Finding Text
Finding No: 2024-001 Type: Noncompliance with provisions of contracts or grant –Housing Choice Vouchers, Assistance Listing No. 14.871; Condition: We identified the following non-compliances: 9 out of 24 selected expense/payroll items did not meet the requirements for activities allowed nor allowable costs. 2 were nonpayroll expenses that had no supporting documentation for allocation. 7 were payroll expenses that had no supporting documentation for compensation agreements, 3 of the 7 payroll expenses did not have timesheets that matched the recorded allocated amounts. Criteria: The Code of Federal Regulations and HUD guidelines give the requirements for activities allowed "PHAs may use HCVP and MV funds only for HAPs to participating owners, and for associated administrative fees and [to recover indirect costs]" and for allowable costs "The amount of salary, including bonuses of PHA chief executive officers, other officers and employees paid with Section 8 HCV administrative fees may not exceed the annual rate of basic pay payable for a federal position" Amount: $23,625 of known questioned costs, $103,339 of total likely and known questioned costs. Cause: There was staffing turnover and management changes throughout the year. Effect or Potential Effect: 1. Expense/Payroll costs allocated to the major program could be overstated 2. Misappropriation of grant dollars for pay rates not appropriately approved and authorized. Repeat Audit Finding: No