Finding Text
Criteria - Public Housing Authorities administering the Housing Voucher Cluster are required to submit a Voucher for Payment of Annual Contributions and Operating Statement on a monthly basis to HUD electronically via the Voucher Management System (VMS). HUD relies on the audit of key line items to determine reasonableness of the data submitted for the purposes of calculating funding under the program. Condition - Unrestricted net position (UNP), Restricted Net Position (RNP), and cash contained significant deficiencies between the reported amounts and the Authority’s underlying records of $219,413, $18,385 and $255,015, respectively. Cause - The Authority did not have adequate controls in place to ensure accurate reporting. Effect - Inaccurate reporting of key line items such as UNP, RNP, and cash may adversely affect HUD’s funding determinations and program oversight. This increases the risk of under or over-funding and may result in compliance findings or corrective actions. Questioned Costs - None identified. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Recommendation - We recommend that management establish and implement a reconciliation process to ensure the reported figures on the VMS submission accurately reflect the underlying accounting records. Management’s Response - (a) Comments on the Finding and Recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendation. Please see below for additional comments and action taken. (b) Action Taken - Accounting staff will review and verify key line items (including Unrestricted Net Position, Restircted Net Position, and Cash) against the general ledger prior to VMS submission. Supervisory review will be required to confirm accuracy. (c) Planned Implementation Date - The Authority plans to implement procedures during the year ending March 31, 2026 to resolve the reported finding.