Audit 369807

Criteria - Public Housing Authorities administering the Housing Voucher Cluster's Section 8 Housing Choice Voucher Program (Assistance Listing No. 14.871) are required to submit a Voucher for Payment of Annual Contributions and Operating Statement on a monthly basis to HUD electronically via the Voucher Management System (VMS). HUD relies on the audit of key line items to determine reasonableness of the data submitted for the purposes of calculating funding under the program. Condition - Restricted net position (RNP) and cash contained significant discrepancies between the reported amounts and the Authority's underlying records of approximately $209,000 and $69,000, respectively. Cause - The Authority's data input process was not sufficient to ensure accurate reporting. Effect - Inaccurate reporting of key line items such as RNP and cash may adversely affect HUD's funding determinations and program oversight. This increases the risk of under or over-funding and may result in compliance findings or corrective actions. Questioned Costs - None identified. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Recommendation - We recommend that management establish and implement a reconciliation process to ensure the reported figures on the VMS submission accurately reflect the underlying accounting records. Management's Response - (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendation. Please see below for additional comments and action taken. (b) Action taken - The Authority will review and verify key line items (including restricted net position, unrestricted net position and cash and investments) against the general ledger prior to VMS submission. Supervisory review will be required to confirm accuracy. ( c) Planned implementation date - The Authority plans to implement procedures during the year ending December 31, 2025 to resolve the reported finding.