Audit 319262

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Award Identification Number and Year: W1245VO164 - 2023 Award Period: January 1, 2023 – December 31, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires time and effort documentation for all individuals whose time is coded to the federal grants. Condition: During our testing we noted that the organization is allocating payroll costs based on time study done several years ago and did not have time and effort documentation to verify actual time spent agrees on federal program agrees to the allocation being used. Questioned costs: None Context: During our testing of payroll, it was noted that 8 out of 19 payroll charges had no time and effort documented for the wages charged to the program. Procedures to document time and effort were implemented in July 2023. Cause: The client has been using allocation determined several years ago and was unaware of time and effort documentation requirements until finding during prior year audit. Procedures to document time and effort were implemented in July 2023. Effect: Noncompliance with HUD requirements. Repeat Finding: Yes 2022-001 Recommendation: We recommend, the entity develop a method to track actual time spent on various programs to time allocated to federal award programs. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Award Identification Number and Year: W1245VO0164 - 2023 Award Period: January 1, 2023 – December 31, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The Housing Choice Voucher Cluster requires the entity to determine reasonable rent for new tenants and tenants whose rent increased. Condition: During our testing, we noted that the entity did not have internal controls over rent reasonableness calculations to verify they were completed and maintained in the files for new tenants and tenants whose rent increased from the prior year. Questioned costs: None Context: During our testing we noted that the entity did not have documentation for rent reasonableness calculations for five current tenants and completed and maintained in the file. In addition another four tenants had calculations completed but did not have documentation of approval by Housing Authority personnel. Cause: Due to staffing issues management was not able to make sure these were completed as required. Effect: Noncompliance with HUD requirements. Repeat Finding: Yes – 2022-002 Recommendation: We recommend, the entity develop a process to verify that rent reasonableness calculations are completed and maintained in the files. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Award Identification Number and Year: W1245VO0164 - 2023 Award Period: January 1, 2023 – December 31, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The Housing Choice Voucher Cluster requires the entity to determine tenants are eligible, rent is properly calculated, and required forms are maintained in the files. Condition: During our testing we noted that the entity did not have internal controls over tenant files. One file had error in rent calculation and four tenant files did not have documentation of signed annual certification or release of information forms. Questioned costs: None Context: During our testing we noted that the entity did not have internal controls over tenant files. One file had error in rent calculation and four tenant files did not have documentation of signed annual certification or release of information forms. Cause: Due to staffing issues management was not able to make sure these were completed as required. Effect: Noncompliance with HUD requirements. Repeat Finding: No Recommendation: We recommend, the entity develop a process to verify that rent calculations are correctly performed and all required forms are maintained in tenant files. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Award Identification Number and Year: W1245VO164 - 2023 Award Period: January 1, 2023 – December 31, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires time and effort documentation for all individuals whose time is coded to the federal grants. Condition: During our testing we noted that the organization is allocating payroll costs based on time study done several years ago and did not have time and effort documentation to verify actual time spent agrees on federal program agrees to the allocation being used. Questioned costs: None Context: During our testing of payroll, it was noted that 8 out of 19 payroll charges had no time and effort documented for the wages charged to the program. Procedures to document time and effort were implemented in July 2023. Cause: The client has been using allocation determined several years ago and was unaware of time and effort documentation requirements until finding during prior year audit. Procedures to document time and effort were implemented in July 2023. Effect: Noncompliance with HUD requirements. Repeat Finding: Yes 2022-001 Recommendation: We recommend, the entity develop a method to track actual time spent on various programs to time allocated to federal award programs. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Award Identification Number and Year: W1245VO0164 - 2023 Award Period: January 1, 2023 – December 31, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The Housing Choice Voucher Cluster requires the entity to determine reasonable rent for new tenants and tenants whose rent increased. Condition: During our testing, we noted that the entity did not have internal controls over rent reasonableness calculations to verify they were completed and maintained in the files for new tenants and tenants whose rent increased from the prior year. Questioned costs: None Context: During our testing we noted that the entity did not have documentation for rent reasonableness calculations for five current tenants and completed and maintained in the file. In addition another four tenants had calculations completed but did not have documentation of approval by Housing Authority personnel. Cause: Due to staffing issues management was not able to make sure these were completed as required. Effect: Noncompliance with HUD requirements. Repeat Finding: Yes – 2022-002 Recommendation: We recommend, the entity develop a process to verify that rent reasonableness calculations are completed and maintained in the files. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Award Identification Number and Year: W1245VO0164 - 2023 Award Period: January 1, 2023 – December 31, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The Housing Choice Voucher Cluster requires the entity to determine tenants are eligible, rent is properly calculated, and required forms are maintained in the files. Condition: During our testing we noted that the entity did not have internal controls over tenant files. One file had error in rent calculation and four tenant files did not have documentation of signed annual certification or release of information forms. Questioned costs: None Context: During our testing we noted that the entity did not have internal controls over tenant files. One file had error in rent calculation and four tenant files did not have documentation of signed annual certification or release of information forms. Cause: Due to staffing issues management was not able to make sure these were completed as required. Effect: Noncompliance with HUD requirements. Repeat Finding: No Recommendation: We recommend, the entity develop a process to verify that rent calculations are correctly performed and all required forms are maintained in tenant files. Views of responsible officials: There is no disagreement with the audit finding.