Finding 37124 (2022-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-26
Audit: 28069
Auditor: Marcum LLP

AI Summary

  • Core Issue: The Authority failed to review and reconcile VMS submissions to supporting documents, risking inaccurate data reporting.
  • Impacted Requirements: Monthly electronic submission of HUD-52681-B data is essential for determining funding levels and monitoring by HUD.
  • Recommended Follow-Up: Implement a control process to ensure VMS data is reconciled with supporting documentation before submission.

Finding Text

2022-003 ? REPORTING ? FINANCIAL REPORTS Significant Deficiency / Other Matter U.S. Department of Housing and Urban Development CFDA #: 14.871 / 14.879 ? Housing Voucher Cluster CRITERIA Electronic submission of form HUD-52681-B data is a monthly requirement. The PHA submits this form monthly to HUD electronically via the VMS. Congress has instructed HUD to use VMS data to determine renewal funding levels. HUD also uses VMS data for other funding, monitoring, and SEMAP-related decisions. HUD relies on the audit of the key line items below to determine the reasonableness of the data submitted for the purposes of calculating funding under the program. CONDITION During the fiscal year ended June 30, 2022, the Authority?s internal controls over the submission of VMS to HUD did not include a review or reconciliation of the information submitted to supporting documentation. CAUSE The Authority had not established sufficient internal controls related to this submission requirement. EFFECT HUD uses the information submitted to determine renewal funding levels, and for other funding and monitoring decisions. Inaccurate information submitted could affect decisions made by HUD. QUESTIONED COSTS None Identified. CONTEXT Electronic submission of form HUD-52681-B data is a monthly requirement. REPEAT FINDING Not a repeat finding. RECOMMENDATION The Authority should implement a control of the information being entered into VMS is reconciled to supporting documentation. AUDITEE?S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.

Categories

HUD Housing Programs Subrecipient Monitoring Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 37118 2022-007
    Significant Deficiency
  • 37119 2022-003
    Significant Deficiency
  • 37120 2022-004
    Material Weakness
  • 37121 2022-005
    Significant Deficiency
  • 37122 2022-006
    Material Weakness
  • 37123 2022-002
    Material Weakness
  • 37125 2022-004
    Material Weakness
  • 37126 2022-005
    Significant Deficiency
  • 37127 2022-006
    Material Weakness
  • 37128 2022-002
    Material Weakness
  • 37129 2022-004
    Material Weakness
  • 37130 2022-004
    Material Weakness
  • 613560 2022-007
    Significant Deficiency
  • 613561 2022-003
    Significant Deficiency
  • 613562 2022-004
    Material Weakness
  • 613563 2022-005
    Significant Deficiency
  • 613564 2022-006
    Material Weakness
  • 613565 2022-002
    Material Weakness
  • 613566 2022-003
    Significant Deficiency
  • 613567 2022-004
    Material Weakness
  • 613568 2022-005
    Significant Deficiency
  • 613569 2022-006
    Material Weakness
  • 613570 2022-002
    Material Weakness
  • 613571 2022-004
    Material Weakness
  • 613572 2022-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $3.02M
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $1.42M
14.850 Public and Indian Housing $466,976
14.871 Section 8 Housing Choice Vouchers $319,577
14.879 Mainstream Vouchers $173,889
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $44,546