Finding 480643 (2023-004)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-08-07

AI Summary

  • Core Issue: Two out of 60 tenant files lacked required asset documentation, violating 24 CFR 985.516.
  • Impacted Requirements: Eligibility compliance for Section 8 Housing Choice Vouchers is compromised, risking incorrect Housing Assistance Payments (HAP).
  • Recommended Follow-Up: Management should enhance monitoring processes and consider additional training for housing specialists to ensure proper documentation is maintained.

Finding Text

2023-004 Asset Supporting Documentation for Family Income Examinations Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA) Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901 Award Period: January 1, 2023 – December 31, 2023 Compliance Requirement: Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or specific requirement: Per 24 CFR 985.516, the tenant file and application must obtain 3rd party verification of assets. Condition: During our testing, we noted two tenant files out of 60 files tested were missing the required supporting asset documentation. Questioned costs: None Context: From a sample of 60 program participant files selected for testing, two tenants were missing asset documentation. Cause: The Housing Specialist did not obtain (or retain) the documentation to support the assets listed on Form 50058. Effect: File did not contain required information per 24 CFR 985.516. A program participant could have been receiving the incorrect amount of HAP. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.

Corrective Action Plan

ICS will provide additional training to current and new staff regarding the importance of retaining asset documentation. ICS will also request that staff review files as they are scanning to assure that documentation is included and scanned properly before saving and shredding the paper file. ICS will also encourage staff provide in writing on the documents how they calculated what was entered. They can either circle the amount they are using or if a calculation is necessary they should write the equation on the verification so all parties know how they came to the amount they are entering into the file. Names of the contact persons responsible for corrective action: Matt Roberts and Megan Walker Planned completion date for corrective action plan: Immediately.

Categories

HUD Housing Programs Subrecipient Monitoring Eligibility Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 480644 2023-004
    Significant Deficiency
  • 480645 2023-004
    Significant Deficiency
  • 480646 2023-004
    Significant Deficiency
  • 480647 2023-004
    Significant Deficiency
  • 480648 2023-005
    Significant Deficiency
  • 480649 2023-005
    Significant Deficiency
  • 480650 2023-005
    Significant Deficiency
  • 480651 2023-005
    Significant Deficiency
  • 480652 2023-005
    Significant Deficiency
  • 480653 2023-006
    Significant Deficiency Repeat
  • 480654 2023-006
    Significant Deficiency Repeat
  • 480655 2023-006
    Significant Deficiency Repeat
  • 480656 2023-006
    Significant Deficiency Repeat
  • 480657 2023-006
    Significant Deficiency Repeat
  • 480658 2023-007
    Significant Deficiency
  • 480659 2023-007
    Significant Deficiency
  • 480660 2023-007
    Significant Deficiency
  • 480661 2023-007
    Significant Deficiency
  • 480662 2023-007
    Significant Deficiency
  • 480663 2023-008
    Material Weakness
  • 480664 2023-008
    Material Weakness
  • 480665 2023-008
    Material Weakness
  • 480666 2023-008
    Material Weakness
  • 480667 2023-008
    Material Weakness
  • 1057085 2023-004
    Significant Deficiency
  • 1057086 2023-004
    Significant Deficiency
  • 1057087 2023-004
    Significant Deficiency
  • 1057088 2023-004
    Significant Deficiency
  • 1057089 2023-004
    Significant Deficiency
  • 1057090 2023-005
    Significant Deficiency
  • 1057091 2023-005
    Significant Deficiency
  • 1057092 2023-005
    Significant Deficiency
  • 1057093 2023-005
    Significant Deficiency
  • 1057094 2023-005
    Significant Deficiency
  • 1057095 2023-006
    Significant Deficiency Repeat
  • 1057096 2023-006
    Significant Deficiency Repeat
  • 1057097 2023-006
    Significant Deficiency Repeat
  • 1057098 2023-006
    Significant Deficiency Repeat
  • 1057099 2023-006
    Significant Deficiency Repeat
  • 1057100 2023-007
    Significant Deficiency
  • 1057101 2023-007
    Significant Deficiency
  • 1057102 2023-007
    Significant Deficiency
  • 1057103 2023-007
    Significant Deficiency
  • 1057104 2023-007
    Significant Deficiency
  • 1057105 2023-008
    Material Weakness
  • 1057106 2023-008
    Material Weakness
  • 1057107 2023-008
    Material Weakness
  • 1057108 2023-008
    Material Weakness
  • 1057109 2023-008
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $603,094
14.896 Family Self-Sufficiency Program $119,026