Finding 504197 (2024-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2024-10-30
Audit: 326668
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: There is a significant deficiency in internal controls regarding document retention for the Workforce Housing program.
  • Impacted Requirements: Required documentation to confirm subrecipients are not on the debarred list was not properly retained.
  • Recommended Follow-Up: Management should assess current controls and decide whether to accept the risk or improve document retention processes.

Finding Text

2024-001 Department of the Treasury Federal Financial Assistance Listing #21.027 Coronavirus State and Local Relief Funds, Workforce Housing Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Criteria: Management should have an internal control system in place designed to provide for the retention and review of required documents as defined in the grant agreement and compliance supplement. Condition: In our testing of 3 subrecipients for the Workforce Housing program, there was one instance where the required documentation indicating the approved subrecipient is not on the debarred listing was not retained. Cause: The documentation was filed but not retained. Effect: All documents are not retained. Questioned Costs: None Context/Sampling: A nonstatistical sample of 3 out of a population 8 subrecipients were selected. Repeat Finding from Prior Years: No Recommendation: Management and those charged with governance should analyze the current control system and make the decision whether to accept the degree of risk associated with this condition around document retention and review or implement enhanced controls. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

2024-001 Department of the Treasury Federal Financial Assistance Listing #21.027 Coronavirus State and Local Relief Funds, Workforce Housing Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Finding Summary: As part of the testing, the auditors selected a sample of 3 subrecipients for the Workforce Housing program. Of the 3 subreceipients, there was one instance where one of the required documents indicating the approved recipient was not debarred was not retained. Responsible Individuals: Cory Phelps, VP Project Finance Corrective Action Plan: IHFA has updated its WFH checklist (as of October 2, 2024) to include OFAC checks needing to be printed to the file. Although this was being done in practice, the checklist did not previously reflect or list this as an individual step. IHFA employees involved in WFH have received the updated checklist and have received training to clarify when OFAC and debarment checks need to be completed. Before funds of WFH are dispersed, a second reviewer will verify that all required documentation was printed to the WFH folder and will initial the checklist. Anticipated Completion Date: December 31, 2024

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1080639 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.117 Mortgage Insurance Homes $4.26B
64.114 Veterans Housing Guaranteed and Insured Loans $345.01M
10.410 Very Low to Moderate Income Housing Loans and Loan Guarantees $85.90M
21.027 Coronavirus State and Local Fiscal Recovery Funds $24.20M
14.195 Project-Based Rental Assistance (pbra) $23.21M
21.023 Emergency Rental Assistance Program $20.08M
21.026 Homeowner Assistance Fund $14.59M
14.275 Housing Trust Fund $4.60M
14.267 Continuum of Care Program $3.50M
14.865 Public and Indian Housing Indian Loan Guarantee Program $1.80M
14.239 Home Investment Partnerships Program $1.75M
14.169 Housing Counseling Assistance Program $371,501
14.896 Family Self-Sufficiency Program $363,681
14.241 Housing Opportunities for Persons with Aids $327,380
14.871 Section 8 Housing Choice Vouchers $163,000
14.879 Mainstream Vouchers $24,000
14.231 Emergency Solutions Grant Program $9,754