Audit 347412

Finding 2024-003: Financial Data Schedule Housing Choice Voucher – 14.871 Material Weakness/Noncompliance Reporting Criteria: Financial Assessment Sub¬system, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The unaudited submission is due 60 days after the fiscal year end. Condition: The Agency’s unaudited submission was due November 31, 2024 and was not submitted until January 16, 2025. Cause: The Agency utilizes a fee accountant to perform this function on its behalf. The monthly accounting during the year was behind and did not allow for the Agency to complete the unaudited submission by the deadline. Effect or Potential Effect: The Agency was in noncompliance with filing its unaudited information to REAC by the deadline. Recommendation: The Agency should make an effort to have timely monthly financial reports which would allow it to be able to close its year end in a more timely fashion and would allow for the Agency to report to REAC by the deadline. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.

Finding 2024-004: Voucher Management System Housing Choice Voucher – 14.871 Material Weakness/Noncompliance Reporting Criteria: The PHA submits information to HUD electronically monthly via the Voucher Management System (VMS). HUD relies on the audit of the key line items below to determine the reasonableness of the data submitted for the purposes of calculating funding under the program. Condition: The Agency’s process for submitting VMS data is to generate the information from its housing software and then providing that information to its fee accountant to submit. The Agency then reviews the information for correctness. During the month April, 2024, the Agency reported 14 tenant protection vouchers in the “tenant protection” line item and again in the “All Others” field. This error was not identified and corrected during the normal course of business. Cause: The Agency’s controls did not work as intended. Effect or Potential Effect: The Agency overreported the number of HAP transaction. The number of HAP transactions is the basis for HUD determining the administrative fee paid to the Authority. Recommendation: The Agency correct the VMS report and review its controls for ensuring accurate information is transmitted in the VMS system. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.

Finding 2024-003: Financial Data Schedule Housing Choice Voucher – 14.871 Material Weakness/Noncompliance Reporting Criteria: Financial Assessment Sub¬system, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The unaudited submission is due 60 days after the fiscal year end. Condition: The Agency’s unaudited submission was due November 31, 2024 and was not submitted until January 16, 2025. Cause: The Agency utilizes a fee accountant to perform this function on its behalf. The monthly accounting during the year was behind and did not allow for the Agency to complete the unaudited submission by the deadline. Effect or Potential Effect: The Agency was in noncompliance with filing its unaudited information to REAC by the deadline. Recommendation: The Agency should make an effort to have timely monthly financial reports which would allow it to be able to close its year end in a more timely fashion and would allow for the Agency to report to REAC by the deadline. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.

Finding 2024-004: Voucher Management System Housing Choice Voucher – 14.871 Material Weakness/Noncompliance Reporting Criteria: The PHA submits information to HUD electronically monthly via the Voucher Management System (VMS). HUD relies on the audit of the key line items below to determine the reasonableness of the data submitted for the purposes of calculating funding under the program. Condition: The Agency’s process for submitting VMS data is to generate the information from its housing software and then providing that information to its fee accountant to submit. The Agency then reviews the information for correctness. During the month April, 2024, the Agency reported 14 tenant protection vouchers in the “tenant protection” line item and again in the “All Others” field. This error was not identified and corrected during the normal course of business. Cause: The Agency’s controls did not work as intended. Effect or Potential Effect: The Agency overreported the number of HAP transaction. The number of HAP transactions is the basis for HUD determining the administrative fee paid to the Authority. Recommendation: The Agency correct the VMS report and review its controls for ensuring accurate information is transmitted in the VMS system. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.