Audit 401098

2025-003 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 Allowable Costs/Activities Allowed and Unallowed Significant Deficiency in Internal Control over Compliance Criteria: Uniform Guidance requires that documentation be maintained to support allocations of payroll across federal programs and allocations of expenses be supported by actual expenditures, not budgeted expenditures. Condition: The Commission has a process in place for employees to track hours worked to federal and non federal programs but payroll allocations are made based on budgets expectations, not actual, and review is not occurring to determine if allocations need to be updated throughout the year. Cause: The Commission experienced significant turnover in staff in 2024 and 2025 so that review process is not in place throughout the year. 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): No. 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 to review actual time spent on federal programs be compared to budgeted allocations and adjustments be made to reflect actual time spent on those programs. Views of Responsible Officials: Management agrees with finding.

2025-004 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 and require specific information be maintained in tenant files. 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 seven of the 60 tenant files tested, the tenant’s payment amounts were calculated incorrectly. Five of the seven files with errors would have been de minimis errors which the compliance supplement notes as an error of less than $30 per month. Also, two tenants’ social security number documentation in the tenant files did not match Form 50058. Cause: The Commission experienced significant turnover in 2024 and 2025 which resulted in errors being made in the calculations. Effect: The reporting of an incorrect tenant rent payment could result in incorrect assistance being awarded. Incorrect social security numbers could result in the tenant receiving assistance under multiple locations. 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): Yes, Finding 2024-004. 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.