Finding 52317 (2022-004)

Significant Deficiency
Requirement
BN
Questioned Costs
$1
Year
2022
Accepted
2023-07-12

AI Summary

  • Core Issue: An error led to an overpayment of Housing Assistance Payments (HAP) due to incorrect date entry.
  • Impacted Requirements: Compliance with 24 CFR Section 982.158, which mandates that HAP payments align with contracts and registers.
  • Recommended Follow-Up: Management should enhance monitoring processes and consider additional training for housing specialists to prevent future errors.

Finding Text

2022-004 Housing Assistance Payments Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA ? WI 186; WHEDA ? WI 901 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Allowable Costs, Special Tests ? Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater Criteria or Specific Requirement: Per 24 CFR Section 982.158, the HAP payment must agree to the HAP contract and HAP register. Condition: During our testing, we noted that the Organization overpaid HAP for one file for part of 2022 due human error in entering a 01/01/2023 HAP increase as of 01/01/2022. The system issued an additional check in 2022 and the Organization was unable to recoup the entire amount. Questioned Costs: $98 Context: From a sample of 40 program participant files selected for testing, 1 tenant had the above issue where HAP was overpaid due to entering the wrong date for an increase. Cause: The Housing Specialist made an error in entering the date of a HAP increase. Effect: One program participant received an overpayment of HAP. Repeat Finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate HAP is paid and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of Responsible Officials: There is no disagreement with the audit finding. Refer to the Organization?s Corrective Action Plan for more information.

Corrective Action Plan

Housing Assistance Payments Allowable Costs, Special Tests ? Housing Assistance Payments ? Housing Choice Vouchers ? CFDA No. 14.871 Recommendation: ICS should review their current processes and create an internal monitoring system to ensure appropriate HAP is paid and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: ICS will conduct internal training regarding the calculation of HAP. ICS will review files to assure that calculations are being done correctly. Names of the contact persons responsible for corrective action: Matt Roberts and Megan Walker Planned completion date for corrective action plan: Immediately

Categories

Questioned Costs HUD Housing Programs Subrecipient Monitoring Allowable Costs / Cost Principles Significant Deficiency Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 52314 2022-001
    Significant Deficiency
  • 52315 2022-002
    Significant Deficiency Repeat
  • 52316 2022-003
    Significant Deficiency
  • 52318 2022-005
    Material Weakness Repeat
  • 52319 2022-001
    Significant Deficiency
  • 52320 2022-002
    Significant Deficiency Repeat
  • 52321 2022-003
    Significant Deficiency
  • 52322 2022-004
    Significant Deficiency
  • 52323 2022-005
    Material Weakness Repeat
  • 52324 2022-001
    Significant Deficiency
  • 52325 2022-002
    Significant Deficiency Repeat
  • 52326 2022-003
    Significant Deficiency
  • 52327 2022-004
    Significant Deficiency
  • 52328 2022-005
    Material Weakness Repeat
  • 52329 2022-001
    Significant Deficiency
  • 52330 2022-002
    Significant Deficiency Repeat
  • 52331 2022-003
    Significant Deficiency
  • 52332 2022-004
    Significant Deficiency
  • 52333 2022-005
    Material Weakness Repeat
  • 52334 2022-001
    Significant Deficiency
  • 52335 2022-002
    Significant Deficiency Repeat
  • 52336 2022-003
    Significant Deficiency
  • 52337 2022-004
    Significant Deficiency
  • 52338 2022-005
    Material Weakness Repeat
  • 52339 2022-001
    Significant Deficiency
  • 52340 2022-002
    Significant Deficiency Repeat
  • 52341 2022-003
    Significant Deficiency
  • 52342 2022-004
    Significant Deficiency
  • 52343 2022-005
    Material Weakness Repeat
  • 52344 2022-001
    Significant Deficiency
  • 52345 2022-002
    Significant Deficiency Repeat
  • 52346 2022-003
    Significant Deficiency
  • 52347 2022-004
    Significant Deficiency
  • 52348 2022-005
    Material Weakness Repeat
  • 628756 2022-001
    Significant Deficiency
  • 628757 2022-002
    Significant Deficiency Repeat
  • 628758 2022-003
    Significant Deficiency
  • 628759 2022-004
    Significant Deficiency
  • 628760 2022-005
    Material Weakness Repeat
  • 628761 2022-001
    Significant Deficiency
  • 628762 2022-002
    Significant Deficiency Repeat
  • 628763 2022-003
    Significant Deficiency
  • 628764 2022-004
    Significant Deficiency
  • 628765 2022-005
    Material Weakness Repeat
  • 628766 2022-001
    Significant Deficiency
  • 628767 2022-002
    Significant Deficiency Repeat
  • 628768 2022-003
    Significant Deficiency
  • 628769 2022-004
    Significant Deficiency
  • 628770 2022-005
    Material Weakness Repeat
  • 628771 2022-001
    Significant Deficiency
  • 628772 2022-002
    Significant Deficiency Repeat
  • 628773 2022-003
    Significant Deficiency
  • 628774 2022-004
    Significant Deficiency
  • 628775 2022-005
    Material Weakness Repeat
  • 628776 2022-001
    Significant Deficiency
  • 628777 2022-002
    Significant Deficiency Repeat
  • 628778 2022-003
    Significant Deficiency
  • 628779 2022-004
    Significant Deficiency
  • 628780 2022-005
    Material Weakness Repeat
  • 628781 2022-001
    Significant Deficiency
  • 628782 2022-002
    Significant Deficiency Repeat
  • 628783 2022-003
    Significant Deficiency
  • 628784 2022-004
    Significant Deficiency
  • 628785 2022-005
    Material Weakness Repeat
  • 628786 2022-001
    Significant Deficiency
  • 628787 2022-002
    Significant Deficiency Repeat
  • 628788 2022-003
    Significant Deficiency
  • 628789 2022-004
    Significant Deficiency
  • 628790 2022-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $229,974
14.896 Family Self-Sufficiency Program $117,281