Finding Text
Criteria - In accordance with 24 CFR 982.158 (a), the Authority 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 Authority must comply with the financial reporting requirements in 24 CFR Part 5, subpart H.
Condition - The information submitted to HUD in the Voucher Management System (VMS) for the Housing Voucher Cluster did not align with the underlying supporting documentation. Specifically, the unit months leased (UML) and housing assistance payments (HAP).
Cause - The discrepancies appear to be a result of software conversion.
Effect - This discrepancy may lead to inaccurate reporting to HUD, potentially affecting funding allocations and compliance with federal program requirements. It could also impact the credibility and reliability of the Authority's financial and programmatic reporting.
Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample.
Questioned Costs - None identified.
Repeat Finding - This is not a repeat finding.
Recommendation - To mitigate these discrepancies, it is recommended that the Authority implement enhanced internal controls over the VMS reporting process. This includes:
1) Conducting regular reconciliations between VMS submissions and underlying accounting records.
2) Providing additional training to staff responsible for the data entry and review process.
3) Introducing a secondary review process to detect and correct discrepancies before submission.
Management’s Response - (a) Comments on the finding and recommendation - The Authority agrees with the findings. The Authority also agrees with the recommendations, please see below for action taken.
(b) Action taken - The Authority will provide on-going training for finance and accounting personnel to expand their knowledge on HUD reporting requirements related to VMS. Additionally, the Authority will conduct a thorough review to identify the root cause of the discrepancies between the VMS data and the supporting documentation.
(c) Planned implementation date of corrective action - Completed by March 31, 2025.