FAC Explorer

Finding 1214553 (2025-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-05-12
Audit: 401229
Organization: Sioux Falls Housing and Redevelopment Commission (SD)
Auditor: BRADY MARTZ

AI Summary

  • Core Issue: The Authority lacked proper controls for reconciling HAP expenses, leading to inaccurate data in monthly VMS submissions.
  • Impacted Requirements: Accurate data submission is crucial for HUD to determine renewal funding levels, which was compromised.
  • Recommended Follow-Up: The Commission should enhance internal control procedures for HAP expense reconciliations to ensure data accuracy.

Finding Text

Federal Program U.S. Department of Housing and Urban Development AL #14.871 – Significant Deficiency Grant Award No. ND014-Housing Choice Voucher Federal Award Year 2025 Criteria PHAs are required to submit accurate data in monthly VMS submissions as HUD uses this data to determine renewal funding levels. Condition The Authority did not have control procedures in place throughout the year for reconciliations of HAP expenses. This resulted in inaccurate data submitted in monthly VMS submissions. Questioned Costs None Context We reviewed VMS data submissions noting reported balances did not accurately reflect balances recorded in the Commission’s general ledger. Effect HUD did not have accurate data to use in determining renewal funding levels. Cause The Commission was going through a software conversion which delayed various reconciliation processes and staff turnover resulted in control processes not implemented for the entire fiscal year. Repeat Finding See 2024-006. Recommendation We recommend the Commission reviews their internal control procedures over the reconciliation of HAP expenses to ensure accurate reporting. Views of Responsible Officials Management recognizes the deficiency and plans to implement the auditor’s recommendation.

Corrective Action Plan

Contact Person Larissa Deedrich, Executive Director Corrective Action Plan Management has reviewed control processes and assigned staff to perform necessary controls over the reconciliation of HAP expenses. Planned Completion Date for CAP September 30, 2026

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1214548 2025-003
    Material Weakness Repeat
  • 1214549 2025-003
    Material Weakness Repeat
  • 1214550 2025-003
    Material Weakness Repeat
  • 1214551 2025-003
    Material Weakness Repeat
  • 1214552 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $143,768
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $130,221
14.850 PUBLIC HOUSING OPERATING FUND $82,918
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $68,725
14.238 SHELTER PLUS CARE $37,377
14.856 LOWER INCOME HOUSING ASSISTANCE PROGRAM SECTION 8 MODERATE REHABILITATION $19,077
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $9,818
14.872 PUBLIC HOUSING CAPITAL FUND $250