Finding 1177006 (2024-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-03-09
Audit: 390862
Organization: Smithfield Housing Authority (RI)
Auditor: CBIZ CPAS PC

AI Summary

  • Core Issue: The Authority failed to provide necessary support for SEMAP self-certifying indicators, leading to incorrect biennial assessments.
  • Impacted Requirements: Noncompliance with SEMAP certification and reporting standards as outlined in 24 CFR § 985.
  • Recommended Follow-Up: Ensure future SEMAP assessments include proper documentation and are conducted biennially as required.

Finding Text

2024-003 – REPORTING AND SPECIAL TESTS Significant Deficiency/Other Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.871 – Housing Voucher Cluster CRITERIA 24 CFR § 985 – The Section 8 Management Assessment Program (SEMAP) is designed to assess whether the Section 8 tenant-based assistance programs operate to help eligible families afford decent rental units at the correct subsidy cost. SEMAP also establishes a system for HUD to measure the Authority’s performance in key Section 8 program areas and to assign performance ratings. The method for selecting the Authority’s quality control sample must leave a clear audit trail that can be used to verify that the Authority’s quality control sample was drawn in an unbiased manner. CONDITION We noted that the SEMAP certification performed by the Authority was missing support for self-certifying indicators. As such, the Authority did not conduct its biennial SEMAP assessment correctly. CAUSE There was a turnover in Authority’s Executive Director during the year and the temporary Executive Director was not aware of SEMAP certification and reporting requirements. EFFECT The Authority is not in compliance with its SEMAP certification and reporting requirements. QUESTIONED COSTS None identified CONTEXT The Authority conducts the SEMAP assessment on a biennial basis. REPEAT FINDING Not a repeat finding. RECOMMENDATION The Authority should ensure that SEMAP assessment is conducted on a biennial basis and includes adequate supporting documentation. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.

Corrective Action Plan

The methodology used for sample selection will be documented and retained to ensure a clear audit trail and demonstrate that the sample was selected in an unbiased manner. Supervisory review of SEMAP certifications and supporting documentation will occur prior to submission to ensure compliance with 24 CFR § 985 requirements. Training has been scheduled for April 7, 2026 which will help ensure that staff are aware of the requirements of SEMAP moving forward for its biennial reporting.

Categories

HUD Housing Programs Reporting Significant Deficiency

Other Findings in this Audit

  • 1177005 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $440,115
14.872 PUBLIC HOUSING CAPITAL FUND $316,809
14.850 PUBLIC HOUSING OPERATING FUND $130,769