Finding 37801 (2022-001)

Significant Deficiency 2022-001 Beneficiary Reporting (Internal Control) Condition: The Organization?s internal control procedures did not include reviewing the HOME Program Housing Beneficiary Reports for accuracy prior to submission to the applicable oversite agency. Criteria: The Organization is required to submit HOME Program Housing Beneficiary Reports in connection with the HOME funds it has received based on tenant income certifications. Cause: The Organization hired a third party vendor to prepare the reports but did not have a review process to ensure the information in the report was correct. Effect: There were errors in the reports filed with Clark County and the City of Las Vegas due to incorrect tenant income certifications being utilized to complete the reports. We noted four errors of the amount of rent reported and two errors of the unit type reported. We selected 28 reports for testing from the population of 138, which is not a statistically valid selection. None of the errors resulted in the units not meeting the affordability requirements or any other federally reported requirement. Questioned Costs: None Repeat Finding: The finding was not a repeat of a prior year finding. Auditor?s Recommendation: We recommend that a responsible employee review and all HOME Program Housing Beneficiary Reports for accuracy prior to their submission to the applicable oversite agency. The review should be documented. Views Of Responsible Officials And Planned Corrective Actions: Management agrees with the auditor?s recommendation. The director of Low-Income Housing Tax Credit and Compliance will review and approve all of the HOME Program Housing Beneficiary Reports prior to them being submitted to Clark County or the City of Las Vegas.