Finding 31196 (2022-003)

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

AI Summary

  • Core Issue: The Authority failed to ensure that monthly Housing Assistance Payments (HAP) matched across required documents, leading to a significant deficiency in internal controls.
  • Impacted Requirements: Compliance with HAP payment regulations as outlined in 24 CFR sections 982.158 and 982, Subpart K.
  • Recommended Follow-Up: Implement controls to verify that HAP payments align with the HUD-50058 and HAP contract to ensure compliance.

Finding Text

2022 ? 003 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: Special Tests and Provisions ? Housing Assistance Payment (HAP) Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. This HAP amount must be reflected on the HAP contract and HAP register (24 CFR section 982.158 and 24 CFR Part 982, Subpart K). Condition: The Authority did not ensure the monthly HAP payment agreed between the HUD-50058, HAP contract, and HAP register in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 2 out of 40 files tested for Housing Assistance Payments. In both instances, the HAP register did not agree to the HUD-50058 and HAP contract. The sample was statistically valid. Cause: The Authority did not identify variances between the HUD-50058, HAP contract, and HAP register. Effect: The Authority is not in compliance with HAP requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure the HAP paid agrees to the HUD-50058 and HAP contract. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Finding 2022 ? 003 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: Special Tests and Provisions ? Housing Assistance Payment (HAP) Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters- Condition: The Authority did not ensure the monthly HAP payment agreed between the HUD- 50058, HAP contract, and HAP register in accordance with program compliance requirements. Exceptions were noted in 2 out of 40 files tested for Housing Assistance Payments. In both instances, the HAP register did not agree to the HUD-50058 and HAP contract. Cause: The Authority did not identify variances between the HUD-50058, HAP contract, and HAP register. Auditors Recommendation: Recommend that the Authority implements controls to ensure the HAP paid agrees to the HUD-50058 and HAP contract. Response to Finding 2022-003 The Authority generally concurs with the auditor?s findings and recommendations. The 2022 Audit included the review of 40 files tested for Housing Assistance Payments. In two instances, the HAP register did not agree to the HUD-50058 and HAP contract. Action Taken: A Corrective Action Plan has been developed to ensure the HAP register agrees with the HUD 50058 and HAP contract. Implementation began on August 1, 2023. To provide consistency for the HUD 50058 HAKC will increase staff knowledge and reduce errors through training. This will be held immediately and then annually thereafter. 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. In regard to the HAP contract, going forward any new HAP contracts will be reviewed by the supervisor of the department before the HAP is enforced. The supervisor will sign the HAP contract if no errors are found. With this quality control in effect, the HAP contract will match the HAP register. Quality reviews will also be conducted by compliance to check the HAP contracts to make sure they comply. 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 Special Tests & Provisions Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 31194 2022-001
    Significant Deficiency
  • 31195 2022-002
    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