Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner.
Identification of repeat finding: Yes, 2023-001
Condition: HUD forms must be certified by an authorized user.
Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to.
Effect: The forms were not certified by the correct individual.
Context: Auditor reviewed source documents noting incorrect certifier.
Cause: Lack of oversight by management agent.
Recommendation: A procedure be implemented to ensure that the Project timely changes the certifier on forms when applicable.
Information on universe: Total population was 37 files.
Sample Size: 5 files were selected for testing.
Identification of repeat finding: No
Condition: Missing required documentation. Enterprise Income Verification (EIV) reports were not able to be run due to the license expiring and the person with the license no longer working at the organization.
Criteria: HUD requires EIV forms to be run, monthly, quarterly and annually.
Effect: Required documents were not able to be run which could result in inaccurate tenant information.
Context: Auditor reviewed tenant files noting the forms were not present in the tenant files.
Cause: Lack of oversight by management agent. The one individual with the EIV license was no longer working at the Organization.
Recommendation: A system should be in place requiring more than one individual to have an EIV license and ensure the license does not lapse.
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner.
Identification of repeat finding: Yes, 2023-001
Condition: HUD forms must be certified by an authorized user.
Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to.
Effect: The forms were not certified by the correct individual.
Context: Auditor reviewed source documents noting incorrect certifier.
Cause: Lack of oversight by management agent.
Recommendation: A procedure be implemented to ensure that the Project timely changes the certifier on forms when applicable.
Information on universe: Total population was 37 files.
Sample Size: 5 files were selected for testing.
Identification of repeat finding: No
Condition: Missing required documentation. Enterprise Income Verification (EIV) reports were not able to be run due to the license expiring and the person with the license no longer working at the organization.
Criteria: HUD requires EIV forms to be run, monthly, quarterly and annually.
Effect: Required documents were not able to be run which could result in inaccurate tenant information.
Context: Auditor reviewed tenant files noting the forms were not present in the tenant files.
Cause: Lack of oversight by management agent. The one individual with the EIV license was no longer working at the Organization.
Recommendation: A system should be in place requiring more than one individual to have an EIV license and ensure the license does not lapse.
Information on universe: Total population was 37 files.
Sample Size: 5 files were selected for testing.
Identification of repeat finding: No
Condition: Tenant files had missing required forms, inaccurate calculations and missing tenant signatures.
Criteria: All tenants must be recertified annually and all recertification paperwork including third party verifications must be in the tenant file.
Effect: Tenant income and/or expenses could be inaccurate.
Context: Auditor selected tenant files and noted inaccurate and missing forms as well as inaccurate rent calculations.
Cause: Turnover at the management agent.
Recommendation: Continue to hire and train additional staff to fill the staffing shortages.
Information on universe: Total population was 37 files.
Sample Size: 5 files were selected for testing.
Identification of repeat finding: No
Condition: Tenant files had missing required forms, inaccurate calculations and missing tenant signatures.
Criteria: All tenants must be recertified annually and all recertification paperwork including third party verifications must be in the tenant file.
Effect: Tenant income and/or expenses could be inaccurate.
Context: Auditor selected tenant files and noted inaccurate and missing forms as well as inaccurate rent calculations.
Cause: Turnover at the management agent.
Recommendation: Continue to hire and train additional staff to fill the staffing shortages.
Information on universe: Payroll allocation testing
Sample size: Five employees selected for internal control testing.
Identification of repeat finding: No
Condition: Additional detail and documentation is needed on time sheets for allocation to projects from the housing director for front line services. Housing director rate should be adjusted for front line services performed.
Criteria: All allocable time should have sufficient detail of duties performed and at the correct rate.
Effect: The property could be charged the wrong amounts for payroll.
Context: Auditor selected timesheets for payroll testing.
Cause: Lack of oversight
Recommendation: Job duties should be documented for each position and a policy should be implemented to ensure all time sheets detail out the duties performed and are charged at the correct rate.
Information on universe: Payroll allocation testing
Sample size: Five employees selected for internal control testing.
Identification of repeat finding: No
Condition: Additional detail and documentation is needed on time sheets for allocation to projects from the housing director for front line services. Housing director rate should be adjusted for front line services performed.
Criteria: All allocable time should have sufficient detail of duties performed and at the correct rate.
Effect: The property could be charged the wrong amounts for payroll.
Context: Auditor selected timesheets for payroll testing.
Cause: Lack of oversight
Recommendation: Job duties should be documented for each position and a policy should be implemented to ensure all time sheets detail out the duties performed and are charged at the correct rate.
Information on universe: Payroll control testing.
Sample size: Five employees selected for internal control testing.
Identification of repeat finding: Yes, 2023-002
Condition: Lack of review and approvals on time allocated and charged to the property as well as one employee missing allocations.
Criteria: Allocation sheets should be reviewed and approved.
Effect: The property could be charged the wrong amounts for payroll.
Context: Auditor selected timesheets for payroll control testing.
Cause: Lack of review and approvals.
Recommendation: Allocation sheets should be reviewed in detail and approved.
Information on universe: Payroll control testing.
Sample size: Five employees selected for internal control testing.
Identification of repeat finding: Yes, 2023-002
Condition: Lack of review and approvals on time allocated and charged to the property as well as one employee missing allocations.
Criteria: Allocation sheets should be reviewed and approved.
Effect: The property could be charged the wrong amounts for payroll.
Context: Auditor selected timesheets for payroll control testing.
Cause: Lack of review and approvals.
Recommendation: Allocation sheets should be reviewed in detail and approved.
Information on universe/ sample size: It was noted during testing that the management agent was not able to perform management duties in a timely manner.
Identification of repeat finding: Yes, 2023-003
Condition: All management agent duties should be performed timely.
Criteria: Tenant units should be filled in a timely manner and existing tenants need to be recertified annually.
Effect: There were significant vacancies and some tenant’s subsidies had expired.
Context: Auditor noted the vacancies and file issues during testing.
Cause: Significant turnover at the management agent.
Recommendation: The management agent should hire a consultant to assist with performing the necessary management agent duties until they are fully staffed.
Information on universe/ sample size: It was noted during testing that the management agent was not able to perform management duties in a timely manner.
Identification of repeat finding: Yes, 2023-003
Condition: All management agent duties should be performed timely.
Criteria: Tenant units should be filled in a timely manner and existing tenants need to be recertified annually.
Effect: There were significant vacancies and some tenant’s subsidies had expired.
Context: Auditor noted the vacancies and file issues during testing.
Cause: Significant turnover at the management agent.
Recommendation: The management agent should hire a consultant to assist with performing the necessary management agent duties until they are fully staffed.
Information on universe: It was noted during testing that the management agent withdrew more than the HUD approved amount from the reserve for replacement account.
Sample size: Monthly reserve activity is tested for compliance.
Identification of repeat finding: No
Condition: A withdrawal from the reserve for replacement was greater than the amount approved by HUD.
Criteria: All reserve for replacement withdrawals should match the amount approved by HUD.
Effect: Reserve funds were spent on items not approved by HUD.
Context: Auditor reviewed the source documents noting the amount withdrew was greater than the approved amount.
Cause: lack of oversight at the management agent.
Recommendation: The excess withdrawal should be returned to the reserve account. Additionally, a procedure should be implemented to ensure that amounts withdrawn from the reserve for replacement account do not exceed the approved amount.
Information on universe: It was noted during testing that the management agent withdrew more than the HUD approved amount from the reserve for replacement account.
Sample size: Monthly reserve activity is tested for compliance.
Identification of repeat finding: No
Condition: A withdrawal from the reserve for replacement was greater than the amount approved by HUD.
Criteria: All reserve for replacement withdrawals should match the amount approved by HUD.
Effect: Reserve funds were spent on items not approved by HUD.
Context: Auditor reviewed the source documents noting the amount withdrew was greater than the approved amount.
Cause: lack of oversight at the management agent.
Recommendation: The excess withdrawal should be returned to the reserve account. Additionally, a procedure should be implemented to ensure that amounts withdrawn from the reserve for replacement account do not exceed the approved amount.
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner.
Identification of repeat finding: Yes, 2023-001
Condition: HUD forms must be certified by an authorized user.
Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to.
Effect: The forms were not certified by the correct individual.
Context: Auditor reviewed source documents noting incorrect certifier.
Cause: Lack of oversight by management agent.
Recommendation: A procedure be implemented to ensure that the Project timely changes the certifier on forms when applicable.
Information on universe: Total population was 37 files.
Sample Size: 5 files were selected for testing.
Identification of repeat finding: No
Condition: Missing required documentation. Enterprise Income Verification (EIV) reports were not able to be run due to the license expiring and the person with the license no longer working at the organization.
Criteria: HUD requires EIV forms to be run, monthly, quarterly and annually.
Effect: Required documents were not able to be run which could result in inaccurate tenant information.
Context: Auditor reviewed tenant files noting the forms were not present in the tenant files.
Cause: Lack of oversight by management agent. The one individual with the EIV license was no longer working at the Organization.
Recommendation: A system should be in place requiring more than one individual to have an EIV license and ensure the license does not lapse.
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner.
Identification of repeat finding: Yes, 2023-001
Condition: HUD forms must be certified by an authorized user.
Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to.
Effect: The forms were not certified by the correct individual.
Context: Auditor reviewed source documents noting incorrect certifier.
Cause: Lack of oversight by management agent.
Recommendation: A procedure be implemented to ensure that the Project timely changes the certifier on forms when applicable.
Information on universe: Total population was 37 files.
Sample Size: 5 files were selected for testing.
Identification of repeat finding: No
Condition: Missing required documentation. Enterprise Income Verification (EIV) reports were not able to be run due to the license expiring and the person with the license no longer working at the organization.
Criteria: HUD requires EIV forms to be run, monthly, quarterly and annually.
Effect: Required documents were not able to be run which could result in inaccurate tenant information.
Context: Auditor reviewed tenant files noting the forms were not present in the tenant files.
Cause: Lack of oversight by management agent. The one individual with the EIV license was no longer working at the Organization.
Recommendation: A system should be in place requiring more than one individual to have an EIV license and ensure the license does not lapse.
Information on universe: Total population was 37 files.
Sample Size: 5 files were selected for testing.
Identification of repeat finding: No
Condition: Tenant files had missing required forms, inaccurate calculations and missing tenant signatures.
Criteria: All tenants must be recertified annually and all recertification paperwork including third party verifications must be in the tenant file.
Effect: Tenant income and/or expenses could be inaccurate.
Context: Auditor selected tenant files and noted inaccurate and missing forms as well as inaccurate rent calculations.
Cause: Turnover at the management agent.
Recommendation: Continue to hire and train additional staff to fill the staffing shortages.
Information on universe: Total population was 37 files.
Sample Size: 5 files were selected for testing.
Identification of repeat finding: No
Condition: Tenant files had missing required forms, inaccurate calculations and missing tenant signatures.
Criteria: All tenants must be recertified annually and all recertification paperwork including third party verifications must be in the tenant file.
Effect: Tenant income and/or expenses could be inaccurate.
Context: Auditor selected tenant files and noted inaccurate and missing forms as well as inaccurate rent calculations.
Cause: Turnover at the management agent.
Recommendation: Continue to hire and train additional staff to fill the staffing shortages.
Information on universe: Payroll allocation testing
Sample size: Five employees selected for internal control testing.
Identification of repeat finding: No
Condition: Additional detail and documentation is needed on time sheets for allocation to projects from the housing director for front line services. Housing director rate should be adjusted for front line services performed.
Criteria: All allocable time should have sufficient detail of duties performed and at the correct rate.
Effect: The property could be charged the wrong amounts for payroll.
Context: Auditor selected timesheets for payroll testing.
Cause: Lack of oversight
Recommendation: Job duties should be documented for each position and a policy should be implemented to ensure all time sheets detail out the duties performed and are charged at the correct rate.
Information on universe: Payroll allocation testing
Sample size: Five employees selected for internal control testing.
Identification of repeat finding: No
Condition: Additional detail and documentation is needed on time sheets for allocation to projects from the housing director for front line services. Housing director rate should be adjusted for front line services performed.
Criteria: All allocable time should have sufficient detail of duties performed and at the correct rate.
Effect: The property could be charged the wrong amounts for payroll.
Context: Auditor selected timesheets for payroll testing.
Cause: Lack of oversight
Recommendation: Job duties should be documented for each position and a policy should be implemented to ensure all time sheets detail out the duties performed and are charged at the correct rate.
Information on universe: Payroll control testing.
Sample size: Five employees selected for internal control testing.
Identification of repeat finding: Yes, 2023-002
Condition: Lack of review and approvals on time allocated and charged to the property as well as one employee missing allocations.
Criteria: Allocation sheets should be reviewed and approved.
Effect: The property could be charged the wrong amounts for payroll.
Context: Auditor selected timesheets for payroll control testing.
Cause: Lack of review and approvals.
Recommendation: Allocation sheets should be reviewed in detail and approved.
Information on universe: Payroll control testing.
Sample size: Five employees selected for internal control testing.
Identification of repeat finding: Yes, 2023-002
Condition: Lack of review and approvals on time allocated and charged to the property as well as one employee missing allocations.
Criteria: Allocation sheets should be reviewed and approved.
Effect: The property could be charged the wrong amounts for payroll.
Context: Auditor selected timesheets for payroll control testing.
Cause: Lack of review and approvals.
Recommendation: Allocation sheets should be reviewed in detail and approved.
Information on universe/ sample size: It was noted during testing that the management agent was not able to perform management duties in a timely manner.
Identification of repeat finding: Yes, 2023-003
Condition: All management agent duties should be performed timely.
Criteria: Tenant units should be filled in a timely manner and existing tenants need to be recertified annually.
Effect: There were significant vacancies and some tenant’s subsidies had expired.
Context: Auditor noted the vacancies and file issues during testing.
Cause: Significant turnover at the management agent.
Recommendation: The management agent should hire a consultant to assist with performing the necessary management agent duties until they are fully staffed.
Information on universe/ sample size: It was noted during testing that the management agent was not able to perform management duties in a timely manner.
Identification of repeat finding: Yes, 2023-003
Condition: All management agent duties should be performed timely.
Criteria: Tenant units should be filled in a timely manner and existing tenants need to be recertified annually.
Effect: There were significant vacancies and some tenant’s subsidies had expired.
Context: Auditor noted the vacancies and file issues during testing.
Cause: Significant turnover at the management agent.
Recommendation: The management agent should hire a consultant to assist with performing the necessary management agent duties until they are fully staffed.
Information on universe: It was noted during testing that the management agent withdrew more than the HUD approved amount from the reserve for replacement account.
Sample size: Monthly reserve activity is tested for compliance.
Identification of repeat finding: No
Condition: A withdrawal from the reserve for replacement was greater than the amount approved by HUD.
Criteria: All reserve for replacement withdrawals should match the amount approved by HUD.
Effect: Reserve funds were spent on items not approved by HUD.
Context: Auditor reviewed the source documents noting the amount withdrew was greater than the approved amount.
Cause: lack of oversight at the management agent.
Recommendation: The excess withdrawal should be returned to the reserve account. Additionally, a procedure should be implemented to ensure that amounts withdrawn from the reserve for replacement account do not exceed the approved amount.
Information on universe: It was noted during testing that the management agent withdrew more than the HUD approved amount from the reserve for replacement account.
Sample size: Monthly reserve activity is tested for compliance.
Identification of repeat finding: No
Condition: A withdrawal from the reserve for replacement was greater than the amount approved by HUD.
Criteria: All reserve for replacement withdrawals should match the amount approved by HUD.
Effect: Reserve funds were spent on items not approved by HUD.
Context: Auditor reviewed the source documents noting the amount withdrew was greater than the approved amount.
Cause: lack of oversight at the management agent.
Recommendation: The excess withdrawal should be returned to the reserve account. Additionally, a procedure should be implemented to ensure that amounts withdrawn from the reserve for replacement account do not exceed the approved amount.