Finding 1157542 (2024-001)

Condition: The Organization’s internal control procedures did not include reviewing the HOME Program Housing Beneficiary Reports for accuracy prior to submission to the applicable oversite agency. Criteria: The Organization is required to submit HOME Program Housing Beneficiary Reports in connection with the HOME funds it has received based on tenant income certifications. Cause: The Organization utilizes a third party vendor to prepare the reports but did not have a review process which ensured the information in the report was correct for the year ended December 31, 2024. Effect: We noted one error in which the amount of monthly gross income reported on a January 2024 beneficiary report filed with Clark County was not correct. From a population of 14 reports which contain a total population of 138 required designated HOME units, we selected 2 units per report for a total selection of 28 units. The error did not result in the unit not meeting the affordability requirements or any other federally reported requirement. Questioned Costs: None Repeat Finding: The finding was a repeat of a prior year finding. Auditor’s Recommendation: We recommend that a responsible employee review and approve all HOME Program Housing Beneficiary Reports for accuracy prior to their submission to the applicable oversite agency. The review should contain procedures to match the income amounts per the HOME Program Housing Beneficiary Reports with the specific tenant income certification forms. We recommend that the reviewer document the date of the income certification form for each unit as well as the initials of the reviewer. Views Of Responsible Officials And Planned Corrective Actions: Management agrees with the auditor’s recommendation. The director of Low-Income Housing Tax Credit and Compliance will enhance the documentation of the review process and a Board Member will review the documentation.