Finding Text
2024-005 – Cash Disbursements Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Housing Choice Voucher Program FALN: 14.871/14.879 Federal Award Identification Number and Year: MD023, 2024 Award Period: 1/1/2024-12/31/2024 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: PHAs may use HCVP and MV funds only for HAPs to participating owners, and for associated administrative fees (24 CFR sections 982.151 and 982.152). In addition, see expanded authority in the use of administrative fees under PIH Notice 2022-18, Use of Housing Choice Voucher (HCV) and Mainstream Voucher Administrative Fees for Other Expenses to Assist Families to Lease Units. Condition: The Commission did not follow internal controls designed to ensure that expenses charged to HCVP were allowable. Questioned costs: $35.43 Context: During our testing of 40 cash disbursements, we noted the following: • 1 out of 40 samples were unallowable (specifically for an entertainment activity, and the questioned-cost value represents whole of sporting-event-related activity observed within disbursement population). Cause: The Commission did not monitor their internal controls closely which resulted in the allocation of unallowable expenses to the program. Effect: The Commission is not in compliance with HUD requirements. Repeat finding: No. Recommendation: We recommend that the Commission review its policies and procedures in place to ensure that only allowable activities are associated with the usage of program funding allocations. Views of responsible officials: There is no disagreement with the audit finding.