Finding 1075548 (2023-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-09-27
Audit: 321894
Auditor: Mike Estes PC

AI Summary

  • Core Issue: There is a lack of adequate quality control in tenant eligibility procedures, leading to potential errors in rent calculations and Housing Assistance Payments.
  • Impacted Requirements: Quality control checks should be performed and documented regularly, ideally monthly or at least quarterly, to identify and correct errors promptly.
  • Recommended Follow-Up: Implement SEMAP-like checks on a quarterly basis to ensure timely detection of systemic errors and improve overall compliance.

Finding Text

Section Eight Housing Choice Voucher Program-CDFA# 14.871, Low Rent Program-CDFA # 14.850, Finding 2023-002-Lack of Adequate Quality Control Regarding Tenant Procedures-Eligibility Criteria and Condition The quality of supervision over tenant file functions, such as calculating tenant rent and Housing Assistance Payments should be timely and sufficient to find errors in calculations or mis-application or mis-understanding of procedures. Context For the Housing Choice Voucher Program, quality control should be timely performed and documented throughout the year. We reviewed twenty-five HCV files. The information was improved over the prior year. In addition, the SEMAP was prepared by an independent consultant. We reviewed the methodology used by the consultant, and reviewed the detail she used on a test basis. The procedures used to compile SEMAP appeared to be proper and sufficient. However, adequate design and operation of internal controls require a periodic representative review of the type of information tested by SEMAP. Documented testes should preferably be done on a monthly basis, and no later than a quarterly basis. The purpose of reviews done monthly or at least quarterly is to detect systemic errors on a timely basis. When SEMAP is done all at one time after year end, the possibility of noting and detecting errors on a timely basis is lost. Effect Errors are not detected and corrected, if necessary, on a timely basis. Questioned Costs None Recommendation SEMAP-like documented checks should be done at least on a quarterly basis. View of Responsible Official I am Jedidiah Jackson. I was hired as E.D., effective July 1, 2024. We are in the process of addressing the problems noted in the audit, as well as correcting other issues noted by HUD.

Categories

HUD Housing Programs Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

  • 499105 2023-001
    Material Weakness Repeat
  • 499106 2023-002
    Material Weakness Repeat
  • 499107 2023-001
    Material Weakness Repeat
  • 499108 2023-001
    Material Weakness Repeat
  • 499109 2023-002
    Material Weakness Repeat
  • 1075547 2023-001
    Material Weakness Repeat
  • 1075549 2023-001
    Material Weakness Repeat
  • 1075550 2023-001
    Material Weakness Repeat
  • 1075551 2023-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $2.40M
14.850 Public and Indian Housing $632,396
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $322,558
14.872 Public Housing Capital Fund $54,333