Finding 1173045 (2025-001)

U.S Department of Housing and Urban Development No. 14.241 – Housing Opportunities for Person with AIDS Grant Period Year Ended June 30, 2025 Criteria: While the housing opportunity program implemented further segregation of duties over the program participants' eligibility, rent and utility assistance calculation and program reporting during the year, the internal controls were lacking in verifying the participant’s utility assistance calculations. Condition and Context: We noted an incorrect utility assistance calculation, which internal control processes did not identify. Effect: While testing a sample of forty program transactions, one client utility assistance expense was calculated incorrectly. The payment was reviewed and approved which resulted in an overpayment of $340. Cause: The established internal controls failed to detect an incorrect utility payment. Recommendation: Internal control processes should include recalculating the amount being paid for each utility assistance and how many weeks the payment covers. During the year, additional staff were hired to improve controls and mitigate the risk. We noted improvement as the year progressed. Management Response: Management agrees with the finding. Procedures are being implemented to ensure appropriate internal controls are established and followed, see attached corrective action plan.