FAC Explorer

Finding 22430 (2022-002)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-09-27
Audit: 20798
Organization: Las Animas / Bent County Housing Authority (CO)
Auditor: Green & Associates LLC

AI Summary

  • Core Issue: The Authority has a control deficiency due to improper documentation of zero income and incorrect tenant rent calculations in 2 out of 13 samples.
  • Impacted Requirements: This deficiency violates 24 CFR sections 982.516, which mandates proper documentation of family income and accurate rent calculations.
  • Recommended Follow-Up: The Authority should train employees on income verification policies to ensure compliance and prevent future issues.

Finding Text

Condition: The control deficiency exists due to two instances out of thirteen samples in which the Authority failed to properly document an instance of zero income, or did not properly calculate the tenant portion of the rent. Cause: The cause of the deficiency was related to the improper input of information into the system and the failure to obtain proper documentation of income related items in accordance with the Authority?s policies. Effect: The Authority is not in compliance with 24 CFR sections 982.516 which requires it to obtain and document in the file reported family annual income and to determine the tenant?s portion of the rent. Recommendation: We recommend that the Authority communicate the income verification policy with all employees and to ensure the employees have training sufficient to comply with these policies.

Corrective Action Plan

Views of responsible officials and corrective action plans: With the new staff member hired in 2023 and controls inherent in the newly implemented software, review and recalculation can be conducted more readily by Management. The new staff member has been provided much more training, especially after the Pandemic restrictions have been relaxed, and this staff member will be pursuing Certification in Voucher Management Specialist.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 22426 2022-003
    Material Weakness
  • 22427 2022-004
    Material Weakness
  • 22428 2022-005
    Material Weakness
  • 22429 2022-001
    Material Weakness
  • 598868 2022-003
    Material Weakness
  • 598869 2022-004
    Material Weakness
  • 598870 2022-005
    Material Weakness
  • 598871 2022-001
    Material Weakness
  • 598872 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $727,318
10.415 Rural Rental Housing Loans $116,988
10.427 Rural Rental Assistance Payments $82,118