Finding 481394 (2023-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-08-19
Audit: 317417
Organization: Herkimer Housing Authority (NY)

AI Summary

  • Core Issue: The Authority failed to record Project-Based Voucher (PBV) transactions in the Voucher Management System (VMS) for most of the fiscal year, violating HUD requirements.
  • Impacted Requirements: This oversight affects compliance with the Section 8 Housing Choice Vouchers Program, which mandates accurate reporting for transparency and accountability.
  • Recommended Follow-Up: Implement comprehensive staff training on VMS reporting, update internal controls for PBV transactions, and conduct regular audits to ensure compliance by June 30, 2024.

Finding Text

Criteria - HUD mandates that all Public Housing Authorities accurately record and report all voucher program activities, including Project-Based Vouchers (PBV), in the Voucher Management System (VMS). This requirement is essential for ensuring transparency, accountability and proper allocation of federal funds. Condition - The Authority did not record transactions related to PBV via the VMS for the majority of the fiscal year as required. Cause - The omission appears to stem from a lack of understanding among the Authority’s staff regarding the specifics of reporting requirements for transactions within the VMS. Additionally, a gap in the internal training programs on VMS functionalities and reporting standards contributed to this oversight. Effect - The Authority was not in compliance with the reporting requirements of the Section 8 Housing Choice Vouchers Program. Questioned Costs - None identified. Recommendation - We recommend that the Authority consider the following correct actions: 1) Conduct comprehensive training sessions for all relevant staff on the requirements and procedures for recording PBV and other voucher transactions in the VMS. 2) Examine and update, as necessary, the Authority's internal control procedures to include specific guidelines on recording PBV transactions in the VMS. 3) Implement periodic internal audits focusing on VMS data entry and reporting practices to ensure ongoing compliance with HUD's requirements. Management’s Response - (2) Finding 2023-002 (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendation, please see below for action. (b) Action taken - The Authority will strengthen internal controls and training of staff to ensure all activity is accurately reported in VMS. (c) Planned implementation date - The Authority expects to complete the corrective actions by June 30, 2024

Corrective Action Plan

Name of Auditee: Herkimer Housing Authority Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: June 30, 2023 CAP prepared by; Richard Dowe, Executive Director (A) Current Finding on the Schedule of Findings and Questioned Costs (2) Finding 2023-002 (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendation, please see below for action. (b) Action taken - The Authority will strengthen internal controls and training of staff to ensure all activity is accurately reported in VMS. (c) Planned implementation date - The Authority expects to complete the corrective actions by June 30, 2024

Categories

HUD Housing Programs Allowable Costs / Cost Principles Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 481393 2023-001
    Significant Deficiency
  • 1057835 2023-001
    Significant Deficiency
  • 1057836 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $844,897
14.872 Public Housing Capital Fund $124,604
14.850 Public and Indian Housing $99,866