Audit 32684

2022 ? 001 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 - 2022 Award Period: January 1, 2022 ? December 31, 2022 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 18 out of 18 payroll charges had no time and effort documented for the wages charged to the program. Cause: The client has been using allocation determined several years ago and was unaware of time and effort documentation requirements. Effect: Noncompliance with HUD requirements. Repeat Finding: No 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.

2022 ? 002 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 - 2022 Award Period: January 1, 2022 ? December 31, 2022 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 rent reasonableness calculations available for two of seven tenants selected for new tenants and one of eight tenants for current tenants whose rent increased from the prior year. Cause: New inspector was not aware of requirements and 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 reasonableness calculations are completed and maintained in the files. Views of responsible officials: There is no disagreement with the audit finding.

2022 ? 001 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 - 2022 Award Period: January 1, 2022 ? December 31, 2022 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 18 out of 18 payroll charges had no time and effort documented for the wages charged to the program. Cause: The client has been using allocation determined several years ago and was unaware of time and effort documentation requirements. Effect: Noncompliance with HUD requirements. Repeat Finding: No 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.

2022 ? 002 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 - 2022 Award Period: January 1, 2022 ? December 31, 2022 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 rent reasonableness calculations available for two of seven tenants selected for new tenants and one of eight tenants for current tenants whose rent increased from the prior year. Cause: New inspector was not aware of requirements and 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 reasonableness calculations are completed and maintained in the files. Views of responsible officials: There is no disagreement with the audit finding.