Finding 1214451 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-05-12

AI Summary

  • Core Issue: Some participants in the PBRA Program reported incorrect utility charges, indicating a lack of proper internal controls.
  • Impacted Requirements: Organizations must ensure accurate tenant utility allowances to comply with program standards.
  • Recommended Follow-Up: Implement a review process where a second qualified staff member checks utility allowance data before submission, with both staff members signing off on the report.

Finding Text

Criteria: Organizations operating the Project Based Rental Assistance (PBRA) Program are required to maintain sufficient internal controls to ensure compliance with tenant utility allowances requirement. Condition: 3 of the 18 participants selected for testing had incorrect utility charges reported on the utility allowance determination worksheet. Cause: Sufficient internal control procedures to ensure that tenant utility allowances are properly established did not exist. Effect: Tenant utility allowance potentially not properly established. Auditor's Recommendation: We recommend that an internal control procedure be implemented to ensure accuracy of the data input into the utility allowance determination worksheet. View of Responsible Officials and Planned Corrective Action: All initial data entries will be completed by the designated staff member. A second qualified staff member will systematically review the utility allowance data for accuracy prior to submission. Both staff members will sign off on the utility allowance report to certify its accuracy.

Corrective Action Plan

All initial data entries will be completed by the designated staff member. A second qualified staff member will systematically review the utility allowance data for accuracy prior to submission. Both staff members will sign off on the utility allowance report to certify its accuracy.

Categories

Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $6.91M
14.314 ASSISTED LIVING CONVERSION FOR ELIGIBLE MULTIFAMILY HOUSING PROJECTS $6.05M
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $5.60M