Finding Reference Number: 2020-002
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles: Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs
Federal Assistance Listing Numbers: 14.871 & 14.879
Material Noncompliance
Non Compliance Material to the Financial Statements: Yes
Material Weakness in Internal Control over Compliance for Eligibility
Criteria: The Authority must maintain complete and accurate accounts and other records for the program in accordance with HUD compliance requirements.
Condition: The Authority did not maintain complete and accurate accounts and other records in accordance with HUD compliance requirements including Eligibility, Reporting, and Special Tests and Provisions including selection from the waiting list, housing quality standards inspections, HQS enforcement, and housing assistance payment.
Context: The Authority was unable to provide requested documentation at the time of audit to properly test the HUD compliance requirements:
Known Questioned Costs: Unknown. Cause: There is a material weakness in internal controls over compliance for the compliance related to the maintenance of accounts and other records. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance.
Effect: The Housing Vouchers Cluster Programs are in non-compliance requirements of the program.
Recommendation: We recommend that the Authority implement a process whereby Authority documents are stored and safeguarded to ensure compliance with the Uniform Guidance and the compliance supplement.
Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Housing Vouchers Clusters Program and will implement internal control procedures that will ensure compliance with federal regulations. Ralph Staley, CFO is responsible for ensuring proper internal controls are in place to prevent significant deficiencies and material weaknesses from occurring and is expected to be completed by December 31, 2024.