Audit 44765

Finding 2022-001 - HUD Financial Management Review, Section 8 Housing Choice Voucher Program ? CFDA No. 14.871; Grant period ? year ended June 30, 2022 Criteria The Housing Choice Voucher Program Guidebook and other HUD PIH Notices and Handbooks provide requirements and guidance for which the Section 8 Housing Choice Voucher Program is to be administered and operated under. Condition and Cause In July of 2022, HUD conducted a Financial Management Review of the Housing Authority?s Section 8 Housing Choice Vouchers Program. The Review covered the period of July 1, 2016 through June 30, 2022. The results of the Review included the following Findings: Finding #1 - The HSHA HCV financial records and book of accounts are non-compliant with the regulatory requirement(s) and require significant improvement. Finding #2 - The HSHA does not have a Properly Executed General Depository Agreement. Finding #3 - HSHA is not properly tracking FSS Escrow accounts. Finding #4 - There Are Material Disallowed and Questionable Expenses Charged Directly to the HCV Administrative Account. Finding #5 - The RNP and UNP Account Balances Were Incorrectly Calculated and Incorrectly Reported in the VMS and FDS. Effect Violation of Section 8 Housing Choice Voucher Program requirements (Findings #1 & #2), Failure to report FSS Program activity in accordance with HUD financial reporting requirements (Finding #3), Violation of the Agency?s ACC agreement and appropriation law (Finding #4), Inaccurate VMS reporting (Finding #5). Questioned Costs ? $23,460.60.Recommendation We recommend that the Authority execute the corrective actions that HUD?s QAD outlined in the Review Report dated November 11, 2022. Reply The Authority submitted corrective actions to HUD dated February 23, 2023, which included implementing HUD?s recommended corrective actions. - 40

Finding 2022-001 - HUD Financial Management Review, Section 8 Housing Choice Voucher Program ? CFDA No. 14.871; Grant period ? year ended June 30, 2022 Criteria The Housing Choice Voucher Program Guidebook and other HUD PIH Notices and Handbooks provide requirements and guidance for which the Section 8 Housing Choice Voucher Program is to be administered and operated under. Condition and Cause In July of 2022, HUD conducted a Financial Management Review of the Housing Authority?s Section 8 Housing Choice Vouchers Program. The Review covered the period of July 1, 2016 through June 30, 2022. The results of the Review included the following Findings: Finding #1 - The HSHA HCV financial records and book of accounts are non-compliant with the regulatory requirement(s) and require significant improvement. Finding #2 - The HSHA does not have a Properly Executed General Depository Agreement. Finding #3 - HSHA is not properly tracking FSS Escrow accounts. Finding #4 - There Are Material Disallowed and Questionable Expenses Charged Directly to the HCV Administrative Account. Finding #5 - The RNP and UNP Account Balances Were Incorrectly Calculated and Incorrectly Reported in the VMS and FDS. Effect Violation of Section 8 Housing Choice Voucher Program requirements (Findings #1 & #2), Failure to report FSS Program activity in accordance with HUD financial reporting requirements (Finding #3), Violation of the Agency?s ACC agreement and appropriation law (Finding #4), Inaccurate VMS reporting (Finding #5). Questioned Costs ? $23,460.60.Recommendation We recommend that the Authority execute the corrective actions that HUD?s QAD outlined in the Review Report dated November 11, 2022. Reply The Authority submitted corrective actions to HUD dated February 23, 2023, which included implementing HUD?s recommended corrective actions. - 40