Finding 44744 (2022-002)

Federal Program ? Section 8 Housing Choice Voucher Program AL #14.871 ? Allowable Costs/Cost Principles Federal Program Section 8 Housing Choice Vouchers AL #14.871 ? Material Weakness Criteria Amounts paid under the Section 8 Vouchers Program must meet allowable costs/cost principles per HUD?s annual guidance. Condition During our testing of disbursements, we noted five instances of the Authority not having documentation to support a fifty percent allocation of payroll costs to the vouchers program. Questioned Costs Undeterminable. Context We reviewed a random sample of twenty-five disbursements from the Section 8 Vouchers Program. Effect The allocated payroll costs to the Section 8 Vouchers Program were undeterminable due to the fact that no documentation support for the allocation was provided. Cause The Authority experienced turnover in the Section 8 program. As a result, payroll allocation documentations were not saved as the previous year allocations were used. Repeat Finding This is not a repeat finding from the prior year. Recommendation We recommend that the Authority implement proper internal controls to ensure the Authority?s compliance with adequate documentation. Views of Responsible Officials We are aware of the issue and have taken subsequent steps to ensure compliance with this requirement.