FAC Explorer

Finding 31885 (2022-003)

Material Weakness
Requirement
AB
Questioned Costs
$1
Year
2022
Accepted
2023-09-27
Audit: 36001
Organization: Benton Franklin Community Action Committee (WA)
Auditor: Christensen King

AI Summary

  • Core Issue: Internal controls failed to verify income changes, leading to incorrect rental assistance payments.
  • Impacted Requirements: All eligible recipients must receive the correct rental subsidy based on verified income documentation.
  • Recommended Follow-Up: Implement procedures to ensure income documentation is reviewed and subsidy amounts are adjusted accordingly.

Finding Text

Department of Housing and Urban Development Material Weaknesses Condition: The internal controls over eligible recipients? rental assistance payments did not detect that the client received the incorrect subsidy amounts due to income changes not being verified at the time of notification from the client and/or having the incorrect subsidy amount be paid to the applicable landlord. Criteria: Internal controls should be in place to ensure that all eligible recipients receive the appropriate level of rental subsidy based on the income calculation supported by income documentation provided by clients Cause: Internal control policies did not include procedures for verifying that all income change information data received from supported clients is captured in the client files and rental subsidies adjusted for supportive payments made to applicable landlords. Effect: The lack of internal controls led to clients receiving incorrectly calculated subsidy payment amounts. Recommendation: BFCAC should adopt internal control procedures to ensure that all supporting income documentation provided by clients is reevaluated and subsidy amounts adjusted and that approved landlord vendor payments reflect the updated subsidy amounts.

Corrective Action Plan

2022-03* BFCAC has adopted internal controls to ensure that all supporting income documentation provided by clients is reevaluated and subsidy amounts adjusted and that approved landlord vendor payments reflect the updated subsidy amounts. The following processes has now been formalized and implemented regarding the following: ? Initial Income Calculation ? Income changes (up or down) ? Re-Certification ? Household size (up or down) ? Documentation Review ? Utility Allowance (up or down) ? Rental Increase Any and all changes listed above require a file review and sign off by either the Program Manager or the Housing Department Director prior to payment authorization. *Responsible person: Judith Gidley, Executive Director

Categories

Questioned Costs Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 31883 2022-001
    Material Weakness Repeat
  • 31884 2022-002
    Material Weakness
  • 31886 2022-001
    Material Weakness Repeat
  • 31887 2022-002
    Material Weakness
  • 31888 2022-003
    Material Weakness
  • 31889 2022-001
    Material Weakness Repeat
  • 31890 2022-002
    Material Weakness
  • 31891 2022-001
    Material Weakness Repeat
  • 31892 2022-002
    Material Weakness
  • 608325 2022-001
    Material Weakness Repeat
  • 608326 2022-002
    Material Weakness
  • 608327 2022-003
    Material Weakness
  • 608328 2022-001
    Material Weakness Repeat
  • 608329 2022-002
    Material Weakness
  • 608330 2022-003
    Material Weakness
  • 608331 2022-001
    Material Weakness Repeat
  • 608332 2022-002
    Material Weakness
  • 608333 2022-001
    Material Weakness Repeat
  • 608334 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.568 Low-Income Home Energy Assistance $3.81M
14.267 Continuum of Care Program $721,793
93.569 Community Services Block Grant $470,411
14.239 Home Investment Partnerships Program $268,235
81.042 Weatherization Assistance for Low-Income Persons $241,325
14.241 Housing Opportunities for Persons with Aids $215,238
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $131,187
81.999 Unknown $110,470