Finding Text
Finding 2025-005: Voucher Management System Reporting Housing Choice Voucher (14.871) and Mainstream Voucher (14.879) Material Weakness/Noncompliance Criteria: The Agency is required to transmit monthly information in the Voucher Management System that is supported by the Agency’s underlying leasing and accounting records. Condition: During our review of the Voucher Management System (VMS) for fiscal year 2025, we noted the following information reported within the VMS system did not agree with amounts recorded in the general ledger for both the Housing Choice Voucher program (CFDA 14.871) and the Mainstream Voucher program (CFDA 14.879): • Housing Choice Voucher (14.871) o Net restricted position on VMS was overstated by $21,210. o Unrestricted net position on VMS was understated by $12,016. o Housing assistance payments in VMS were understated by $2,598. • Mainstream Voucher (14.879) o Net restricted position on VMS was understated by $139. o Unrestricted net position on VMS was overstated by $10,242. Cause: The Agency did not have a system in place to accurately reconcile the information used to prepare the information used for the VMS submissions to the underlying accounting records. Effect: Failure to reconcile VMS data to underlying financial records can result in: • Inaccurate reporting to HUD, which impairs HUD’s oversight of program funding and compliance. • Potential misallocation of federal funds and unsupported program balances in your audited financial statements. Recommendation: We recommend that the Housing Agency develop and formalize a written reconciliation procedure that aligns VMS balances with the general ledger at least monthly, documenting all adjustments. Further, the Housing Agency should implement review controls whereby a staff member independent of the VMS data entry process validates the net restricted and unrestricted positions before submission. View of the Responsible Officials of the Auditee: The auditee’s management agrees with the finding.