Audit 53864

Finding 2022-003: Allowable Costs Housing Choice Voucher Material Weakness/Noncompliance Questioned Costs: $26,887.48 Criteria: HUD Notice PIH-2020-08 provided the guidance for the allowable uses of the HUD CARES Act funding for the Housing Choice Voucher program. HUD Notice PIH-2020-24 extended the period of availability to December 31, 2021 which meant expenses for after December 31, 2021 were not allowable items to be charged to this funding. Condition: The Authority utilized its HCV HUD CARES Act funding to pay for its annual software and support that covered the period of July 1, 2021 to June 30, 2022. As a result, one half of this expense was for the period after December 31, 2021 and is not an allowable expense for the HUD CARES Act grant. Cause: The Authority did not consider the impacts of the software contract extending past the December 31, 2021 deadline. Effect or Potential Effect: $26,887.48 of HUD CARES Act expenses are unallowable as they were for expenses past December 31, 2021. An adjustment was recorded during the audit to reflect the $26,8887.48 as a payable back to HUD. Recommendation: The Authority should review this situation with HUD and determine its options. The HCV program had numerous other operating expenses it could have allocated to the grant that would have been allowable. The Authority should request from HUD if it could allocate other expenses from prior to December 31, 2021 to the CARES Act program or determine if the funds must be repaid to HUD. View of the Responsible Officials of the Auditee: The auditee?s management agrees with the finding.

Finding 2022-003: Allowable Costs Housing Choice Voucher Material Weakness/Noncompliance Questioned Costs: $26,887.48 Criteria: HUD Notice PIH-2020-08 provided the guidance for the allowable uses of the HUD CARES Act funding for the Housing Choice Voucher program. HUD Notice PIH-2020-24 extended the period of availability to December 31, 2021 which meant expenses for after December 31, 2021 were not allowable items to be charged to this funding. Condition: The Authority utilized its HCV HUD CARES Act funding to pay for its annual software and support that covered the period of July 1, 2021 to June 30, 2022. As a result, one half of this expense was for the period after December 31, 2021 and is not an allowable expense for the HUD CARES Act grant. Cause: The Authority did not consider the impacts of the software contract extending past the December 31, 2021 deadline. Effect or Potential Effect: $26,887.48 of HUD CARES Act expenses are unallowable as they were for expenses past December 31, 2021. An adjustment was recorded during the audit to reflect the $26,8887.48 as a payable back to HUD. Recommendation: The Authority should review this situation with HUD and determine its options. The HCV program had numerous other operating expenses it could have allocated to the grant that would have been allowable. The Authority should request from HUD if it could allocate other expenses from prior to December 31, 2021 to the CARES Act program or determine if the funds must be repaid to HUD. View of the Responsible Officials of the Auditee: The auditee?s management agrees with the finding.