Audit 370806

Section 8 Housing Choice Voucher Cluster Federal Financial Assistance Listing 14.879 Mainstream Voucher Program Federal Financial Assistance Listing 14.871 Section 8 Housing Choice Voucher Program Reporting Significant Deficiency in Internal Control over Compliance Criteria: Controls over reporting should be in place to ensure that a person other than the person who prepares the reports for submission review the report for accuracy. Condition: The Commission does not have a review process in place to review the VMS reporting on a monthly basis and the annual REAC unaudited submission. Cause: The Commission experienced significant turnover in staff in 2023 and 2024 so the review process was not being completed on the reporting. Effect: Errors in reporting could occur that would not be detected on a timely basis by the Commission. Questioned Costs: None Repeat Finding from Prior Year(s): Yes, finding 2023-002. Recommendation: With the turnover in staffing, we realize the new staff were not aware of the controls system that needed to be in place. We recommend a control process be in place so review of the submission can occur prior to submission for any noticeable errors. Views of Responsible Officials: Management agrees with finding.

Section 8 Housing Choice Voucher Cluster Federal Financial Assistance Listing 14.879 Mainstream Voucher Program Federal Financial Assistance Listing 14.871 Section 8 Housing Choice Voucher Program Eligibility Significant Deficiency in Internal Control over Compliance Criteria: As required by HUD guidelines, the Commission is required to calculate the tenant’s rent payment using documentation from third-party verification used to calculate payment of assistance. Condition: The Commission’s control in place for review of the tenant’s rent payment used for tenant files on annual reviews was not operating effectively. In two of the 60 tenant files tested, the tenant’s payment amounts were calculated incorrectly. Cause: The Housing Representative used the incorrect number of payments for payroll to annualize the income from the third party verification. Effect: The reporting of an incorrect tenant rent payment could result in incorrect assistance being awarded. Questioned Costs: None Context/Sampling: A nonstatistical sample of 60 participants out of 612 participants were selected for eligibility testing. Repeat Finding from Prior Year(s): No Recommendation: With the turnover in staffing, we realize the potential for errors to occur. We recommend additional review being completed on files by a second person to ensure calculations are completed correctly. Views of Responsible Officials: Management agrees with finding.