Audit 404506

Finding No. 2024-006; Eligibility and Special Tests and Provisions - Material Weakness Name of Federal Agency: Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster (Section 8 Housing Choice Vouchers Program; Emergency Housing Vouchers Program; and Mainstream Vouchers Program) Assistance Listing Numbers: 14.871; 14.879 Federal Award Identification Number and Year: SC002 2024 Criteria In accordance with Uniform Guidance, internal controls are required to be in place to ensure compliance with federal requirements and to maintain complete and accurate participant files as noted in 24 CFR 5.233, 982.158(d) and 982.404. Condition and Context Our testing of 40 participant files noted the following:  No electronic income verification (EIV) was done within the required time period for 1 of 40 participant selections.  No abatement of housing assistance payments of failed unit inspections after 30 day maintenance windows was completed for 1 of 25 participant selections. Cause Tenant lease files are required to be maintained, and tenant eligibility determined in accordance with Uniform Guidance. Effect or Potential Effect The Housing Authority of The City of Columbia is not in compliance with federal requirements regarding Eligibility and Special Tests and Provisions. Questioned Costs Unknown Identification as a Repeat Finding This finding is not a repeat finding. Recommendation The Housing Authority of The City of Columbia should maintain complete and accurate participant files to ensure compliance with federal program requirements. Views of Responsible Officials(s) and Planned Corrective Actions The Housing Authority of The City of Columbia will improve internal controls to maintain complete and accurate participant files to ensure compliance with federal requirements.

Finding No. 2024-007; Activities Allowed or Unallowed - Material Weakness Name of Federal Agency: Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster (Section 8 Housing Choice Vouchers Program; Emergency Housing Vouchers Program; and Mainstream Vouchers Program) Assistance Listing Number: 14.871; 14.879 Federal Award Identification Number and Year: SC002 2024 Condition and Context Testing of interfund receivable balances owed to the Housing Choice Voucher Program (HCVP) and the Emergency Housing Vouchers Program (EHV) from other programs indicated unallowable uses of grant funds as noted in 24 CFR 982.151 and 982.152. Criteria Public Housing Authorities may use HCVP, EHV and Mainstream Voucher funds only for housing assistance payments to participating owners, and for associated administrative fees. Cause During the year ended June 30, 2024, HCV and EHV funds were advanced to other programs resulting in HCVP and EHV funds being used to cover costs for other federal programs and nonfederal programs. Effect or Potential Effect During the year ended June 30, 2024, the Authority used $168,899 of EHV funds and $403,752 of HCVP funds to make advances for $130,842 to the Mainstream Program, and $441,809 to cover costs of other programs in violation of HCVP and EHV program requirements. Questioned Costs $441,809 Identification as a Repeat Finding This finding is not a repeat finding. Recommendation We recommend that the Authority reconcile and settle interfund balances on a timely basis. In addition, we recommend the Authority establish controls over HCVP and EHV grant revenue to ensure funding does not become intermingled with other programs and the outstanding advances are returned to the HCVP and EHV programs. Views of Responsible Officials(s) and Planned Corrective Actions The Authority concurs with the finding and agrees with the recommendation. The Authority has begun the process of reconciling interfund balances to ensure balances are settled on a timely basis and funds are not intermingled with other federal programs.