Finding 1093355 (2024-002)

Federal Agency: Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: FL009, 2024 Award Period: April 1, 2023 to March 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The authorizations in Attachment C of the Standard MTW Agreement and the Appendixes I and II of the MTW Operations Notice include acceptable uses of MTW funds and administrative activities related to both Public Housing (Assistance Listing 14.850) and Section 8 Housing Choice Vouchers (Assistance Listing 14.871), authorizations related to Public Housing only, authorizations related to Section 8 Housing Choice Vouchers only, and authorizations related to family self-sufficiency. Unless otherwise stated in Attachment D of the Standard MTW Agreement, the MTW Demonstration Program applies to all of the PHA’s public housing-assisted units (including PHA-owned properties and units comprising a part of mixed-income, mixed finance communities), tenant-based Section 8 voucher assistance, Section 8 project-based voucher assistance under Section 8(o) and Homeownership units developed using Section 8(y) voucher assistance. Condition: During the testing of the Moving to Work Demonstration Program tenant files, certain unallowable costs were noted. Of the timesheets provided, auditor noted 2 instances were the overtime rate was paid but the employee hadn't reached 75 regular hours worked as per Authority Policy. Questioned costs: $293 Context: Out of 40 files, 2 files contained errors as noted above. Cause: The Authority failed to correctly code the employees hours worked leading to several instances of a employee’s being overpaid. This was due to errors when the managers approved employee overtime. Effect: The Authority does not have adequate procedures in place over payroll processes. Repeat Finding: No Recommendation: We recommend the authority should evaluate their procedures over payroll processes and perform training with the managers who are approving the hours. Views of responsible officials: There is no disagreement with the audit finding.