Finding 522453 (2021-003)

Significant Deficiency
Requirement
EN
Questioned Costs
-
Year
2021
Accepted
2025-02-08
Audit: 341730
Organization: Monticello Housing Authority (NY)
Auditor: Rbt CPAS LLP

AI Summary

  • Core Issue: The Authority lacks proper documentation for controls over Eligibility, Reasonable Rent, Utility Allowance, and HQS Inspections in the Housing Choice Voucher program.
  • Impacted Requirements: Failure to document controls may lead to potential noncompliance with federal regulations and grant agreements.
  • Recommended Follow-Up: Implement a checklist for the Housing Choice Voucher Coordinator to document compliance procedures during recertification, ensuring it is signed and filed with tenant records.

Finding Text

2021-003 – Documentation of Controls U.S. Department of Housing and Urban Development 14.871 – Section 8 Housing Choice Vouchers/Housing Voucher Cluster E. Eligibility and N. Special Tests and Provisions – Significant Deficiency Condition: During review of the Housing Choice Voucher program, RBT noted that the Authority was not appropriately documenting its controls over Eligibility, Reasonable Rent, Utility Allowance, and HQS Inspections. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority does not have a central, uniform location to document the controls in place over Eligibility, Reasonable Rent, Utility Allowance, and HQS Inspections. Effect: Potential noncompliance if a control is missed. Questioned Costs: None identified. Perspective: Although the Authority was in compliance with the noted compliance attributes, none of the 25 tenant files selected for testing contained documentation of the internal controls performed. Repeat Finding: Not a repeat finding. Recommendation: We recommend that the Authority establish a checklist for the Housing Choice Voucher Coordinator to use during the recertification process to document the procedures performed to ensure all compliance requirements are met. The checklist should be signed or initialed by the Coordinator and maintained in the tenant’s file. This checklist will serve as documentation that all compliance requirements were verified for the tenant. Auditee’s Response: See corrective action plan.

Corrective Action Plan

The Board of Commissioners has recently hired an Executive Director (ED) who will actively oversee all financial aspects of the agency. Additionally, it is the intent of the ED to hire a CPA as fee accountant, as soon as financially feasible, to keep finances current and accurate monthly. With the added assistance of the existing bookkeeper, all financial systems should be operable and accurate going forward. Planned Implementation Date of Corrective Action: December 31, 2024 Person Responsible for Corrective Action: Pat Croslan, Executive Director

Categories

HUD Housing Programs Eligibility Significant Deficiency Special Tests & Provisions Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1098895 2021-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $3.23M
14.850 Public Housing Operating Fund $402,565
14.872 Public Housing Capital Fund $195,697
14.870 Resident Opportunity and Supportive Services - Service Coordinators $42,261