Finding 393361 (2023-009)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-04-16

AI Summary

  • Core Issue: The Authority lacks adequate internal controls for compliance with reporting requirements for the Housing Voucher Cluster program.
  • Impacted Requirements: Failure to submit a properly reviewed annual certification (HUD-52648) as mandated by HUD and the Uniform Guidance.
  • Recommended Follow-up: Implement stronger internal controls to ensure compliance with reporting requirements and enhance oversight in the preparation and submission process.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2023 Award Period: July 1, 2022 – June 30, 2023 Compliance Requirement: Reporting Type of Finding:  Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: HUD-52648, SEMAP Certification – Under 24 CFR section 985.3(h), the Authority is required to submit an annual certification to HUD concerning its performance in key Section 8 program areas. The Uniform Guidance requires that the Authority establish and maintain effective internal control over compliance requirements. Condition: During our testing, we noted that the Authority did not have adequate internal controls designed to ensure that they followed applicable reporting requirements. Questioned costs: Unable to determine. Context: The annual report that was reviewed was prepared and submitted by the same person, which means that there was no review conducted by another person. This lack of review indicates that there was no internal control in place to ensure that the report was sufficiently reviewed and approved. Cause: The Authority does not have a sufficient internal control included in their procedures for preparing and submitting the SEMAP. Effect: The Authority is not in compliance with applicable reporting requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls in order to ensure reporting requirements are met in accordance with applicable grant agreements and regulations. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend that the Authority implements controls in order to ensure reporting requirements are met in accordance with applicable grant agreements and regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Action planned/taken in response to finding: The Director of HCVP Operations and the Director of HCVP Administration will each independently review their portions of the SEMAP certifications that apply to their business units and sign off. Once complete, all SEMAP certifications for the HCVP will be forwarded to the Director of Rental Assistance and Compliance for final review/validation. The Director of Rental Assistance and Compliance will be responsible for directly submitting validated SEMAP data to HUD. Name(s) of the contact person(s) responsible for corrective action: Lenzy Morris, HCVP Director of Operations, Yolanda Dennison, HCVP Director of Administration, and Lisa T. Wilkerson, Director of Rental Assistance and Compliance Planned completion date for corrective action plan: Effective with fiscal year 2024 SEMAP certification.

Categories

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

Other Findings in this Audit

  • 393344 2023-002
    Material Weakness Repeat
  • 393345 2023-002
    Material Weakness Repeat
  • 393346 2023-002
    Material Weakness Repeat
  • 393347 2023-003
    Material Weakness Repeat
  • 393348 2023-003
    Material Weakness Repeat
  • 393349 2023-003
    Material Weakness Repeat
  • 393350 2023-004
    Material Weakness Repeat
  • 393351 2023-004
    Material Weakness Repeat
  • 393352 2023-004
    Material Weakness Repeat
  • 393353 2023-005
    Material Weakness Repeat
  • 393354 2023-006
    Material Weakness
  • 393355 2023-007
    Significant Deficiency Repeat
  • 393356 2023-007
    Significant Deficiency Repeat
  • 393357 2023-007
    Significant Deficiency Repeat
  • 393358 2023-008
    Significant Deficiency
  • 393359 2023-008
    Significant Deficiency
  • 393360 2023-008
    Significant Deficiency
  • 393362 2023-009
    Significant Deficiency
  • 393363 2023-009
    Significant Deficiency
  • 393364 2023-010
    Significant Deficiency
  • 393365 2023-010
    Significant Deficiency
  • 393366 2023-010
    Significant Deficiency
  • 969786 2023-002
    Material Weakness Repeat
  • 969787 2023-002
    Material Weakness Repeat
  • 969788 2023-002
    Material Weakness Repeat
  • 969789 2023-003
    Material Weakness Repeat
  • 969790 2023-003
    Material Weakness Repeat
  • 969791 2023-003
    Material Weakness Repeat
  • 969792 2023-004
    Material Weakness Repeat
  • 969793 2023-004
    Material Weakness Repeat
  • 969794 2023-004
    Material Weakness Repeat
  • 969795 2023-005
    Material Weakness Repeat
  • 969796 2023-006
    Material Weakness
  • 969797 2023-007
    Significant Deficiency Repeat
  • 969798 2023-007
    Significant Deficiency Repeat
  • 969799 2023-007
    Significant Deficiency Repeat
  • 969800 2023-008
    Significant Deficiency
  • 969801 2023-008
    Significant Deficiency
  • 969802 2023-008
    Significant Deficiency
  • 969803 2023-009
    Significant Deficiency
  • 969804 2023-009
    Significant Deficiency
  • 969805 2023-009
    Significant Deficiency
  • 969806 2023-010
    Significant Deficiency
  • 969807 2023-010
    Significant Deficiency
  • 969808 2023-010
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.023 Emergency Rental Assistance Program $179.83M
14.195 Section 8 Housing Assistance Payments Program $158.19M
21.026 Homeowner Assistance Fund $122.54M
14.275 Housing Trust Fund $6.62M
14.239 Home Investment Partnerships Program $4.63M
14.871 Section 8 Housing Choice Vouchers $2.26M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $961,767
14.879 Mainstream Vouchers $285,184