Finding 1105859 (2024-004)

Finding 2024-004: Voucher Management System Housing Choice Voucher – 14.871 Material Weakness/Noncompliance Reporting Criteria: The PHA submits information to HUD electronically monthly via the Voucher Management System (VMS). HUD relies on the audit of the key line items below to determine the reasonableness of the data submitted for the purposes of calculating funding under the program. Condition: The Agency’s process for submitting VMS data is to generate the information from its housing software and then providing that information to its fee accountant to submit. The Agency then reviews the information for correctness. During the month April, 2024, the Agency reported 14 tenant protection vouchers in the “tenant protection” line item and again in the “All Others” field. This error was not identified and corrected during the normal course of business. Cause: The Agency’s controls did not work as intended. Effect or Potential Effect: The Agency overreported the number of HAP transaction. The number of HAP transactions is the basis for HUD determining the administrative fee paid to the Authority. Recommendation: The Agency correct the VMS report and review its controls for ensuring accurate information is transmitted in the VMS system. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.