Finding 1172086 (2024-006)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-02-03

AI Summary

  • Core Issue: The Authority claimed a High Performer score for SEMAP but could not provide necessary documentation to support this assessment.
  • Impacted Requirements: The Authority failed to meet HUD's documentation and internal control requirements as outlined in 24 CFR 985.
  • Recommended Follow-Up: Strengthen internal controls by maintaining complete documentation, implementing review procedures, and training staff on SEMAP reporting compliance.

Finding Text

Condition: The Authority’s self-assessed score for SEMAP was that of a High Performer. The Authority was not able to provide support for sampling calculations, testing that was performed for scoring, and PIC reports for the monitoring of certain indicators. As a result we are unable to verify the accuracy and completeness of the reported information. Context: SEMAP is used by HUD to evaluate the performance of housing authorities administering the HCV program. Housing authorities are required to maintain documentation supporting the data used in their SEMAP self-assessments. As part of our audit procedures over the Housing Voucher Cluster, we requested documentation supporting the SEMAP indicators reported by the Authority. Management was unable to provide sufficient documentation to support the self-assessed score. Criteria: Per 24 CFR 985, the Authority is required to assess certain performance indicators to enable HUD to measure the Authority’s performance in key areas. In addition, the Authority is required to establish and maintain records sufficient to support compliance with HUD program requirements, as well as establishing internal controls to ensure compliance with applicable regulations. Cause: The Authority experienced staffing turnover and the staff who performed the SEMAP monitoring during 2024 was no longer with the Authority at the time of the audit. The Authority did not have effective procedures in place to ensure that documentation supporting SEMAP indicators and self-assessed scoring was consistently retained, reviewed, and readily available for monitoring and audit purposes. Effect: The Authority’s SEMAP reporting appears to be more favorable compared to results seen during the audit testing, resulting in a SEMAP score that was higher than warranted. Questioned Costs: Unknown. Auditor Recommendations: The Authority should strengthen internal controls over SEMAP reporting by ensuring that complete and accurate documentation is maintained to support all SEMAP indicators and self-assessed scores. Management should implement procedures to review and retain SEMAP supporting documentation prior to certification, ensure records are retained in accordance with HUD and federal record-retention requirements, and provide training to staff responsible for SEMAP reporting to promote ongoing compliance. Management Response: See Corrective Action Plan.

Corrective Action Plan

Action Taken: Management acknowledges the findings and the material weakness in internal control and material noncompliance in SEMAP reporting. We accept responsibility for the deficiencies in internal control over SEMAP reporting and are committed to implementing corrective actions that address missing self-certification documentalion to ensure compliance. The Authority must take immediate steps to remediate these deficiencies by establishing a robust, auditable documentation process: • Strengthen Internal Controls: Develop procedures to ensure complete and accurate documentation is maintained for all 14 SEMAP indicators, including detailed sampling methodologies. • Pre-Certification Review: Implement a mandatory management review process for all SEMAP documentation before final certification is submitted to HUD. • Ensure Proper Retention: Enforce document retention policies that align with HUD regulations, ensuring records are accessible for audit purposes. • Staff Training: Provide training to staff regarding SEMAP indicator requirements and the necessity of maintaining supporting evidence. • Utilize PIG Reports: Ensure all tenant data is properly reported in PlC, as this is the basis for several indicators. Name of Responsible Person: Catherine Lamberg, CEO, and Jackie Otto, COO, and Daporsha Abernathy, HCVP Director Projected Completion Date: Most of the corrective activities are completed. We anticipate completing the balance of activities by May 1, 2026.

Categories

Subrecipient Monitoring HUD Housing Programs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1172072 2024-002
    Material Weakness Repeat
  • 1172073 2024-003
    Material Weakness Repeat
  • 1172074 2024-004
    Material Weakness Repeat
  • 1172075 2024-005
    Material Weakness Repeat
  • 1172076 2024-006
    Material Weakness Repeat
  • 1172077 2024-002
    Material Weakness Repeat
  • 1172078 2024-003
    Material Weakness Repeat
  • 1172079 2024-004
    Material Weakness Repeat
  • 1172080 2024-005
    Material Weakness Repeat
  • 1172081 2024-006
    Material Weakness Repeat
  • 1172082 2024-002
    Material Weakness Repeat
  • 1172083 2024-003
    Material Weakness Repeat
  • 1172084 2024-004
    Material Weakness Repeat
  • 1172085 2024-005
    Material Weakness Repeat
  • 1172087 2024-002
    Material Weakness Repeat
  • 1172088 2024-003
    Material Weakness Repeat
  • 1172089 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.872 PUBLIC HOUSING CAPITAL FUND $847,209
14.850 PUBLIC HOUSING OPERATING FUND $533,477
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $270,152
14.879 MAINSTREAM VOUCHERS $252,031