Finding 1057381 (2018-010)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2018
Accepted
2024-08-12
Audit: 317044
Organization: City of Compton (CA)

AI Summary

  • Core Issue: The Housing Authority failed to maintain accurate records for the HAP equity account, violating HUD requirements.
  • Impacted Requirements: Non-compliance with Title 24 regulations on record-keeping and financial reporting.
  • Recommended Follow-Up: Strengthen internal controls to ensure accurate tracking of HAP equity accounts and address previous audit findings.

Finding Text

Criteria: Title 24- Housing and Urban Development, Part 982- Section 8 Tenant-Based Assistance: Housing Choice Voucher Program, Subpart D - Annual Contributions Contract and PHA Administration of Program, Section 982.158- Program Accounts and Records states: "(a) The PHA must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements, in a manner that permits a speedy and effective audit. The records must be in the form required by HUD, including requirements governing computerized or electronic forms of record-keeping. The PHA must comply with the financial reporting requirements in 24 CFR part 5, subpart H." Condition: The Housing Authority is required to properly account for program activity. We were unable to obtain the housing assistance payments (HAP) equity account roll-forward for the year ended June 30, 2018. Cause: Lack of internal control over the monitoring HAP equity account. Effect or Potential Effect: The Housing Authority is not in compliance with grant requirements. Questioned Cost: Unknown. The questioned costs cannot be calculated, because the total additional funding received by the Housing Authority is unknown. Context: We were unable to obtain the HAP equity account balance at June 30, 2018. Repeat of a Prior-Year Finding: 2017-009, 2016-006, 2015-008, 2014-003, 2013-013

Categories

HUD Housing Programs Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 480930 2018-001
    Material Weakness Repeat
  • 480931 2018-002
    Material Weakness Repeat
  • 480932 2018-003
    Material Weakness Repeat
  • 480933 2018-004
    Material Weakness
  • 480934 2018-005
    Material Weakness
  • 480935 2018-006
    Material Weakness Repeat
  • 480936 2018-007
    Material Weakness Repeat
  • 480937 2018-008
    Material Weakness Repeat
  • 480938 2018-009
    Significant Deficiency Repeat
  • 480939 2018-010
    Material Weakness Repeat
  • 1057372 2018-001
    Material Weakness Repeat
  • 1057373 2018-002
    Material Weakness Repeat
  • 1057374 2018-003
    Material Weakness Repeat
  • 1057375 2018-004
    Material Weakness
  • 1057376 2018-005
    Material Weakness
  • 1057377 2018-006
    Material Weakness Repeat
  • 1057378 2018-007
    Material Weakness Repeat
  • 1057379 2018-008
    Material Weakness Repeat
  • 1057380 2018-009
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $8.17M
14.218 Community Development Block Grants/entitlement Grants $614,545
14.239 Home Investment Partnership Program $282,232
14.218 Community Development Block Grants/state's Program $12,142
14.231 Emergency Shelter Grants Program $10,091
16.738 Edward Byrne Memorial Justice Assistance Grant $6,227