Finding 2023-001: Tenant File Maintenance (Material Weakness)
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Federal Assistance Listing Number: 14.871
Compliance Requirement: Eligibility
Repeat Finding: Yes
Criteria:
In accordance with various subsections of 24 CFR Section 982, the Authority is required to:
• obtain and review documentation supporting United States of America citizenship;
• execute release and consent form approved by the Authority or the Department of
Housing and Urban Development ("HUD") authorizing any depository or private source
of income, or any Federal, State, or local agency, to furnish or release to HUD such
information as the Authority or HUD determines to be necessary; and
• verify income listed on the HUD Form 50058.
The Authority is required to have controls in place to ensure recertifications are properly and
timely completed.
Condition:
The Authority did not:
• retain documentation supporting United States of America citizenship;
Context:
Of the 40 selections made, the Authority did not:
• retain documentation supporting United States of America citizenship for three
selections;
Effect:
The Authority was unable to demonstrate:
• United States of America citizenship; The Authority's internal controls in place did not prevent the Authority from missing required
documentation, authorization, and income support in its tenant files. The control over review and
approval of the annual recertifications was not properly implemented.
Questioned Costs:
Unknown
Auditor's Recommendation:
The Authority should review and enhance its internal controls to ensure:
• management obtains and reviews documentation supporting United States of America
citizenship;
• tenants provide release forms prior to obtaining necessary documentation;
• management verifies income listed on the HUD Form 50058; and
• recertifications are consistently reviewed and approved.
Management’s Response and Corrective Action Plan
See schedule of corrective action plan.
Finding 2023-002: Utility Allowance Schedules, HQS Inspections, and HAP Vouchers
(Material Weakness)
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Federal Assistance Listing Number: 14.871
Compliance Requirement: Special Tests and Provisions
Repeat Finding: Yes
Criteria:
In accordance with various subsections of 24 CFR Section 982, the Authority is required to:
• review utility rate data at least annually and update the utility allowance schedule as
necessary;
• inspect the unit leased to a family at least annually to determine if the unit meets Housing
Quality Standards ("HQS"); and
Condition:
The Authority did not:
• provide updated utility allowance schedules;
• inspect the units to determine if they meet HQS; and
Context:
Of the 40 selections made, the Authority did not:
• provide updated utility allowance schedules for three selections;
• provide support for inspections to determine if the unit met HQS for eight selections; and
Effect:
The Authority was unable to demonstrate:
• the utility allowance schedules were accurate;
• the units met HQS; and were accurate Questioned Costs:
None.
Auditor's Recommendation:
The Authority should review and enhance its internal controls to ensure:
• the utility allowance schedules are reviewed and updated as necessary at least annually;
• units are inspected annually under HQS; and
Management’s Response and Corrective Action Plan
See schedule of corrective action plan.
Cause:
The Authority's internal controls in place did not prevent the Authority from missing required
utility allowance and HQS compliance requirements.
Finding 2023-003: Payroll Documentation (Significant Deficiency)
Federal Program: All Programs
Type of Finding: Internal control Significant Deficiency and Noncompliance
Repeat Finding: Yes
Criteria:
Wicomico County Housing Authority (the "Authority") should maintain appropriate controls
over the payroll process to prevent or detect inaccurate or unsupported costs.
Condition:
The Authority's controls over the payroll process were not properly implemented, resulting in
employees' timesheets not being reviewed or approved.
Context:
The Authority did not obtain a supervisor's review and approval of timesheets for hourly
employees.
Effect:
Payroll could be misstated for hourly employees claiming hours or overtime worked and/or for
employees paid a salary or wage that is unapproved by the Board.
Cause:
The Authority's internal controls over the payroll process were not appropriately implemented
surrounding timesheet review and approval.
Auditor's Recommendation:
The Authority should review and enhance its internal controls to ensure every timesheet is
reviewed and approved by the hourly employee's supervisor.
Management’s Response and Corrective Action Plan
See schedule of corrective action plan.
Finding 2023-003: Payroll Documentation (Significant Deficiency)
Federal Program: All Programs
Type of Finding: Internal control Significant Deficiency and Noncompliance
Repeat Finding: Yes
Criteria:
Wicomico County Housing Authority (the "Authority") should maintain appropriate controls
over the payroll process to prevent or detect inaccurate or unsupported costs.
Condition:
The Authority's controls over the payroll process were not properly implemented, resulting in
employees' timesheets not being reviewed or approved.
Context:
The Authority did not obtain a supervisor's review and approval of timesheets for hourly
employees.
Effect:
Payroll could be misstated for hourly employees claiming hours or overtime worked and/or for
employees paid a salary or wage that is unapproved by the Board.
Cause:
The Authority's internal controls over the payroll process were not appropriately implemented
surrounding timesheet review and approval.
Auditor's Recommendation:
The Authority should review and enhance its internal controls to ensure every timesheet is
reviewed and approved by the hourly employee's supervisor.
Management’s Response and Corrective Action Plan
See schedule of corrective action plan.
Finding 2023-003: Payroll Documentation (Significant Deficiency)
Federal Program: All Programs
Type of Finding: Internal control Significant Deficiency and Noncompliance
Repeat Finding: Yes
Criteria:
Wicomico County Housing Authority (the "Authority") should maintain appropriate controls
over the payroll process to prevent or detect inaccurate or unsupported costs.
Condition:
The Authority's controls over the payroll process were not properly implemented, resulting in
employees' timesheets not being reviewed or approved.
Context:
The Authority did not obtain a supervisor's review and approval of timesheets for hourly
employees.
Effect:
Payroll could be misstated for hourly employees claiming hours or overtime worked and/or for
employees paid a salary or wage that is unapproved by the Board.
Cause:
The Authority's internal controls over the payroll process were not appropriately implemented
surrounding timesheet review and approval.
Auditor's Recommendation:
The Authority should review and enhance its internal controls to ensure every timesheet is
reviewed and approved by the hourly employee's supervisor.
Management’s Response and Corrective Action Plan
See schedule of corrective action plan.
Finding 2023-003: Payroll Documentation (Significant Deficiency)
Federal Program: All Programs
Type of Finding: Internal control Significant Deficiency and Noncompliance
Repeat Finding: Yes
Criteria:
Wicomico County Housing Authority (the "Authority") should maintain appropriate controls
over the payroll process to prevent or detect inaccurate or unsupported costs.
Condition:
The Authority's controls over the payroll process were not properly implemented, resulting in
employees' timesheets not being reviewed or approved.
Context:
The Authority did not obtain a supervisor's review and approval of timesheets for hourly
employees.
Effect:
Payroll could be misstated for hourly employees claiming hours or overtime worked and/or for
employees paid a salary or wage that is unapproved by the Board.
Cause:
The Authority's internal controls over the payroll process were not appropriately implemented
surrounding timesheet review and approval.
Auditor's Recommendation:
The Authority should review and enhance its internal controls to ensure every timesheet is
reviewed and approved by the hourly employee's supervisor.
Management’s Response and Corrective Action Plan
See schedule of corrective action plan.
Finding 2023-001: Tenant File Maintenance (Material Weakness)
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Federal Assistance Listing Number: 14.871
Compliance Requirement: Eligibility
Repeat Finding: Yes
Criteria:
In accordance with various subsections of 24 CFR Section 982, the Authority is required to:
• obtain and review documentation supporting United States of America citizenship;
• execute release and consent form approved by the Authority or the Department of
Housing and Urban Development ("HUD") authorizing any depository or private source
of income, or any Federal, State, or local agency, to furnish or release to HUD such
information as the Authority or HUD determines to be necessary; and
• verify income listed on the HUD Form 50058.
The Authority is required to have controls in place to ensure recertifications are properly and
timely completed.
Condition:
The Authority did not:
• retain documentation supporting United States of America citizenship;
Context:
Of the 40 selections made, the Authority did not:
• retain documentation supporting United States of America citizenship for three
selections;
Effect:
The Authority was unable to demonstrate:
• United States of America citizenship; The Authority's internal controls in place did not prevent the Authority from missing required
documentation, authorization, and income support in its tenant files. The control over review and
approval of the annual recertifications was not properly implemented.
Questioned Costs:
Unknown
Auditor's Recommendation:
The Authority should review and enhance its internal controls to ensure:
• management obtains and reviews documentation supporting United States of America
citizenship;
• tenants provide release forms prior to obtaining necessary documentation;
• management verifies income listed on the HUD Form 50058; and
• recertifications are consistently reviewed and approved.
Management’s Response and Corrective Action Plan
See schedule of corrective action plan.
Finding 2023-002: Utility Allowance Schedules, HQS Inspections, and HAP Vouchers
(Material Weakness)
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Federal Assistance Listing Number: 14.871
Compliance Requirement: Special Tests and Provisions
Repeat Finding: Yes
Criteria:
In accordance with various subsections of 24 CFR Section 982, the Authority is required to:
• review utility rate data at least annually and update the utility allowance schedule as
necessary;
• inspect the unit leased to a family at least annually to determine if the unit meets Housing
Quality Standards ("HQS"); and
Condition:
The Authority did not:
• provide updated utility allowance schedules;
• inspect the units to determine if they meet HQS; and
Context:
Of the 40 selections made, the Authority did not:
• provide updated utility allowance schedules for three selections;
• provide support for inspections to determine if the unit met HQS for eight selections; and
Effect:
The Authority was unable to demonstrate:
• the utility allowance schedules were accurate;
• the units met HQS; and were accurate Questioned Costs:
None.
Auditor's Recommendation:
The Authority should review and enhance its internal controls to ensure:
• the utility allowance schedules are reviewed and updated as necessary at least annually;
• units are inspected annually under HQS; and
Management’s Response and Corrective Action Plan
See schedule of corrective action plan.
Cause:
The Authority's internal controls in place did not prevent the Authority from missing required
utility allowance and HQS compliance requirements.
Finding 2023-001: Tenant File Maintenance (Material Weakness)
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Federal Assistance Listing Number: 14.871
Compliance Requirement: Eligibility
Repeat Finding: Yes
Criteria:
In accordance with various subsections of 24 CFR Section 982, the Authority is required to:
• obtain and review documentation supporting United States of America citizenship;
• execute release and consent form approved by the Authority or the Department of
Housing and Urban Development ("HUD") authorizing any depository or private source
of income, or any Federal, State, or local agency, to furnish or release to HUD such
information as the Authority or HUD determines to be necessary; and
• verify income listed on the HUD Form 50058.
The Authority is required to have controls in place to ensure recertifications are properly and
timely completed.
Condition:
The Authority did not:
• retain documentation supporting United States of America citizenship;
Context:
Of the 40 selections made, the Authority did not:
• retain documentation supporting United States of America citizenship for three
selections;
Effect:
The Authority was unable to demonstrate:
• United States of America citizenship; The Authority's internal controls in place did not prevent the Authority from missing required
documentation, authorization, and income support in its tenant files. The control over review and
approval of the annual recertifications was not properly implemented.
Questioned Costs:
Unknown
Auditor's Recommendation:
The Authority should review and enhance its internal controls to ensure:
• management obtains and reviews documentation supporting United States of America
citizenship;
• tenants provide release forms prior to obtaining necessary documentation;
• management verifies income listed on the HUD Form 50058; and
• recertifications are consistently reviewed and approved.
Management’s Response and Corrective Action Plan
See schedule of corrective action plan.
Finding 2023-002: Utility Allowance Schedules, HQS Inspections, and HAP Vouchers
(Material Weakness)
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Federal Assistance Listing Number: 14.871
Compliance Requirement: Special Tests and Provisions
Repeat Finding: Yes
Criteria:
In accordance with various subsections of 24 CFR Section 982, the Authority is required to:
• review utility rate data at least annually and update the utility allowance schedule as
necessary;
• inspect the unit leased to a family at least annually to determine if the unit meets Housing
Quality Standards ("HQS"); and
Condition:
The Authority did not:
• provide updated utility allowance schedules;
• inspect the units to determine if they meet HQS; and
Context:
Of the 40 selections made, the Authority did not:
• provide updated utility allowance schedules for three selections;
• provide support for inspections to determine if the unit met HQS for eight selections; and
Effect:
The Authority was unable to demonstrate:
• the utility allowance schedules were accurate;
• the units met HQS; and were accurate Questioned Costs:
None.
Auditor's Recommendation:
The Authority should review and enhance its internal controls to ensure:
• the utility allowance schedules are reviewed and updated as necessary at least annually;
• units are inspected annually under HQS; and
Management’s Response and Corrective Action Plan
See schedule of corrective action plan.
Cause:
The Authority's internal controls in place did not prevent the Authority from missing required
utility allowance and HQS compliance requirements.
Finding 2023-003: Payroll Documentation (Significant Deficiency)
Federal Program: All Programs
Type of Finding: Internal control Significant Deficiency and Noncompliance
Repeat Finding: Yes
Criteria:
Wicomico County Housing Authority (the "Authority") should maintain appropriate controls
over the payroll process to prevent or detect inaccurate or unsupported costs.
Condition:
The Authority's controls over the payroll process were not properly implemented, resulting in
employees' timesheets not being reviewed or approved.
Context:
The Authority did not obtain a supervisor's review and approval of timesheets for hourly
employees.
Effect:
Payroll could be misstated for hourly employees claiming hours or overtime worked and/or for
employees paid a salary or wage that is unapproved by the Board.
Cause:
The Authority's internal controls over the payroll process were not appropriately implemented
surrounding timesheet review and approval.
Auditor's Recommendation:
The Authority should review and enhance its internal controls to ensure every timesheet is
reviewed and approved by the hourly employee's supervisor.
Management’s Response and Corrective Action Plan
See schedule of corrective action plan.
Finding 2023-003: Payroll Documentation (Significant Deficiency)
Federal Program: All Programs
Type of Finding: Internal control Significant Deficiency and Noncompliance
Repeat Finding: Yes
Criteria:
Wicomico County Housing Authority (the "Authority") should maintain appropriate controls
over the payroll process to prevent or detect inaccurate or unsupported costs.
Condition:
The Authority's controls over the payroll process were not properly implemented, resulting in
employees' timesheets not being reviewed or approved.
Context:
The Authority did not obtain a supervisor's review and approval of timesheets for hourly
employees.
Effect:
Payroll could be misstated for hourly employees claiming hours or overtime worked and/or for
employees paid a salary or wage that is unapproved by the Board.
Cause:
The Authority's internal controls over the payroll process were not appropriately implemented
surrounding timesheet review and approval.
Auditor's Recommendation:
The Authority should review and enhance its internal controls to ensure every timesheet is
reviewed and approved by the hourly employee's supervisor.
Management’s Response and Corrective Action Plan
See schedule of corrective action plan.
Finding 2023-003: Payroll Documentation (Significant Deficiency)
Federal Program: All Programs
Type of Finding: Internal control Significant Deficiency and Noncompliance
Repeat Finding: Yes
Criteria:
Wicomico County Housing Authority (the "Authority") should maintain appropriate controls
over the payroll process to prevent or detect inaccurate or unsupported costs.
Condition:
The Authority's controls over the payroll process were not properly implemented, resulting in
employees' timesheets not being reviewed or approved.
Context:
The Authority did not obtain a supervisor's review and approval of timesheets for hourly
employees.
Effect:
Payroll could be misstated for hourly employees claiming hours or overtime worked and/or for
employees paid a salary or wage that is unapproved by the Board.
Cause:
The Authority's internal controls over the payroll process were not appropriately implemented
surrounding timesheet review and approval.
Auditor's Recommendation:
The Authority should review and enhance its internal controls to ensure every timesheet is
reviewed and approved by the hourly employee's supervisor.
Management’s Response and Corrective Action Plan
See schedule of corrective action plan.
Finding 2023-003: Payroll Documentation (Significant Deficiency)
Federal Program: All Programs
Type of Finding: Internal control Significant Deficiency and Noncompliance
Repeat Finding: Yes
Criteria:
Wicomico County Housing Authority (the "Authority") should maintain appropriate controls
over the payroll process to prevent or detect inaccurate or unsupported costs.
Condition:
The Authority's controls over the payroll process were not properly implemented, resulting in
employees' timesheets not being reviewed or approved.
Context:
The Authority did not obtain a supervisor's review and approval of timesheets for hourly
employees.
Effect:
Payroll could be misstated for hourly employees claiming hours or overtime worked and/or for
employees paid a salary or wage that is unapproved by the Board.
Cause:
The Authority's internal controls over the payroll process were not appropriately implemented
surrounding timesheet review and approval.
Auditor's Recommendation:
The Authority should review and enhance its internal controls to ensure every timesheet is
reviewed and approved by the hourly employee's supervisor.
Management’s Response and Corrective Action Plan
See schedule of corrective action plan.
Finding 2023-001: Tenant File Maintenance (Material Weakness)
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Federal Assistance Listing Number: 14.871
Compliance Requirement: Eligibility
Repeat Finding: Yes
Criteria:
In accordance with various subsections of 24 CFR Section 982, the Authority is required to:
• obtain and review documentation supporting United States of America citizenship;
• execute release and consent form approved by the Authority or the Department of
Housing and Urban Development ("HUD") authorizing any depository or private source
of income, or any Federal, State, or local agency, to furnish or release to HUD such
information as the Authority or HUD determines to be necessary; and
• verify income listed on the HUD Form 50058.
The Authority is required to have controls in place to ensure recertifications are properly and
timely completed.
Condition:
The Authority did not:
• retain documentation supporting United States of America citizenship;
Context:
Of the 40 selections made, the Authority did not:
• retain documentation supporting United States of America citizenship for three
selections;
Effect:
The Authority was unable to demonstrate:
• United States of America citizenship; The Authority's internal controls in place did not prevent the Authority from missing required
documentation, authorization, and income support in its tenant files. The control over review and
approval of the annual recertifications was not properly implemented.
Questioned Costs:
Unknown
Auditor's Recommendation:
The Authority should review and enhance its internal controls to ensure:
• management obtains and reviews documentation supporting United States of America
citizenship;
• tenants provide release forms prior to obtaining necessary documentation;
• management verifies income listed on the HUD Form 50058; and
• recertifications are consistently reviewed and approved.
Management’s Response and Corrective Action Plan
See schedule of corrective action plan.
Finding 2023-002: Utility Allowance Schedules, HQS Inspections, and HAP Vouchers
(Material Weakness)
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Federal Assistance Listing Number: 14.871
Compliance Requirement: Special Tests and Provisions
Repeat Finding: Yes
Criteria:
In accordance with various subsections of 24 CFR Section 982, the Authority is required to:
• review utility rate data at least annually and update the utility allowance schedule as
necessary;
• inspect the unit leased to a family at least annually to determine if the unit meets Housing
Quality Standards ("HQS"); and
Condition:
The Authority did not:
• provide updated utility allowance schedules;
• inspect the units to determine if they meet HQS; and
Context:
Of the 40 selections made, the Authority did not:
• provide updated utility allowance schedules for three selections;
• provide support for inspections to determine if the unit met HQS for eight selections; and
Effect:
The Authority was unable to demonstrate:
• the utility allowance schedules were accurate;
• the units met HQS; and were accurate Questioned Costs:
None.
Auditor's Recommendation:
The Authority should review and enhance its internal controls to ensure:
• the utility allowance schedules are reviewed and updated as necessary at least annually;
• units are inspected annually under HQS; and
Management’s Response and Corrective Action Plan
See schedule of corrective action plan.
Cause:
The Authority's internal controls in place did not prevent the Authority from missing required
utility allowance and HQS compliance requirements.