Finding 1214412 (2025-003)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2025
Accepted
2026-05-11

AI Summary

  • Core Issue: Payroll allocations for federal programs are based on budgeted expectations instead of actual hours worked, leading to potential errors in reporting.
  • Impacted Requirements: Uniform Guidance mandates that payroll documentation must reflect actual expenditures, not just budgets.
  • Recommended Follow-Up: Implement a control process to regularly compare actual time spent on federal programs with budgeted allocations and make necessary adjustments.

Finding Text

2025-003 Section 8 Housing Choice Voucher Cluster Federal Financial Assistance Listing 14.879 Mainstream Voucher Program Federal Financial Assistance Listing 14.871 Section 8 Housing Choice Voucher Program Allowable Costs/Activities Allowed and Unallowed Significant Deficiency in Internal Control over Compliance Criteria: Uniform Guidance requires that documentation be maintained to support allocations of payroll across federal programs and allocations of expenses be supported by actual expenditures, not budgeted expenditures. Condition: The Commission has a process in place for employees to track hours worked to federal and non federal programs but payroll allocations are made based on budgets expectations, not actual, and review is not occurring to determine if allocations need to be updated throughout the year. Cause: The Commission experienced significant turnover in staff in 2024 and 2025 so that review process is not in place throughout the year. Effect: Errors in reporting could occur that would not be detected on a timely basis by the Commission. Questioned Costs: None Repeat Finding from Prior Year(s): No. Recommendation: With the turnover in staffing, we realize the new staff were not aware of the controls system that needed to be in place. We recommend a control process be in place to review actual time spent on federal programs be compared to budgeted allocations and adjustments be made to reflect actual time spent on those programs. Views of Responsible Officials: Management agrees with finding.

Corrective Action Plan

Finding 2025-003 Federal Agency Name – Department of Housing and Urban Development Assistance Listing Number – 14.871 & 14.879 Program Name – Housing Voucher Cluster Finding Summary: The Commission has a process in place for employees to track hours worked to federal and non-federal programs but payroll allocations are made based on budgets expectations, not actual, and review is not occurring to determine if allocations need to be updated throughout the Responsible Individuals: Brett Bill, Executive Director Corrective Action Plan: Processes will be updated to ensure that payroll allocations are being compared to allocations to ensure they are correctly allocated. Anticipated Completion Date: 5/1/2026

Categories

Allowable Costs / Cost Principles HUD Housing Programs Reporting Significant Deficiency

Other Findings in this Audit

  • 1214411 2025-003
    Material Weakness Repeat
  • 1214413 2025-004
    Material Weakness Repeat
  • 1214414 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $3.09M
14.872 PUBLIC HOUSING CAPITAL FUND $310,868
14.879 MAINSTREAM VOUCHERS $207,103
14.850 PUBLIC HOUSING OPERATING FUND $159,048
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $67,662