Finding 1154921 (2024-003)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-09-24

AI Summary

  • Core Issue: Insufficient oversight of housing manager duties leads to potential errors in eligibility and reporting.
  • Impacted Requirements: The Housing Authority must ensure compliance with federal regulations regarding eligibility and benefit distribution.
  • Recommended Follow-Up: Implement stronger controls and segregation of duties to improve oversight and compliance.

Finding Text

Lack of Proper Review – Allowable Activities/Costs, Eligibility, Reporting, and Special Provisions Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Choice Voucher Program Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: N/A Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: December 31, 2024 Type of Finding: Material Weakness in Internal Control Over Compliance Condition: There is minimal oversight of the housing manager duties which include determining eligibility, reporting requirements, selection from the waiting list, reasonable rent calculations, inspections, and housing authority payment. Criteria or Specific Requirement: The HRA is required to have controls in place to ensure eligible persons are receiving benefits and that the program is meeting all of the federal requirements. Context: During testing, it was noted that there is minimal oversight of the housing manager duties which include determining eligibility, reporting requirements, selection from the waiting list, reasonable rent calculations, inspections, and housing authority payment. Effect: There is potential for error in reports, selections or ineligible individuals receiving benefits. Cause: Lack of personnel. Repeat Finding: Yes, see finding 2023-002. Recommendation: We recommend the HRA implement controls over all areas of the federal program so that segregation of duties are in place and working. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

Lack of Proper Review – Eligibility, Reporting, and Special Provisions Federal agency: U.S. Department of Housing and Urban Development Federal program Title: Housing Choice Voucher Program Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: N/A Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: December 31, 2024 Type of Finding: Material Weakness in Internal Control Over Compliance Recommendation: We recommend the HRA implement controls over all areas of the federal program so that controls are in place and working. Views of Responsible Officials: There is no disagreement with the audit finding. Action Taken in Response to Finding: The HRA will assess the controls over the federal program and make changes as deemed necessary. Name of the Contact Person Responsible for Corrective Action Plan: Emily Burns, Finance Manager Planned Completion Date for Corrective Action Plan: December 31, 2025.

Categories

Internal Control / Segregation of Duties Eligibility Material Weakness Reporting

Other Findings in this Audit

  • 1154920 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $839,088
14.879 Mainstream Vouchers $191,521