FAC Explorer

Finding 485144 (2024-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2024-08-27
Audit: 317959
Organization: East Central Kansas Economic Opportunity Corporation (KS)
Auditor: Ssc CPAS P A

AI Summary

  • Core Issue: Inadequate documentation for verifying eligibility of individuals with zero income in the Section 8 Housing Choice Vouchers program.
  • Impacted Requirements: Proper documentation, including signed no income affidavits, is required for program compliance.
  • Recommended Follow-Up: Management should establish and enforce written policies and procedures to ensure proper documentation is maintained for eligibility verification.

Finding Text

2024‐001 Compliance and Controls over Eligibility of the Section 8 Housing Choice Vouchers Program (Significant Deficiency) Federal Agency: Department of Housing and Urban Development Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Award period: Year ended March 31, 2024 Criteria: The Section 8 Housing Choice Vouchers program requires that proper documentation be maintained for individuals participating in the program. This includes a signed no income affidavit for those participants that have zero income. Condition: We have determined that there was an inadequate documentation process for verifying individuals with zero income for eligibility. Cause: The Organization’s policies and procedures were not in place and working properly to track this verification step. Effect: Two individuals with zero incomes were tested and both did not have the proper documentation included within their file. Recommendation: We recommend the Board of Directors and management review the controls over the eligibility process to ensure the process is being followed and implemented correctly. Questioned costs: None Repeat Finding: N/a. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and plans to develop proper written policies and procedures for the internal control over compliance to ensure that proper documentation that supports eligibility of individuals participating in the Section 8 Housing Choice Vouchers Program is maintained.

Corrective Action Plan

August 20, 2024 Department of Housing and Urban Development Washington DC East Central Kansas Economic Opportunity Corporation respectfully submits the following corrective action plan for the year ended March 31, 2024. SSC CPAs, PA 3320 Clinton Parkway Court, Suite 120 Lawrence, KS 66047 Audit Period: Year ended March 31, 2024 The finding from March 31, 2024, schedule of findings and questioned costs are discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS 2024-001 Compliance and Controls over Eligibility of the Section 8 Housing Choice Vouchers Program (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Award Period: March 31, 2024 Recommendation: The Board of Directors and management review the controls over the eligibility process to ensure the process is being followed and implemented correctly. Action Taken (Unaudited): ECKAN will create a policy in its Admin Plan, using any new HOTMA rules that may apply, to require zero-income forms in client files for households claiming zero-income. This Admin Plan edit will be presented to the ECKAN Board of Trustees for approval. Effective immediately (as of date of file inspection) ECKAN will use the Zero Income Verification Form for any new families claiming zero income. This had been a practice within the department but had not been formalized or provided oversight. ECKAN will also take steps to ensure current client files are searched for any families who claimed zero income prior and either locate the form or initiate contact with the family to obtain a completed form. A tracking spreadsheet will be created to ensure a complete list of zero-income households is maintained and monitored by the ECKAN housing staff. Anticipated completion date is March 31, 2025. If the Department of Housing and Urban Development has questions regarding this plan, please call Crystal Anderson at 785-242-7450. Sincerely yours, Crystal Anderson Crystal Anderson CEO East Central Kansas Economic Opportunity Corporation

Categories

HUD Housing Programs Allowable Costs / Cost Principles Eligibility Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1061586 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.568 Low-Income Home Energy Assistance $1.87M
14.871 Section 8 Housing Choice Vouchers $1.19M
81.042 Weatherization Assistance for Low-Income Persons $794,239
93.569 Community Services Block Grant $767,266
93.575 Child Care and Development Block Grant $571,306
93.600 Head Start $478,345
93.558 Temporary Assistance for Needy Families $424,052
21.027 Coronavirus State and Local Fiscal Recovery Funds $161,797
10.558 Child and Adult Care Food Program $148,301