Finding 44746 (2022-004)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-08-06

AI Summary

  • Core Issue: Lack of segregation of duties in the preparation and submission of the Voucher for Payment of Annual Contributions and Operating Statement.
  • Impacted Requirements: Monthly reporting to HUD via the Voucher Management System (VMS) is not adequately controlled.
  • Recommended Follow-Up: Implement internal controls to ensure compliance with reporting requirements and prevent recurrence of this issue.

Finding Text

Federal Program ? Section 8 Housing Choice Voucher Program AL #14.871 ? Reporting ? Voucher for Payment of Annual Contributions and Operating Statement Federal Program Section 8 Housing Choice Vouchers AL #14.871 ? Significant Deficiency Criteria The Authority is required to submit the Voucher for Payment of Annual Contributions and Operating Statement report monthly to HUD via the Voucher Management System (VMS). Condition During our testing of reporting, we noted that there were no processes in place that segregated duties of the individual preparing or submitting the Voucher for Payment of Annual Contribution and Operating Statement using VMS. Questioned Costs None Context During testing, we reviewed all required reports. Effect Information reported was not appropriately reviewed by an additional individual. Cause The Authority experienced turnover in the Section 8 program. As a result, controls were not in place to ensure proper reporting. Repeat Finding This is a repeat of finding 2021-004. Recommendation We recommend that the Authority implement proper internal controls to ensure the Authority?s compliance with reporting requirements. Views of Responsible Officials We are aware of the issue and have taken subsequent steps to ensure compliance with this requirement.

Corrective Action Plan

1. Correcting Plan CHEDA staff are aware of Voucher for Payment of Annual Contributions and Operating Statement report monthly to HUD via the Voucher Management System (VMS) requirements and will implement appropriate review of statements prior to submission. 2. Explanation of Disagreement with the Audit Finding There is essentially no disagreement with the finding. 3. Official Responsible for Ensuring CAP Karie Kirschbaum ? Executive Director 4. Planned Completion Date for CAP Immediately. 5. Plan to Monitor Completion of CAP The Executive Director will monitor completion of the CAP.

Categories

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

Other Findings in this Audit

  • 44744 2022-002
    Material Weakness
  • 44745 2022-003
    Significant Deficiency
  • 621186 2022-002
    Material Weakness
  • 621187 2022-003
    Significant Deficiency
  • 621188 2022-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $908,460
14.850 Public and Indian Housing $128,491
14.872 Public Housing Capital Fund $26,145
10.854 Rural Economic Development Loans and Grants $24,750