Finding Text
2022-002 ? ACTIVITIES ALLOWED / UN-ALLOWED Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.871 / 14.879 ? Housing Voucher Cluster CRITERIA The HA must use program receipts to provide decent, sage, and sanitary housing for eligible families in compliance with U.S. Housing Act of 1937 and all HUD requirements. Program receipts may only be used to pay program expenditures. (Annual Contributions Contract) CONDITION As a result of our audit procedures, we identified the following expenses that were incorrectly charged to the Housing Choice Voucher Program: ? Dump truck repairs & plow kit(s) ? Payroll and benefit expenses for the Leasing Coordinator, whose job responsibilities were updated in 2018 to include working on other programs. However, the HCV program was charged 100% of the salary and benefit cost. ? Payroll processing fees, which prior to adjustments was allocated 64% of the cost despite having approximately 25% of the total employees. ? Professional organization fees that appear to be for executive management, which should have been charged to the Central Office Cost Center. CAUSE During the year ended June 30, 2022, the Authority did not have sufficient internal controls related to the allocation of expenses between programs. EFFECT The federal program was charged for expenditures relating to other programs. QUESTIONED COSTS None identified as the Authority refunded the HCV Program. CONTEXT Total non-Housing Assistance Payments expense for the HCV/ Mainstream Programs were $1,905,167. REPEAT FINDING Not a repeat finding. RECOMMENDATION On an annual basis, the Authority should review all indirect cost allocation to ensure that the allocations are reasonable and comply with HUD requirements. AUDITEE?S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.