Finding 1169688 (2024-007)

Material Weakness Repeat Finding
Requirement
BN
Questioned Costs
-
Year
2024
Accepted
2026-01-20

AI Summary

  • Core Issue: A human error led to an overpayment of HAP for one tenant, totaling $135.
  • Impacted Requirements: Compliance with 24 CFR Section 982.158, which mandates that HAP payments align with the HAP contract and register.
  • Recommended Follow-Up: Management should enhance internal monitoring processes and consider additional training for housing specialists to prevent future errors.

Finding Text

HAP Payments Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Allowable Costs, Special Tests – Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matter Criteria or specific requirement: Per 24 CFR Section 982.158, the HAP payment must agree to the HAP contract and HAP register. Condition: During our testing, we noted that the Organization overpaid HAP for one file for part of 2024 due to human error. Questioned costs: $135 Context: From a sample of 60 program participant files selected for testing, 1 tenant had the above issue where HAP was overpaid due to human error. Cause: The Housing Specialist made an error in entering the data into the system. Effect: One program participant received an overpayment of HAP. Repeat finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate HAP is paid and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.

Corrective Action Plan

HAP Payments Allowable Costs, Special Tests – Housing Choice Vouchers – CFDA No. 14.871 Recommendation: Management should review their current processes and create an internal monitoring system to ensure appropriate HAP is paid and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management is reviewing work completed by the Housing Specialists more frequently, by performing more Quality Control evaluations, reviewing software-flagged errors, and establishing more check-ins with staff who are producing frequent errors. If frequent errors persist after consistent coaching, Corrective Action Plans will be put in place for those staff members. Termination of employees unable to produce accurate work will be enforced if coaching and Corrective Action Plans prove unsuccessful. Names of the contact persons responsible for corrective action: April Clark and Nicole Thompson Planned completion date for corrective action plan: Currently Implemented & Ongoing

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1169669 2024-004
    Material Weakness Repeat
  • 1169670 2024-004
    Material Weakness Repeat
  • 1169671 2024-004
    Material Weakness Repeat
  • 1169672 2024-004
    Material Weakness Repeat
  • 1169673 2024-004
    Material Weakness Repeat
  • 1169674 2024-005
    Material Weakness Repeat
  • 1169675 2024-005
    Material Weakness Repeat
  • 1169676 2024-005
    Material Weakness Repeat
  • 1169677 2024-005
    Material Weakness Repeat
  • 1169678 2024-005
    Material Weakness Repeat
  • 1169679 2024-006
    Material Weakness Repeat
  • 1169680 2024-006
    Material Weakness Repeat
  • 1169681 2024-006
    Material Weakness Repeat
  • 1169682 2024-006
    Material Weakness Repeat
  • 1169683 2024-006
    Material Weakness Repeat
  • 1169684 2024-007
    Material Weakness Repeat
  • 1169685 2024-007
    Material Weakness Repeat
  • 1169686 2024-007
    Material Weakness Repeat
  • 1169687 2024-007
    Material Weakness Repeat
  • 1169689 2024-008
    Material Weakness Repeat
  • 1169690 2024-008
    Material Weakness Repeat
  • 1169691 2024-008
    Material Weakness Repeat
  • 1169692 2024-008
    Material Weakness Repeat
  • 1169693 2024-008
    Material Weakness Repeat
  • 1169694 2024-009
    Material Weakness Repeat
  • 1169695 2024-009
    Material Weakness Repeat
  • 1169696 2024-009
    Material Weakness Repeat
  • 1169697 2024-009
    Material Weakness Repeat
  • 1169698 2024-009
    Material Weakness Repeat
  • 1169699 2024-010
    Material Weakness Repeat
  • 1169700 2024-010
    Material Weakness Repeat
  • 1169701 2024-010
    Material Weakness Repeat
  • 1169702 2024-010
    Material Weakness Repeat
  • 1169703 2024-010
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $680,756
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $121,363