Audit 44738

Current Year Findings: 2022-001 Federal Program: United States Department of Agriculture CFDA # 10.415 Rural Rental Housing Loans Criteria: The PHA is required to accurately report tenant income to the USDA utilizing the Management Interactive Network Connection (MINC) system. MINC is an interactive system that collects project budget and tenant residency status information. This system is used to evaluate tenant eligibility requirements under 7 CFR 3560.152 and determines the amount of rental assistance to be remitted to the housing authority. Conditions / Context: The control deficiency exists due to one instance out of a sample size of eight, in which the Authority?s personnel did not accurately report the income of tje tenant into the USDA MINC system which is utilized to determine the amount of rental assistance. Cause: The cause of the deficiency is related to the manual entry of the tenant?s income into the MINC system that was previously verified upon the tenant?s re-certification. Effect: The error in reporting the income of the tenant into the MINC system has resulted in incorrect amounts being paid to the housing authority for rental assistance. The housing authority over reported income resulting in an amount remitted being less than the amount allowed. Recommendation: We recommend the Authority review their policies and procedures to ensure that the information entered into MINC for tenants is submitted timely and accurately. Management?s Response: Lamar Housing Authority will begin making a copy of what is put in MINC and will check income from the worksheet we get at the beginning of each month before we submit it we will make changes to what was submitted into MINC, this will be a double check of income to make sure it was entered into MINC correctly. Prior Year Findings: None

Current Year Findings: 2022-001 Federal Program: United States Department of Agriculture CFDA # 10.415 Rural Rental Housing Loans Criteria: The PHA is required to accurately report tenant income to the USDA utilizing the Management Interactive Network Connection (MINC) system. MINC is an interactive system that collects project budget and tenant residency status information. This system is used to evaluate tenant eligibility requirements under 7 CFR 3560.152 and determines the amount of rental assistance to be remitted to the housing authority. Conditions / Context: The control deficiency exists due to one instance out of a sample size of eight, in which the Authority?s personnel did not accurately report the income of tje tenant into the USDA MINC system which is utilized to determine the amount of rental assistance. Cause: The cause of the deficiency is related to the manual entry of the tenant?s income into the MINC system that was previously verified upon the tenant?s re-certification. Effect: The error in reporting the income of the tenant into the MINC system has resulted in incorrect amounts being paid to the housing authority for rental assistance. The housing authority over reported income resulting in an amount remitted being less than the amount allowed. Recommendation: We recommend the Authority review their policies and procedures to ensure that the information entered into MINC for tenants is submitted timely and accurately. Management?s Response: Lamar Housing Authority will begin making a copy of what is put in MINC and will check income from the worksheet we get at the beginning of each month before we submit it we will make changes to what was submitted into MINC, this will be a double check of income to make sure it was entered into MINC correctly. Prior Year Findings: None