Finding Text
FINDING NUMBER 2023-008
FEDERAL PROGRAM HOUSING VOUCHER CLUSTER:
SECTION 8 HOUSING CHOICE VOUCHERS/ EMERGENCY HOUSING VOUCHERS
(ASSISTANCE LISTING NUMBERS 14.871/ 14.EHV)
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
TYPE OF FINDING MATERIAL WEAKNESS AND INSTANCE OF NONCOMPLIANCE
COMPLIANCE
REQUIREMENT SPECIAL TEST- ROLLING FORWARD EQUITY BALANCES
CONDITION During the examination of the program accounting records, I noted that the equity balances reported in the Voucher Management System (VMS) for the month of June 30, 2023, have differences with the amounts reported in the draft audited financial information for the fiscal year ended June 30, 2023, submitted through the FASS-PH system, as follows:
VMS FASS-PH DIFFERENCE
HCV - Restricted Net Position Funds (RNP) $ 34,760 $ 52,596 $ (17,836)
HCV -Unrestricted Net Position Funds (UNP) $ 66,142 $ 42,043 $ 24,099
Emergency Housing Vouchers - Restricted Net Position Funds (RNP) $ 575 $ 19,471 $ (18,896)
Emergency Housing Vouchers - Unrestricted Net Position Funds (UNP) $ (3,391) $ 6,693 $ (10,084)
CRITERIA Code of Federal Regulations, 24 CFR, Section 982.158 (a) (b) states that 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. Also, the PHA must furnish HUD accounts and other records, reports, documents, and information, as required by HUD.
CAUSE The Program’s internal controls and procedures over the accounting records failed to assure that the equity balances were properly calculated and reported in the VMS.
EFFECT The Program is not reporting the correct balances of restricted net position and unrestricted net position to HUD.
RECOMMENDATION I recommend management to prepare an analysis of the equity balances and adjust or correct any errors reported in the VMS.
QUESTIONED COSTS None
PRIOR YEAR FINDING This finding was presented in prior year Schedule of Findings and Questioned Costs (2022-009).
VIEWS OF RESPONSIBLE
OFFICIALS AND PLANNED
CORRECTIVE ACTION Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure the equity balances were properly calculated and reported in the Voucher Management System (VMS). Also, the Program staff were instructed to analyze previous equity balances reported in the VMS and realize any necessary corrections.