Finding 31195 (2022-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-28

AI Summary

  • Core Issue: The Authority failed to meet HUD-50058 reporting requirements by not uploading necessary recertifications to the PIC system.
  • Impacted Requirements: Compliance with 24 CFR Part 908 is essential for accurate reporting on admissions and changes in family status.
  • Recommended Follow-Up: Implement controls to ensure all HUD-50058 recertifications are properly uploaded to the PIC system.

Finding Text

2022 ? 002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Reporting ? PIH Information Center (PIC) Reporting Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority is required to submit the HUD-50058 electronically to HUD via the PIH Information Center (PIC) each time the Authority completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family (24 CFR Part 908). Condition: The Authority did not satisfy PIC reporting requirements in accordance with 24 CFR Part 908. Questioned costs: Unable to determine. Context: Exceptions noted in 4 out of 40 recertifications. In all instances, the HUD-50058 was unable to be located within the PIC system. The sample was statistically valid. Cause: The Authority did not identify recertifications that failed to upload to the PIC system. Effect: The Authority is not in compliance with PIC reporting requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure HUD-50058 recertifications are uploaded to PIC. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Finding 2022 ? 002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Reporting ? PIH Information Center (PIC) Reporting Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Condition: The Authority did not satisfy PIC reporting requirements in accordance with 24 CFR Part 908. Exceptions were noted in 4 out of 40 recertifications. In each of the four instances, the HUD-50058 was unable to be located within the PIC system. Cause: The Authority did not identify recertifications that failed to upload to the PIC system. Auditor?s Recommendations: Recommend that the Authority implement controls to ensure HUD-50058 recertifications are uploaded to PIC. Response to Finding 2022-002 The Authority generally concurs with the auditor?s findings and recommendations. The 2022 Audit included the review of 40 Recertifications and identified four instances where the HUD- 50058 was not located within the PIC system. Action Taken: A Corrective Action Plan has been developed to ensure HUD-50058 recertifications are uploaded to PIC. Implementation began on August 1, 2023. To provide consistency, the plan is to upload the HUD-50058 sixty days in advance of the recertification date. HAKC will upload the HUD-50058 every week to ensure recertifications are registered in PIC. In addition, we will increase quality control file reviews and conduct such reviews on a more frequent basis to identify errors sooner and address the cause of errors quickly to prevent systemic errors. Errors will be identified by error type and the person who made the error. Patterns of errors will be monitored, and additional training provided for similar error types that are frequently repeated and persons who are identified as frequently making errors. Name of the contact person responsible for corrective action: Edwin Lowndes Executive Director. Planned completion date for corrective action plan: March 1, 2024.

Categories

HUD Housing Programs Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 31194 2022-001
    Significant Deficiency
  • 31196 2022-003
    Significant Deficiency
  • 31197 2022-004
    Significant Deficiency
  • 31198 2022-005
    Material Weakness
  • 31199 2022-001
    Significant Deficiency
  • 31200 2022-002
    Significant Deficiency
  • 31201 2022-003
    Significant Deficiency
  • 31202 2022-004
    Significant Deficiency
  • 31203 2022-005
    Material Weakness
  • 31204 2022-001
    Significant Deficiency
  • 31205 2022-002
    Significant Deficiency
  • 31206 2022-003
    Significant Deficiency
  • 31207 2022-004
    Significant Deficiency
  • 31208 2022-005
    Material Weakness
  • 607636 2022-001
    Significant Deficiency
  • 607637 2022-002
    Significant Deficiency
  • 607638 2022-003
    Significant Deficiency
  • 607639 2022-004
    Significant Deficiency
  • 607640 2022-005
    Material Weakness
  • 607641 2022-001
    Significant Deficiency
  • 607642 2022-002
    Significant Deficiency
  • 607643 2022-003
    Significant Deficiency
  • 607644 2022-004
    Significant Deficiency
  • 607645 2022-005
    Material Weakness
  • 607646 2022-001
    Significant Deficiency
  • 607647 2022-002
    Significant Deficiency
  • 607648 2022-003
    Significant Deficiency
  • 607649 2022-004
    Significant Deficiency
  • 607650 2022-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $9.36M
14.872 Public Housing Capital Fund $5.17M
14.889 Choice Neighborhoods Implementation Grants $4.79M
14.879 Mainstream Vouchers $805,975
14.871 Section 8 Housing Choice Vouchers $767,658
14.896 Family Self-Sufficiency Program $276,510
14.870 Resident Opportunity and Supportive Services - Service Coordinators $109,504