Finding 480939 (2018-010)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2018
Accepted
2024-08-12
Audit: 317044
Organization: City of Compton (CA)

AI Summary

  • Core Issue: The Housing Authority failed to maintain accurate records for the HAP equity account, violating HUD requirements.
  • Impacted Requirements: Non-compliance with Title 24 regulations on record-keeping and financial reporting.
  • Recommended Follow-Up: Strengthen internal controls to ensure accurate tracking of HAP equity accounts and address previous audit findings.

Finding Text

Criteria: Title 24- Housing and Urban Development, Part 982- Section 8 Tenant-Based Assistance: Housing Choice Voucher Program, Subpart D - Annual Contributions Contract and PHA Administration of Program, Section 982.158- Program Accounts and Records states: "(a) The PHA must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements, in a manner that permits a speedy and effective audit. The records must be in the form required by HUD, including requirements governing computerized or electronic forms of record-keeping. The PHA must comply with the financial reporting requirements in 24 CFR part 5, subpart H." Condition: The Housing Authority is required to properly account for program activity. We were unable to obtain the housing assistance payments (HAP) equity account roll-forward for the year ended June 30, 2018. Cause: Lack of internal control over the monitoring HAP equity account. Effect or Potential Effect: The Housing Authority is not in compliance with grant requirements. Questioned Cost: Unknown. The questioned costs cannot be calculated, because the total additional funding received by the Housing Authority is unknown. Context: We were unable to obtain the HAP equity account balance at June 30, 2018. Repeat of a Prior-Year Finding: 2017-009, 2016-006, 2015-008, 2014-003, 2013-013

Corrective Action Plan

Recommendation: We recommend the Housing Authority establish and implement policies and procedures over calculation of the HAP equity account. This addresses COSO's Control Activities, Principle 12: deploys through policies & procedures and Information & Communication, Principle 15: communicates externally. Corrective Action Plan: The City Controller's Office will work with the Housing Authority Director to ensure that the HAP equity balance is rolled forward on an annual basis. The City will also establish and document policies and procedures designed to serve as a system of internal controls required by OMB's Uniform Guidance (2 CFR 200). In the meantime, the Housing and City Controller department will take steps to address the specific finding noted above to ensure accurate computation of the HAP equity account. Planned Implementation Date: June 30, 2020 Responsible Person: Delmonsha Green, Housing Authority Director and Rafaela King, Controller

Categories

HUD Housing Programs Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 480930 2018-001
    Material Weakness Repeat
  • 480931 2018-002
    Material Weakness Repeat
  • 480932 2018-003
    Material Weakness Repeat
  • 480933 2018-004
    Material Weakness
  • 480934 2018-005
    Material Weakness
  • 480935 2018-006
    Material Weakness Repeat
  • 480936 2018-007
    Material Weakness Repeat
  • 480937 2018-008
    Material Weakness Repeat
  • 480938 2018-009
    Significant Deficiency Repeat
  • 1057372 2018-001
    Material Weakness Repeat
  • 1057373 2018-002
    Material Weakness Repeat
  • 1057374 2018-003
    Material Weakness Repeat
  • 1057375 2018-004
    Material Weakness
  • 1057376 2018-005
    Material Weakness
  • 1057377 2018-006
    Material Weakness Repeat
  • 1057378 2018-007
    Material Weakness Repeat
  • 1057379 2018-008
    Material Weakness Repeat
  • 1057380 2018-009
    Significant Deficiency Repeat
  • 1057381 2018-010
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $8.17M
14.218 Community Development Block Grants/entitlement Grants $614,545
14.239 Home Investment Partnership Program $282,232
14.218 Community Development Block Grants/state's Program $12,142
14.231 Emergency Shelter Grants Program $10,091
16.738 Edward Byrne Memorial Justice Assistance Grant $6,227