Finding 480254 (2023-002)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-08-01

AI Summary

  • Core Issue: The Housing Authority lacks current pension plan documentation, preventing a review of funding accuracy.
  • Impacted Requirements: Unable to assess coverage, funding amounts, and employee contributions due to missing information.
  • Recommended Follow-Up: Obtain the current pension plan from the provider and review all related payments for compliance.

Finding Text

2023-002 Pension Criteria: The Housing Authority should have pension plan documentation available to be reviewed. Condition: The Housing Authority could not provide us with the current pension plan so we were unable to determine if the pension was correctly funded. Question Cost: Unknown Effect: We were unable to determine who was covered by the pension plan, the amount the Authority was funding and the amount that the employees should be contributing. Cause: Lack of documentation. Recommendation: We recommend the Housing Authority obtain a copy of the current pension plan from their pension provider and review payments made by the authority and it’s employs to determine if the pension has been correctly funded.

Corrective Action Plan

Due to shredding and removing of documents by former staff, LSHA staff could not readily provide copies of the active pension plans. LSHA has held several meetings with pension providers, Empower and HART to recreate documents and be provided with copies of emails and documents. LSHA's new IT company has also been able to retrieve deleted documents off the server to assist the new Executive Director. The previous Interim Deputy Executive Director initiated the process to switch providers. The legitimacy of the transition is being thoroughly reviewed. It appears that the new Pension providers HART that was originally initiated by the previous Deputy Director, Tammy Dryer, was never followed up on and employee paperwork turned in. The current Pension provider Empower is still currently the agency's (LSHA) pension provider, as Tammy initiated and email to end but never completed the paperwork to end the contract. In addition, pensions for past employees were still being paid into the plan. As of June 6th, 2024, the current Executive Director has completed all necessary paperwork to correct the employee roster. The current Executive Director authorized for the Former Executive Director Erik Berg's pension payment/transfer to be released on May 31, 2024. The current Executive Director, Lisa Dickerson met with HART on June 5, 2024, and the agency will be moving the pension plan from Empower to HART effective July 1, 2024, as per the previous Board Resolution in September 2023. There was and will not be any gap in the pension plan for the agency.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 480253 2023-001
    Material Weakness
  • 480255 2023-003
    Material Weakness
  • 1056695 2023-001
    Material Weakness
  • 1056696 2023-002
    Material Weakness
  • 1056697 2023-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $5.63M
14.872 Public Housing Capital Fund $312,774
14.850 Public and Indian Housing $155,825