missing asset documentation.
Cause: The Housing Specialist did not obtain (or retain) the documentation to support the assets listed on Form 50058.
Effect: File did not contain required information per 24 CFR 985.516. A program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: No
Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-004 Asset Supporting Documentation for Family Income Examinations
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA)
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR 985.516, the tenant file and application must obtain 3rd party verification of assets.
Condition: During our testing, we noted two tenant files out of 60 files tested were missing the required supporting asset documentation.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, two tenants were missing asset documentation.
Cause: The Housing Specialist did not obtain (or retain) the documentation to support the assets listed on Form 50058.
Effect: File did not contain required information per 24 CFR 985.516. A program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: No
Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-005 Supporting Documentation in Tenant Files - Authorization for Release of Information
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR 5.212 and 5.230, the Organization is required to retain a signed privacy notice from all tenants. The Authorization for Release of Information/ Privacy Act Notice Form HUD-9886 is expected to be signed by all in the household over the age of 18.
Condition: During our testing, we noted that one file did not have the Form HUD-9886 in the file.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one tenant was missing the signed Form HUD-9886.
Cause: The Housing Specialist did not obtain or retain the HUD-9886 in the file.
Effect: File did not contain required information per 24 CFR 5.213 and 5.230. No effect on Housing Assistance payment.
Repeat Finding: No
Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-005 Supporting Documentation in Tenant Files - Authorization for Release of Information
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR 5.212 and 5.230, the Organization is required to retain a signed privacy notice from all tenants. The Authorization for Release of Information/ Privacy Act Notice Form HUD-9886 is expected to be signed by all in the household over the age of 18.
Condition: During our testing, we noted that one file did not have the Form HUD-9886 in the file.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one tenant was missing the signed Form HUD-9886.
Cause: The Housing Specialist did not obtain or retain the HUD-9886 in the file.
Effect: File did not contain required information per 24 CFR 5.213 and 5.230. No effect on Housing Assistance payment.
Repeat Finding: No
Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-005 Supporting Documentation in Tenant Files - Authorization for Release of Information
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR 5.212 and 5.230, the Organization is required to retain a signed privacy notice from all tenants. The Authorization for Release of Information/ Privacy Act Notice Form HUD-9886 is expected to be signed by all in the household over the age of 18.
Condition: During our testing, we noted that one file did not have the Form HUD-9886 in the file.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one tenant was missing the signed Form HUD-9886.
Cause: The Housing Specialist did not obtain or retain the HUD-9886 in the file.
Effect: File did not contain required information per 24 CFR 5.213 and 5.230. No effect on Housing Assistance payment.
Repeat Finding: No
Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-005 Supporting Documentation in Tenant Files - Authorization for Release of Information
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR 5.212 and 5.230, the Organization is required to retain a signed privacy notice from all tenants. The Authorization for Release of Information/ Privacy Act Notice Form HUD-9886 is expected to be signed by all in the household over the age of 18.
Condition: During our testing, we noted that one file did not have the Form HUD-9886 in the file.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one tenant was missing the signed Form HUD-9886.
Cause: The Housing Specialist did not obtain or retain the HUD-9886 in the file.
Effect: File did not contain required information per 24 CFR 5.213 and 5.230. No effect on Housing Assistance payment.
Repeat Finding: No
Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-005 Supporting Documentation in Tenant Files - Authorization for Release of Information
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR 5.212 and 5.230, the Organization is required to retain a signed privacy notice from all tenants. The Authorization for Release of Information/ Privacy Act Notice Form HUD-9886 is expected to be signed by all in the household over the age of 18.
Condition: During our testing, we noted that one file did not have the Form HUD-9886 in the file.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one tenant was missing the signed Form HUD-9886.
Cause: The Housing Specialist did not obtain or retain the HUD-9886 in the file.
Effect: File did not contain required information per 24 CFR 5.213 and 5.230. No effect on Housing Assistance payment.
Repeat Finding: No
Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-006 Supporting Documentation for Family Size
Repeat of Finding 2022-003
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Allowable Costs, Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status.
Condition: During our testing, we noted one file where one of the adults was identified as an eligible citizen; however, there was no documentation of dependent SSN cards or Declaration of Citizen Form retained in the file.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one file did not contain the appropriate information to document that two of the individuals in the household were eligible citizens.
Cause: The Housing Specialist did not obtain the appropriate form to document the dependents' citizenship.
Effect: File did not contain required information per 24 CFR 982.201. The program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: Yes
Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-006 Supporting Documentation for Family Size
Repeat of Finding 2022-003
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Allowable Costs, Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status.
Condition: During our testing, we noted one file where one of the adults was identified as an eligible citizen; however, there was no documentation of dependent SSN cards or Declaration of Citizen Form retained in the file.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one file did not contain the appropriate information to document that two of the individuals in the household were eligible citizens.
Cause: The Housing Specialist did not obtain the appropriate form to document the dependents' citizenship.
Effect: File did not contain required information per 24 CFR 982.201. The program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: Yes
Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-006 Supporting Documentation for Family Size
Repeat of Finding 2022-003
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Allowable Costs, Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status.
Condition: During our testing, we noted one file where one of the adults was identified as an eligible citizen; however, there was no documentation of dependent SSN cards or Declaration of Citizen Form retained in the file.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one file did not contain the appropriate information to document that two of the individuals in the household were eligible citizens.
Cause: The Housing Specialist did not obtain the appropriate form to document the dependents' citizenship.
Effect: File did not contain required information per 24 CFR 982.201. The program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: Yes
Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-006 Supporting Documentation for Family Size
Repeat of Finding 2022-003
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Allowable Costs, Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status.
Condition: During our testing, we noted one file where one of the adults was identified as an eligible citizen; however, there was no documentation of dependent SSN cards or Declaration of Citizen Form retained in the file.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one file did not contain the appropriate information to document that two of the individuals in the household were eligible citizens.
Cause: The Housing Specialist did not obtain the appropriate form to document the dependents' citizenship.
Effect: File did not contain required information per 24 CFR 982.201. The program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: Yes
Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-006 Supporting Documentation for Family Size
Repeat of Finding 2022-003
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Allowable Costs, Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status.
Condition: During our testing, we noted one file where one of the adults was identified as an eligible citizen; however, there was no documentation of dependent SSN cards or Declaration of Citizen Form retained in the file.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one file did not contain the appropriate information to document that two of the individuals in the household were eligible citizens.
Cause: The Housing Specialist did not obtain the appropriate form to document the dependents' citizenship.
Effect: File did not contain required information per 24 CFR 982.201. The program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: Yes
Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-007 Rent Reasonableness
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Special Tests – Rent Reasonableness
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater
Criteria or specific requirement: Per 24 CFR 982.308, tenant file must include letter or written statement from the landlord when rent is increased or a copy of new lease agreement signed by tenant and landlord with increased rent amount.
Condition: During our testing, we noted one file where the most current lease was dated in 2014 with a rental amount that did not match the Form 50058 while the address did match.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one tenant file did not have an updated lease or letter from the landlord with the increased rent amount listed.
Cause: The Housing Specialist did not obtain/retain proper written documentation for tenant rent increase.
Effect: File did not contain required information per 24 CFR 982.308. The program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: No
Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-007 Rent Reasonableness
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Special Tests – Rent Reasonableness
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater
Criteria or specific requirement: Per 24 CFR 982.308, tenant file must include letter or written statement from the landlord when rent is increased or a copy of new lease agreement signed by tenant and landlord with increased rent amount.
Condition: During our testing, we noted one file where the most current lease was dated in 2014 with a rental amount that did not match the Form 50058 while the address did match.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one tenant file did not have an updated lease or letter from the landlord with the increased rent amount listed.
Cause: The Housing Specialist did not obtain/retain proper written documentation for tenant rent increase.
Effect: File did not contain required information per 24 CFR 982.308. The program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: No
Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-007 Rent Reasonableness
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Special Tests – Rent Reasonableness
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater
Criteria or specific requirement: Per 24 CFR 982.308, tenant file must include letter or written statement from the landlord when rent is increased or a copy of new lease agreement signed by tenant and landlord with increased rent amount.
Condition: During our testing, we noted one file where the most current lease was dated in 2014 with a rental amount that did not match the Form 50058 while the address did match.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one tenant file did not have an updated lease or letter from the landlord with the increased rent amount listed.
Cause: The Housing Specialist did not obtain/retain proper written documentation for tenant rent increase.
Effect: File did not contain required information per 24 CFR 982.308. The program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: No
Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-007 Rent Reasonableness
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Special Tests – Rent Reasonableness
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater
Criteria or specific requirement: Per 24 CFR 982.308, tenant file must include letter or written statement from the landlord when rent is increased or a copy of new lease agreement signed by tenant and landlord with increased rent amount.
Condition: During our testing, we noted one file where the most current lease was dated in 2014 with a rental amount that did not match the Form 50058 while the address did match.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one tenant file did not have an updated lease or letter from the landlord with the increased rent amount listed.
Cause: The Housing Specialist did not obtain/retain proper written documentation for tenant rent increase.
Effect: File did not contain required information per 24 CFR 982.308. The program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: No
Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-007 Rent Reasonableness
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Special Tests – Rent Reasonableness
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater
Criteria or specific requirement: Per 24 CFR 982.308, tenant file must include letter or written statement from the landlord when rent is increased or a copy of new lease agreement signed by tenant and landlord with increased rent amount.
Condition: During our testing, we noted one file where the most current lease was dated in 2014 with a rental amount that did not match the Form 50058 while the address did match.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one tenant file did not have an updated lease or letter from the landlord with the increased rent amount listed.
Cause: The Housing Specialist did not obtain/retain proper written documentation for tenant rent increase.
Effect: File did not contain required information per 24 CFR 982.308. The program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: No
Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-008 Approval of Invoices
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Allowable Activities, Allowable Costs
Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter
Criteria or specific requirement: The Organization did not follow their internal policies and retain supporting documentation related to the approval of all ACH and check transactions.
Condition: During our testing, we noted that the Organization did not have supporting documentation to support approval of eight cash disbursements of the forty disbursements before the payment was made.
Questioned costs: None
Context: From a sample of 40 cash disbursements selected for testing, seven ACH's and one check did not have the supporting documentation to prove the disbursements were approved prior to payment being made.
Cause: The Organization had turnover in the finance department during 2023 and either supporting documentation for the approval was misplaced or not retained for eight cash disbursements.
Effect: The effect of not having a documented approval is noncompliance with Uniform Guidance.
Repeat Finding: No
Recommendation: We recommend that Management review their current policies and procedures to ensure there is an appropriate review and approval process in place and the finance department retains this supporting documentation (either paper approval or electronic approval).
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-008 Approval of Invoices
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Allowable Activities, Allowable Costs
Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter
Criteria or specific requirement: The Organization did not follow their internal policies and retain supporting documentation related to the approval of all ACH and check transactions.
Condition: During our testing, we noted that the Organization did not have supporting documentation to support approval of eight cash disbursements of the forty disbursements before the payment was made.
Questioned costs: None
Context: From a sample of 40 cash disbursements selected for testing, seven ACH's and one check did not have the supporting documentation to prove the disbursements were approved prior to payment being made.
Cause: The Organization had turnover in the finance department during 2023 and either supporting documentation for the approval was misplaced or not retained for eight cash disbursements.
Effect: The effect of not having a documented approval is noncompliance with Uniform Guidance.
Repeat Finding: No
Recommendation: We recommend that Management review their current policies and procedures to ensure there is an appropriate review and approval process in place and the finance department retains this supporting documentation (either paper approval or electronic approval).
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-008 Approval of Invoices
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Allowable Activities, Allowable Costs
Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter
Criteria or specific requirement: The Organization did not follow their internal policies and retain supporting documentation related to the approval of all ACH and check transactions.
Condition: During our testing, we noted that the Organization did not have supporting documentation to support approval of eight cash disbursements of the forty disbursements before the payment was made.
Questioned costs: None
Context: From a sample of 40 cash disbursements selected for testing, seven ACH's and one check did not have the supporting documentation to prove the disbursements were approved prior to payment being made.
Cause: The Organization had turnover in the finance department during 2023 and either supporting documentation for the approval was misplaced or not retained for eight cash disbursements.
Effect: The effect of not having a documented approval is noncompliance with Uniform Guidance.
Repeat Finding: No
Recommendation: We recommend that Management review their current policies and procedures to ensure there is an appropriate review and approval process in place and the finance department retains this supporting documentation (either paper approval or electronic approval).
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-008 Approval of Invoices
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Allowable Activities, Allowable Costs
Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter
Criteria or specific requirement: The Organization did not follow their internal policies and retain supporting documentation related to the approval of all ACH and check transactions.
Condition: During our testing, we noted that the Organization did not have supporting documentation to support approval of eight cash disbursements of the forty disbursements before the payment was made.
Questioned costs: None
Context: From a sample of 40 cash disbursements selected for testing, seven ACH's and one check did not have the supporting documentation to prove the disbursements were approved prior to payment being made.
Cause: The Organization had turnover in the finance department during 2023 and either supporting documentation for the approval was misplaced or not retained for eight cash disbursements.
Effect: The effect of not having a documented approval is noncompliance with Uniform Guidance.
Repeat Finding: No
Recommendation: We recommend that Management review their current policies and procedures to ensure there is an appropriate review and approval process in place and the finance department retains this supporting documentation (either paper approval or electronic approval).
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
2023-008 Approval of Invoices
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Allowable Activities, Allowable Costs
Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter
Criteria or specific requirement: The Organization did not follow their internal policies and retain supporting documentation related to the approval of all ACH and check transactions.
Condition: During our testing, we noted that the Organization did not have supporting documentation to support approval of eight cash disbursements of the forty disbursements before the payment was made.
Questioned costs: None
Context: From a sample of 40 cash disbursements selected for testing, seven ACH's and one check did not have the supporting documentation to prove the disbursements were approved prior to payment being made.
Cause: The Organization had turnover in the finance department during 2023 and either supporting documentation for the approval was misplaced or not retained for eight cash disbursements.
Effect: The effect of not having a documented approval is noncompliance with Uniform Guidance.
Repeat Finding: No
Recommendation: We recommend that Management review their current policies and procedures to ensure there is an appropriate review and approval process in place and the finance department retains this supporting documentation (either paper approval or electronic approval).
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.