Finding 1140243 (2024-004)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-06-04
Audit: 358012
Organization: Wallingford Housing Authority (CT)
Auditor: Cbiz CPAS PC

AI Summary

  • Core Issue: The Authority failed to review and reconcile VMS submissions to supporting documents, leading to missing data for housing assistance payments.
  • Impacted Requirements: Monthly electronic submission of HUD-52681-B data is critical for determining funding levels and monitoring by HUD.
  • Recommended Follow-up: Implement a control process to ensure VMS data is reconciled with supporting documentation before submission.

Finding Text

2024-004 - REPORTING Significant Deficiency / Other Matter U.S. Department of Housing and Urban Development ALN: 14.871 / 14.879 – Housing Voucher Cluster CRITERIA Electronic submission of form HUD-52681-B data is a monthly requirement. The PHA submits this form monthly to HUD electronically via the VMS. Congress has instructed HUD to use VMS data to determine renewal funding levels. HUD also uses VMS data for other funding, monitoring, and SEMAP-related decisions. 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 During the fiscal year ended June 30, 2024, the Authority’s internal controls over the submission of VMS to HUD did not include a review or reconciliation of the information submitted to supporting documentation. As a result, housing assistance payments for Mainstream Port-out vouchers were not reported in VMS. CAUSE The Authority had not established sufficient internal controls related to this submission Requirement. EFFECT HUD uses the information submitted to determine renewal funding levels, and for other funding and monitoring decisions. Inaccurate information submitted could affect decisions made by HUD. QUESTIONED COSTS None Identified. CONTEXT Electronic submission of form HUD-52681-B data is a monthly requirement. REPEAT FINDING Not a repeat finding. RECOMMENDATION The Authority should implement a control of the information being entered into VMS is reconciled to supporting documentation. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.

Categories

HUD Housing Programs Subrecipient Monitoring Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 563799 2024-002
    Material Weakness
  • 563800 2024-003
    Significant Deficiency
  • 563801 2024-004
    Significant Deficiency
  • 563802 2024-002
    Material Weakness
  • 563803 2024-003
    Significant Deficiency
  • 563804 2024-004
    Significant Deficiency
  • 1140241 2024-002
    Material Weakness
  • 1140242 2024-003
    Significant Deficiency
  • 1140244 2024-002
    Material Weakness
  • 1140245 2024-003
    Significant Deficiency
  • 1140246 2024-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $2.61M
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.66M
14.871 Section 8 Housing Choice Vouchers $1.25M
14.195 Project-Based Rental Assistance (pbra) $247,333
14.879 Mainstream Vouchers $214,710
14.326 Project Rental Assistance Demonstration (pra Demo) Program of Section 811 Supportive Housing for Persons with Disabilities $137,056