Audit 366813

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Federal Award Identification Number and Year: W193 - 2024 Award Period: January 1, 2024 – December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The Housing Choice Voucher Cluster requires the Authority to determine reasonable rent for new tenants and tenants whose rent increased. Condition: During our testing, we noted that the Authority’s internal controls were not properly designed to ensure rent reasonableness calculations were completed timely. Questioned Costs: None Context: During our testing we noted that the Authority had documentation for rent reasonableness calculations for one new tenant completed but it was completed after the rate change was effective. Cause: The Authority was not able to make sure these were completed as required. Effect: Noncompliance with HUD requirements. Repeat Finding: No Recommendation: We recommend, the Authority develop a process to ensure that rent reasonableness calculations are completed timely. 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 Numbers: 14.871 and 14.879 Federal Award Identification Number and Year: W193 - 2024 Award Period: January 1, 2024 – December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The Housing Choice Voucher Cluster requires the Authority to determine reasonable rent for new tenants and tenants whose rent increased. Condition: During our testing, we noted that the Authority’s internal controls were not properly designed to ensure rent reasonableness calculations were completed timely. Questioned Costs: None Context: During our testing we noted that the Authority had documentation for rent reasonableness calculations for one new tenant completed but it was completed after the rate change was effective. Cause: The Authority was not able to make sure these were completed as required. Effect: Noncompliance with HUD requirements. Repeat Finding: No Recommendation: We recommend, the Authority develop a process to ensure that rent reasonableness calculations are completed timely. Views of Responsible Officials: There is no disagreement with the audit finding.

Time and Effort Documentation Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Federal Award Identification Number and Year: W193 - 2024 Award Period: January 1, 2024 – December 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance 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 Authority is allocating payroll costs based on percentages and did not have time and effort documentation tracking for the full year that supported percentages used. Questioned Costs: None Context: During our testing of payroll, it was noted that spreadsheet documenting actual hours for various programs was not updated for the full year. Cause: The Authority has been using allocation percentage determined during prior year which they believe to be reasonable. Effect: Noncompliance with HUD requirements. Repeat Finding: No Recommendation: We recommend, the Authority develop a method to track actual time spent on various programs to support time allocated to federal award programs. Views of Responsible Officials: There is no disagreement with the audit finding.

Time and Effort Documentation Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Federal Award Identification Number and Year: W193 - 2024 Award Period: January 1, 2024 – December 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance 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 Authority is allocating payroll costs based on percentages and did not have time and effort documentation tracking for the full year that supported percentages used. Questioned Costs: None Context: During our testing of payroll, it was noted that spreadsheet documenting actual hours for various programs was not updated for the full year. Cause: The Authority has been using allocation percentage determined during prior year which they believe to be reasonable. Effect: Noncompliance with HUD requirements. Repeat Finding: No Recommendation: We recommend, the Authority develop a method to track actual time spent on various programs to support time allocated to federal award programs. Views of Responsible Officials: There is no disagreement with the audit finding.