Finding Text
Finding 2022-001 ? Assistance #14.871 ? Section 8 Housing Choice Vouchers ? Reporting (Material Weakness): Condition: A secondary review or approval of monthly and annual reporting submitted through HUD?s voucher management system was not being performed. One of the annual reports (SEMAP) had calculation errors. Criteria: Someone other than the preparer of the reports should be reviewing the submitted information. Questioned Costs: N/A Context: 3 of the 12 monthly financial reports and 62 annual performance reports were selected for review and did not contain evidence of a review or approval, and the SEMAP report was not reviewed and had calculation errors. The sample size was determined based upon guidelines provided by the AICPA which is not a statistically valid sample. Cause: The Housing Authority did not have a policy that required a secondary review or approval of the reports prior to submission to HUD. Effect: Information could be incorrectly reported or not timely reported to HUD. Recommendations: We recommend that the Housing Authority update policies and procedures to ensure that monthly and annual reports are being reviewed by someone other than the preparer, and also that copies of the submissions, along with supporting documentation, are being maintained to support the information being submitted to HUD. Views of Responsible Officials (Unaudited): Management acknowledges that secondary review of monthly and annual reports is a worthwhile internal control, and that there was a calculation error in one section of the annual SEMAP report. The Olathe Housing Authority will add secondary review of all portions of annual reporting to the Quality Control portion of the HCV procedures before the end of 2Q 2022. Secondary review of monthly reports was already adopted into the Quality Control potion of the HCV procedures in 3Q 2022. Management acknowledges that one of the monthly reports for 4Q 2022 is missing review documentation and is investigating the cause.