Finding Text
2022-002-SEMAP and Quality Control Needs Better Documentation Criteria and Specific Requirement SEMAP is a required method of reporting on the Housing Choice Voucher Program that reports on various aspects of quality control checking. Even in the years that SEMAP is not required to be filed, the Authority should have documented internal control over compliance of the waiting list, tenant files, and inspection functions that is sufficient to detect errors and oversight. Statement on Auditing Standard (SAS) #115 dictates that ?inadequate design of controls over a significant account or process? is defined by the Standard as at least a significant deficiency, if not a material weakness. Condition Found (a)-for the move-ins tested, the move-ins were listed on the waiting list. However, none of the move-ins in our sample were on the top of the waiting list. Often, there were several applicants listed above the move-in participant., without an explanation. There should be notes for why the above applicants listed were not moved in before the one of our sample. Some of the typical reasons we often see is ?voucher expired?, ?no longer interested?, or ?unable to contact.? Most computerized waiting lists allow the Authority to list in ?notes? the reason why applicant was not moved in. Or, manual explanations can be added on the waiting list. The Admin Plan states there are no local preferences. So, giving points for preferences is not a reason that should be listed for early admittance. (b)-The waiting list was tested. However, per the federal regulations, half the sample should start with the waiting list and review the disposition. The other half should start with the current year admits and work back from the waiting list. It appears the sample was not pulled in the above manner. Regarding the definition of the total universe, this has never been exactly defined. If the Authority has received direction from HUD about the definition of the universe, the Authority should follow that direction. (c)-It appears the waiting list was not purged annually, in accordance with the Admin Plan. Cause Apparent oversight. Effect Quality control review over certain aspects of the Housing Choice Voucher Program may not have been adequate, which increases the possibility of error. Recommendation Management should carefully review the directions of preparing SEMAP per the Final Rule issued by HUD. In addition, we recommend that the Executive Director and at least the employee involved with preparation of the SEMAP and quality control review attend a webcast or seminar on preparing SEMAP. Origination Date and Prior Year Reference The finding originated in the prior year. View of Responsible Official We will comply with the auditor?s recommendation.