Finding Text
Finding No. 2022-004 Housing Choice Voucher Cluster, CFDA #14.871 and #14.879 Compliance Requirement: Reporting Type of Finding: Noncompliance, Significant Deficiency Condition During a HUD Compliance Review, the results of several indicators of the Section 8 Management Assessment Program (SEMAP) were changed resulting in the Authority being designated as a Troubled Performer. Criteria When the Authority conducts its SEMAP, it should be properly documented how they selected sample sizes and the methods that were used to ensure that the items being tested were properly calculated. Cause The overall cause was a lack of quality control in performing the SEMAP. Effect By not properly conducting and documenting the SEMAP, the Housing Authority is labeled as a Troubled Performer. Additionally, the SEMAP is a good control tool to ensure that the HCV program is being conducted in accordance with HUD regulations. Context Indicator #3: The Authority was unable to provide any documentation of how it selected the sample size or what methods they used to ensure that rents were properly calculated. Indicator #5: The Authority could not provide a log or documents that showed how sample size was selected, the Authority chose a cross sectional area of units to inspect and that the inspected units were for the fiscal period. Indicator #6: No documentation provided. Indicator #8: No documentation provided. Questioned Costs N/A Recommendation The Housing Authority should develop better internal controls over the performance and documentation of SEMAP or consider outsourcing this to a reputable third party. 60