Finding 528262 (2024-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
$1
Year
2024
Accepted
2025-03-16

AI Summary

  • Core Issue: The Authority overreported HAP payments by $2,696 due to double counting in the Voucher Management System (VMS).
  • Impacted Requirements: Monthly reporting accuracy in VMS is required, and the Executive Director is responsible for ensuring compliance.
  • Recommended Follow-Up: The Authority should enhance its reporting procedures to prevent errors and consider the feasibility of effective controls given limited staff.

Finding Text

Finding 2024-003: Voucher Management System Reporting Housing Choice Voucher – 14.871 Material Weakness/Noncompliance – Reporting Repeat Finding 2023-006: Criteria: The Authority must report monthly in the Voucher Management System (VMS) information related to number of vouchers and the dollar amount of HAP payments made that month along with a variety of other information. The Authority should have procedures to ensure the accuracy of that information reported. Condition: During our audit, we noted the amount reported for HAP in the VMS system was higher than the amount reported on the general ledger. In reviewing the matter, we noted the Authority was including the “HAP after the first of the month” also in the “all other HAP” totals so those figures were reported twice. A similar issue occurred in the prior year with “tenant protection vouchers”. The responsibility for reporting this information is solely the responsibility of the Executive Director. The Authority indicated in the Summary Schedule of Prior Audit Findings this was corrected. Cause: The Authority did not have procedures in place to review information submitted to identify and correct errors in reporting in a timely fashion. Effect or Potential Effect: The Authority overreported HAP payments by $2,696 for the fiscal year ending June 30, 2024. Recommendation: The Authority should review its system for reporting VMS data. Based on the limited administrative staff the Authority has effective controls may not be reasonably achieved. View of the Responsible Officials of the Auditee: The auditee’s management agrees with the finding.

Corrective Action Plan

Finding 2024-003: Voucher Management System Reporting NHA Corrective Action: Due to the timing of the agency receiving the Financial Statements after the due date of the VMS, it wasn’t possible to reconcile the VMS to finial numbers, therefore some estimations were made during that time. Newton Housing Authority had the full intention of contracting the fee accounting firm to complete the reports. There were some complications with granting the firm access to our WASS system. Since the roles were removed from the Executive Director, then assigned to the board chair the task at hand complicated the process further. The board chair couldn’t assign the roles as she didn’t have the right roles for her to assign. The assignment of the roles to board chair has been completed, the fee accountant has corrected the remaining reports and is completing them as needed with someone reviewing the report including the Executive Director prior to submission.

Categories

Questioned Costs HUD Housing Programs Material Weakness Reporting

Other Findings in this Audit

  • 528260 2024-002
    Material Weakness Repeat
  • 528261 2024-002
    - Repeat
  • 528263 2024-004
    Material Weakness
  • 528264 2024-005
    Material Weakness
  • 1104702 2024-002
    Material Weakness Repeat
  • 1104703 2024-002
    - Repeat
  • 1104704 2024-003
    Material Weakness Repeat
  • 1104705 2024-004
    Material Weakness
  • 1104706 2024-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $404,759
14.850 Public and Indian Housing $351,630
14.872 Public Housing Capital Fund $163,386