Finding 478276 (2023-002)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-07-11

AI Summary

  • Core Issue: The Authority lacks documentation for 21 cost allocations in the Section 8 Vouchers Program, violating HUD guidelines.
  • Impacted Requirements: Compliance with allowable costs/cost principles as outlined in HUD’s annual guidance.
  • Recommended Follow-Up: Implement stronger internal controls to ensure all cost allocations are properly documented and compliant.

Finding Text

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 21 instances of the Authority not having documentation to support an allocation of costs to the vouchers program. Questioned Costs Undeterminable. Context We reviewed a random sample of twenty-four disbursements from the Section 8 Vouchers Program. Effect The allocated 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, allocation documentations were not saved as the previous year allocations were used. Repeat Finding This is a repeat of finding 2022-002. 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.

Corrective Action Plan

1. Correcting Plan CHEDA staff are aware of allowable cost proper documentations, and will implement an internal control process. 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

Allowable Costs / Cost Principles HUD Housing Programs

Other Findings in this Audit

  • 478277 2023-003
    Significant Deficiency Repeat
  • 478278 2023-004
    Significant Deficiency Repeat
  • 1054718 2023-002
    Material Weakness Repeat
  • 1054719 2023-003
    Significant Deficiency Repeat
  • 1054720 2023-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $997,944
14.872 Public Housing Capital Fund $237,869
14.850 Public and Indian Housing $183,062