The former Executive Director was terminated effective January 9, 2022. The current Executive Director was named to this position effective November 2, 2021. Section 8 Housing Choice Voucher Program Program-CDFA#14.871, Low Rent Program-CDFA#14.850-Allowable Cost/Principles 2022-001-Significantly large interfund account needs to be reduced Criteria and specific requirement In small and medium-sized PHAs, there is a required allocation of expenses between programs. It is often not practical to maintain separate bank accounts and pay each program?s expenses out of its individual bank account. As a result, usually there are interfund payables and receivables between the accounts/programs. Ideally, the interfund amounts should be kept to a minimal amount, if not paid in full at the start of every month. The danger is that the larger the interfund amount is and/or grows, the more difficult it may be to pay off the interfund payable amount. The practical effect is if this happens, one fund is paying the expenses of another fund on a permanent basis. This results in a ?transfer? between the Housing Choice Voucher and Low Rent programs, which federal regulations do not allow. Condition Found At September 30, 2022, the Low Rent Program owes the Housing Choice Voucher Program $165,833. Context The significant interfund balance has existed for several years. Cause Apparent oversight. Effect The possibility exists that the fund that owes the funds might be unable to repay the balance. Recommendation to prevent future occurrences The interfund balance should be paid off as soon as possible. View or Responsible Official The entire balance was paid off subsequent to year-end. Section 8 Housing Choice Voucher Program-CDFA#14.871-Special Tests
2022-002-SEMAP and Quality Control Needs Better Documentation Criteria and Specific Requirement SEMAP is a required method of reporting on the Housing Choice Voucher Program that reports on various aspects of quality control checking. Even in the years that SEMAP is not required to be filed, the Authority should have documented internal control over compliance of the waiting list, tenant files, and inspection functions that is sufficient to detect errors and oversight. Statement on Auditing Standard (SAS) #115 dictates that ?inadequate design of controls over a significant account or process? is defined by the Standard as at least a significant deficiency, if not a material weakness. Condition Found (a)-for the move-ins tested, the move-ins were listed on the waiting list. However, none of the move-ins in our sample were on the top of the waiting list. Often, there were several applicants listed above the move-in participant., without an explanation. There should be notes for why the above applicants listed were not moved in before the one of our sample. Some of the typical reasons we often see is ?voucher expired?, ?no longer interested?, or ?unable to contact.? Most computerized waiting lists allow the Authority to list in ?notes? the reason why applicant was not moved in. Or, manual explanations can be added on the waiting list. The Admin Plan states there are no local preferences. So, giving points for preferences is not a reason that should be listed for early admittance. (b)-The waiting list was tested. However, per the federal regulations, half the sample should start with the waiting list and review the disposition. The other half should start with the current year admits and work back from the waiting list. It appears the sample was not pulled in the above manner. Regarding the definition of the total universe, this has never been exactly defined. If the Authority has received direction from HUD about the definition of the universe, the Authority should follow that direction. (c)-It appears the waiting list was not purged annually, in accordance with the Admin Plan. Cause Apparent oversight. Effect Quality control review over certain aspects of the Housing Choice Voucher Program may not have been adequate, which increases the possibility of error. Recommendation Management should carefully review the directions of preparing SEMAP per the Final Rule issued by HUD. In addition, we recommend that the Executive Director and at least the employee involved with preparation of the SEMAP and quality control review attend a webcast or seminar on preparing SEMAP. Origination Date and Prior Year Reference The finding originated in the prior year. View of Responsible Official We will comply with the auditor?s recommendation.
The former Executive Director was terminated effective January 9, 2022. The current Executive Director was named to this position effective November 2, 2021. Section 8 Housing Choice Voucher Program Program-CDFA#14.871, Low Rent Program-CDFA#14.850-Allowable Cost/Principles 2022-001-Significantly large interfund account needs to be reduced Criteria and specific requirement In small and medium-sized PHAs, there is a required allocation of expenses between programs. It is often not practical to maintain separate bank accounts and pay each program?s expenses out of its individual bank account. As a result, usually there are interfund payables and receivables between the accounts/programs. Ideally, the interfund amounts should be kept to a minimal amount, if not paid in full at the start of every month. The danger is that the larger the interfund amount is and/or grows, the more difficult it may be to pay off the interfund payable amount. The practical effect is if this happens, one fund is paying the expenses of another fund on a permanent basis. This results in a ?transfer? between the Housing Choice Voucher and Low Rent programs, which federal regulations do not allow. Condition Found At September 30, 2022, the Low Rent Program owes the Housing Choice Voucher Program $165,833. Context The significant interfund balance has existed for several years. Cause Apparent oversight. Effect The possibility exists that the fund that owes the funds might be unable to repay the balance. Recommendation to prevent future occurrences The interfund balance should be paid off as soon as possible. View or Responsible Official The entire balance was paid off subsequent to year-end. Section 8 Housing Choice Voucher Program-CDFA#14.871-Special Tests
The former Executive Director was terminated effective January 9, 2022. The current Executive Director was named to this position effective November 2, 2021. Section 8 Housing Choice Voucher Program Program-CDFA#14.871, Low Rent Program-CDFA#14.850-Allowable Cost/Principles 2022-001-Significantly large interfund account needs to be reduced Criteria and specific requirement In small and medium-sized PHAs, there is a required allocation of expenses between programs. It is often not practical to maintain separate bank accounts and pay each program?s expenses out of its individual bank account. As a result, usually there are interfund payables and receivables between the accounts/programs. Ideally, the interfund amounts should be kept to a minimal amount, if not paid in full at the start of every month. The danger is that the larger the interfund amount is and/or grows, the more difficult it may be to pay off the interfund payable amount. The practical effect is if this happens, one fund is paying the expenses of another fund on a permanent basis. This results in a ?transfer? between the Housing Choice Voucher and Low Rent programs, which federal regulations do not allow. Condition Found At September 30, 2022, the Low Rent Program owes the Housing Choice Voucher Program $165,833. Context The significant interfund balance has existed for several years. Cause Apparent oversight. Effect The possibility exists that the fund that owes the funds might be unable to repay the balance. Recommendation to prevent future occurrences The interfund balance should be paid off as soon as possible. View or Responsible Official The entire balance was paid off subsequent to year-end. Section 8 Housing Choice Voucher Program-CDFA#14.871-Special Tests
The former Executive Director was terminated effective January 9, 2022. The current Executive Director was named to this position effective November 2, 2021. Section 8 Housing Choice Voucher Program Program-CDFA#14.871, Low Rent Program-CDFA#14.850-Allowable Cost/Principles 2022-001-Significantly large interfund account needs to be reduced Criteria and specific requirement In small and medium-sized PHAs, there is a required allocation of expenses between programs. It is often not practical to maintain separate bank accounts and pay each program?s expenses out of its individual bank account. As a result, usually there are interfund payables and receivables between the accounts/programs. Ideally, the interfund amounts should be kept to a minimal amount, if not paid in full at the start of every month. The danger is that the larger the interfund amount is and/or grows, the more difficult it may be to pay off the interfund payable amount. The practical effect is if this happens, one fund is paying the expenses of another fund on a permanent basis. This results in a ?transfer? between the Housing Choice Voucher and Low Rent programs, which federal regulations do not allow. Condition Found At September 30, 2022, the Low Rent Program owes the Housing Choice Voucher Program $165,833. Context The significant interfund balance has existed for several years. Cause Apparent oversight. Effect The possibility exists that the fund that owes the funds might be unable to repay the balance. Recommendation to prevent future occurrences The interfund balance should be paid off as soon as possible. View or Responsible Official The entire balance was paid off subsequent to year-end. Section 8 Housing Choice Voucher Program-CDFA#14.871-Special Tests
2022-002-SEMAP and Quality Control Needs Better Documentation Criteria and Specific Requirement SEMAP is a required method of reporting on the Housing Choice Voucher Program that reports on various aspects of quality control checking. Even in the years that SEMAP is not required to be filed, the Authority should have documented internal control over compliance of the waiting list, tenant files, and inspection functions that is sufficient to detect errors and oversight. Statement on Auditing Standard (SAS) #115 dictates that ?inadequate design of controls over a significant account or process? is defined by the Standard as at least a significant deficiency, if not a material weakness. Condition Found (a)-for the move-ins tested, the move-ins were listed on the waiting list. However, none of the move-ins in our sample were on the top of the waiting list. Often, there were several applicants listed above the move-in participant., without an explanation. There should be notes for why the above applicants listed were not moved in before the one of our sample. Some of the typical reasons we often see is ?voucher expired?, ?no longer interested?, or ?unable to contact.? Most computerized waiting lists allow the Authority to list in ?notes? the reason why applicant was not moved in. Or, manual explanations can be added on the waiting list. The Admin Plan states there are no local preferences. So, giving points for preferences is not a reason that should be listed for early admittance. (b)-The waiting list was tested. However, per the federal regulations, half the sample should start with the waiting list and review the disposition. The other half should start with the current year admits and work back from the waiting list. It appears the sample was not pulled in the above manner. Regarding the definition of the total universe, this has never been exactly defined. If the Authority has received direction from HUD about the definition of the universe, the Authority should follow that direction. (c)-It appears the waiting list was not purged annually, in accordance with the Admin Plan. Cause Apparent oversight. Effect Quality control review over certain aspects of the Housing Choice Voucher Program may not have been adequate, which increases the possibility of error. Recommendation Management should carefully review the directions of preparing SEMAP per the Final Rule issued by HUD. In addition, we recommend that the Executive Director and at least the employee involved with preparation of the SEMAP and quality control review attend a webcast or seminar on preparing SEMAP. Origination Date and Prior Year Reference The finding originated in the prior year. View of Responsible Official We will comply with the auditor?s recommendation.
The former Executive Director was terminated effective January 9, 2022. The current Executive Director was named to this position effective November 2, 2021. Section 8 Housing Choice Voucher Program Program-CDFA#14.871, Low Rent Program-CDFA#14.850-Allowable Cost/Principles 2022-001-Significantly large interfund account needs to be reduced Criteria and specific requirement In small and medium-sized PHAs, there is a required allocation of expenses between programs. It is often not practical to maintain separate bank accounts and pay each program?s expenses out of its individual bank account. As a result, usually there are interfund payables and receivables between the accounts/programs. Ideally, the interfund amounts should be kept to a minimal amount, if not paid in full at the start of every month. The danger is that the larger the interfund amount is and/or grows, the more difficult it may be to pay off the interfund payable amount. The practical effect is if this happens, one fund is paying the expenses of another fund on a permanent basis. This results in a ?transfer? between the Housing Choice Voucher and Low Rent programs, which federal regulations do not allow. Condition Found At September 30, 2022, the Low Rent Program owes the Housing Choice Voucher Program $165,833. Context The significant interfund balance has existed for several years. Cause Apparent oversight. Effect The possibility exists that the fund that owes the funds might be unable to repay the balance. Recommendation to prevent future occurrences The interfund balance should be paid off as soon as possible. View or Responsible Official The entire balance was paid off subsequent to year-end. Section 8 Housing Choice Voucher Program-CDFA#14.871-Special Tests
The former Executive Director was terminated effective January 9, 2022. The current Executive Director was named to this position effective November 2, 2021. Section 8 Housing Choice Voucher Program Program-CDFA#14.871, Low Rent Program-CDFA#14.850-Allowable Cost/Principles 2022-001-Significantly large interfund account needs to be reduced Criteria and specific requirement In small and medium-sized PHAs, there is a required allocation of expenses between programs. It is often not practical to maintain separate bank accounts and pay each program?s expenses out of its individual bank account. As a result, usually there are interfund payables and receivables between the accounts/programs. Ideally, the interfund amounts should be kept to a minimal amount, if not paid in full at the start of every month. The danger is that the larger the interfund amount is and/or grows, the more difficult it may be to pay off the interfund payable amount. The practical effect is if this happens, one fund is paying the expenses of another fund on a permanent basis. This results in a ?transfer? between the Housing Choice Voucher and Low Rent programs, which federal regulations do not allow. Condition Found At September 30, 2022, the Low Rent Program owes the Housing Choice Voucher Program $165,833. Context The significant interfund balance has existed for several years. Cause Apparent oversight. Effect The possibility exists that the fund that owes the funds might be unable to repay the balance. Recommendation to prevent future occurrences The interfund balance should be paid off as soon as possible. View or Responsible Official The entire balance was paid off subsequent to year-end. Section 8 Housing Choice Voucher Program-CDFA#14.871-Special Tests