Finding 375533 (2023-006)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-03-11

AI Summary

  • Core Issue: The Authority overreported HAP payments by $5,310 due to incorrect data entry in the Voucher Management System.
  • Impacted Requirements: Monthly reporting accuracy in the VMS is essential, and the Executive Director is responsible for ensuring this accuracy.
  • Recommended Follow-Up: The Authority should establish procedures to review VMS data and consider the feasibility of implementing effective controls given limited staff.

Finding Text

Finding 2023-006: Voucher Management System Reporting Housing Choice Voucher – 14.871 Material Weakness/Noncompliance – Reporting Criteria: The Authority must report monthly in the Voucher Management System (VMS) information related to number of vouchers and the dollar amount of HAP payments made that month along with a variety of other information. The Authority should have procedures to ensure the accuracy of that information reported. Condition: During our audit, we noted the amount reported for HAP in the VMS system was higher than the amount reported on the general ledger. In reviewing the matter, we noted the amounts reported for the month of June, 2023 were not correct. The responsibility for reporting this information is solely the responsibility of the Executive Director so we inquired for her to review this. She indicated she had incorrectly reported the HAP dollar amount for tenant protection vouchers in both that category and also in the “All Others” category. Cause: The Authority did not have procedures in place to review information submitted to identify and correct errors in reporting in a timely fashion. Effect or Potential Effect: The Authority overreported HAP payments by $5,310 for the fiscal year ending June 30, 2023. Recommendation: The Authority should review its system for reporting VMS data. Based on the limited administrative staff the Authority has, effective controls may not be reasonably achieved. View of the Responsible Officials of the Auditee: The auditee’s management agrees with the finding.

Corrective Action Plan

Finding 2023-006: Voucher Management System Reporting NHA Corrective Action: In process. The fee accountant will now complete the VMS report monthly. The executive director will review these reports monthly. The executive director will conduct an annual review of VMS at the YE closing in June (done in July or August prior to FDS submission) and before HUD pulls VMS data for annual renewal funding (usually done in January). This will ensure that all VMS data is reviewed by both management and the fee accountants, increasing the likelihood that any error will be caught and corrected in a timely manner.

Categories

HUD Housing Programs Material Weakness Reporting

Other Findings in this Audit

  • 375529 2023-003
    Material Weakness Repeat
  • 375530 2023-003
    - Repeat
  • 375531 2023-004
    Material Weakness
  • 375532 2023-005
    Material Weakness
  • 951971 2023-003
    Material Weakness Repeat
  • 951972 2023-003
    - Repeat
  • 951973 2023-004
    Material Weakness
  • 951974 2023-005
    Material Weakness
  • 951975 2023-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $375,523
14.850 Public and Indian Housing $360,784
14.872 Public Housing Capital Fund $252,819