Finding 522398 (2019-004)

Material Weakness
Requirement
AB
Questioned Costs
-
Year
2019
Accepted
2025-02-07

AI Summary

  • Core Issue: The Authority lacks a documented Cost Allocation Plan for the Housing Choice Voucher program.
  • Impacted Requirements: Without proper documentation, cost allocations may be inaccurate, risking material misstatements.
  • Recommended Follow-Up: The Authority should finalize and adopt a compliant Cost Allocation Plan by March 31, 2020.

Finding Text

2019-004 Finding – (Housing Choice Voucher– (14.871)) During our review of cost principles and allocation of costs it was noted that the Authority does not have a documented Cost Allocation Plan . Criteria – Cost allocation plans developed by the Authority should have sufficient documentation to substantiate the basis for how costs are allocated among the different programs and related parties. Effect of Condition – Due to the lack of full documentation to substantiate the basis for cost allocation, the amounts allocated among the programs and related parties could potentially be materially misstated. Cause of Condition – Cost allocation plans were developed without fully documenting procedures and methods used in determining allocation percentages. Recommendation – We recommend that the Authority document and adopt a plan that is in accordance with Appendix IV of the 2 CFR 200 regulation. PHA Response and Corrective Action Plan – The agreement will be completed and on file as the Authority has already presented it to the board. PHA Contact and Resolution Date Rosalind Natale, March 31, 2020

Corrective Action Plan

PHA Response and Corrective Action Plan – The agreement will be completed and on file as the Authority has already presented it to the board. PHA Contact and Resolution Date Rosalind Natale, March 31, 2020

Categories

Allowable Costs / Cost Principles HUD Housing Programs

Other Findings in this Audit

  • 522396 2019-002
    Material Weakness
  • 522397 2019-003
    Material Weakness
  • 1098838 2019-002
    Material Weakness
  • 1098839 2019-003
    Material Weakness
  • 1098840 2019-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $3.82M
14.850 Public and Indian Housing $294,563
14.872 Public Housing Capital Fund $85,540
14.870 Resident Opportunity and Supportive Services $37,079