Finding 1162711 (2024-003)

Section 8 Housing Choice Voucher Program-CDFA #14.871 2024-003-Lack of quality control and SEMAP-Eligibility and Special Tests Criteria and Specific Requirement The waiting list, tenant file functions, and quality control should be documented. Condition Found The tenant files and waiting list were much improved over the prior year, for which numerous exceptions were noted. However, we did note the following: (a)-SEMAP was apparently not prepared by prior management. SEMAP is required by HUD regulations. This is a documentation that quality control was performed, broken down into subsets. Even if SEMAP was not required by HUD, at least similar documented quality control should be done and available for third party review. Statement of Auditing Standard #115, which auditors must follow, states “absent or inadequate segregation of duties within a significant account or process” is defined by the Standard as at least a significant deficiency or material weakness. Either require an audit finding. (b)-It appears that quality control inspections were not done. (c)-It appears that the last utility allowance review was done in August 2023. Federal regulations require that utility allowances be done annually. At least when any one category changes more than 10% since the last review, the allowances must be revised. Cause Apparent oversight. Effect Federal regulations were not complied with. Recommendation We have discussed the particulars with management. We have also furnished them with blank forms to complete the filing. View of responsible official We will comply with the auditor’s recommendation.