Audit 377514

Criteria - In accordance with 24 CFR 982.158, the Authority in administering the Housing Voucher Cluster (Assistance Listing No. 14.871/14.879) must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements, in a manner that permits speedy and effective audit. The Authority must retain records for at least three years. In addition, 24 CFR 982.153 and Appendix A of the Voucher Management System’s (VMS) user manual requires the Authority to maintain program and financial records for specific line items including unit months leased (UML) and Housing Assistance Payments (HAP) vouchers. Condition - The Authority was unable to provide supporting documentation for UML and HAP reported in the VMS for 9 out of 12 months during the year. Cause - These deficiencies resulted from inadequate recordkeeping and reconciliation processes for VMS reporting. Effect - Failure to maintain supporting documentation and to reconcile VMS data with financial records results in noncompliance with HUD requirements, questioned costs, and the risk of funding interruptions or sanctions. Inaccurate reporting may also impact management decision-making and reduce the credibility of financial information submitted to HUD. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs - Questioned costs are undetermined as the VMS data was unable to be validated. Repeat Finding - This is not a repeat finding Recommendation - The Authority should designate responsible staff for VMS data preparation, review, and documentation retention and provide training to staff on VMS reporting requirements and reconciliation processes. In addition the Authority should conduct periodic internal reviews to ensure ongoing compliance and data integrity. Management’s Response - (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendations, please see below for action taken. (b) Action taken - The Authority will continue to utilize CBIZ to provide ongoing fee accounting services to incorporate the recommendations listed above on a monthly basis. A comprehensive year-end checklist will continue to be utilized to ensure all financial reports are reconciled to the underlying support. (c) Planned implementation date of corrective action - Completed by March 31, 2026.