Audit 54671

Finding 2022-005: Internal Control Structure Public Housing - 14.850, Housing Choice Voucher ? 14.871 Material Weakness - Allowable Costs Repeat Finding: 2021-005. Criteria: The Authority is responsible for establishing an effective internal control process to ensure the Authority complies with the requirements governing Public Housing program. Condition: This past year, the Authority only consistently had two full-time administrative employees and a third position had been inconsistent. As a result, it made it difficult for the Authority to have controls beyond the Authority staff knowledge and compensating controls were not development to overcome the lack of segregation of duties. Specifically we noted a lack of segregation of duties over allowable costs as the Executive Director had to handle many of the duties by herself without compensating controls. Cause: The Authority had limited resources and staffing issues impacted the Authority during the year. Effect or Potential Effect: The control deficiencies are deficiencies that result in more than a reasonable possibility that material noncompliance with program requirements could occur and not be prevented or detected. Recommendation: The Authority should review how it could feasibly design and implement controls over these areas. View of the Responsible Officials of the Auditee: The auditee?s management agrees with the finding.

Finding 2022-005: Internal Control Structure Public Housing - 14.850, Housing Choice Voucher ? 14.871 Material Weakness - Allowable Costs Repeat Finding: 2021-005. Criteria: The Authority is responsible for establishing an effective internal control process to ensure the Authority complies with the requirements governing Public Housing program. Condition: This past year, the Authority only consistently had two full-time administrative employees and a third position had been inconsistent. As a result, it made it difficult for the Authority to have controls beyond the Authority staff knowledge and compensating controls were not development to overcome the lack of segregation of duties. Specifically we noted a lack of segregation of duties over allowable costs as the Executive Director had to handle many of the duties by herself without compensating controls. Cause: The Authority had limited resources and staffing issues impacted the Authority during the year. Effect or Potential Effect: The control deficiencies are deficiencies that result in more than a reasonable possibility that material noncompliance with program requirements could occur and not be prevented or detected. Recommendation: The Authority should review how it could feasibly design and implement controls over these areas. View of the Responsible Officials of the Auditee: The auditee?s management agrees with the finding.