Finding 1054720 (2023-004)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-07-11

AI Summary

  • Core Issue: The Authority lacks proper segregation of duties in preparing and submitting the Voucher for Payment of Annual Contributions and Operating Statement.
  • Impacted Requirements: Monthly reporting to HUD via the Voucher Management System (VMS) is not adequately reviewed, risking compliance.
  • Recommended Follow-Up: Implement internal controls to ensure compliance with reporting requirements and address the repeat finding from 2022.

Finding Text

Federal Program – Section 8 Housing Choice Voucher Program AL #14.871 – Reporting – Voucher for Payment of Annual Contributions and Operating Statement Federal Program Section 8 Housing Choice Vouchers AL #14.871 – Significant Deficiency Criteria The Authority is required to submit the Voucher for Payment of Annual Contributions and Operating Statement report monthly to HUD via the Voucher Management System (VMS). Condition During our testing of reporting, we noted that there were no processes in place that segregated duties of the individual preparing or submitting the Voucher for Payment of Annual Contribution and Operating Statement using VMS. Questioned Costs None. Context During testing, we reviewed all required reports. Effect Information reported was not appropriately reviewed by an additional individual. Cause The Authority experienced turnover in the Section 8 program. As a result, controls were not in place to ensure proper reporting. Repeat Finding This is a repeat of finding 2022-004. Recommendation We recommend that the Authority implement proper internal controls to ensure the Authority’s compliance with reporting requirements. Views of Responsible Officials We are aware of the issue and have taken subsequent steps to ensure compliance with this requirement.

Categories

HUD Housing Programs Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 478276 2023-002
    Material Weakness Repeat
  • 478277 2023-003
    Significant Deficiency Repeat
  • 478278 2023-004
    Significant Deficiency Repeat
  • 1054718 2023-002
    Material Weakness Repeat
  • 1054719 2023-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $997,944
14.872 Public Housing Capital Fund $237,869
14.850 Public and Indian Housing $183,062