Finding Text
VMS Reporting Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: FL007, 2024 Award Period: July 1, 2023 to June 30, 2024 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The Authorities administering the Housing Choice Voucher (HCV) Program are required to accurately report leasing and expenditure data in HUD’s Voucher Management System (VMS). Under 24 CFR section 982.158(a), the Authority must maintain complete and accurate accounts and records for all program transactions, including HAP expenses and unit months leased. In accordance with HUD’s Uniform Financial Reporting Standards at 24 CFR part 5, subpart H, and HUD’s VMS reporting requirements issued through PIH Notices, the Authority must submit complete, accurate, and timely VMS data each month and retain documentation supporting all reported figures. Additionally, the Authority must ensure that all VMS submissions reflect actual HAP expenses and leasing activity for the reporting month, and that any revisions or corrections are submitted promptly in accordance with HUD guidance (24 CFR section 982.152(d) and applicable PIH Notices governing VMS reporting). Condition: During the testing of the Housing Choice Voucher Program VMS report, support was unable to be provided to back up the VMS report submitted to HUD Questioned costs: Unable to determine. Context: The VMS report was not backed up with supporting documentation. Cause: The Authority does not have adequate internal controls designed to ensure that requirements are met. Effect: The Authority does not have proper controls over the reporting process. Repeat Finding: No Recommendation: We recommend that the Authority designate an individual to review VMS monthly including the prior periods for adjustments. Views of responsible officials: There is no disagreement with the audit finding.