Finding Text
Finding 2024-004: Internal Control Structure
Housing Choice Voucher, 14.871
Material Weakness – Eligibility, Reporting and Special Tests and Provisions
Criteria: The Authority is responsible for establishing an effective internal control process to ensure the Authority complies with the requirements governing the Housing Choice Voucher program.
Condition: The Authority has one employee that is responsible for the Housing Choice Voucher program tenant files which include income, deduction and HAP calculations, reporting and special tests and provisions such as rent reasonableness. The Authority has not established controls such as documented supervisory reviews which could be used to detect and prevent errors or noncompliance.
Cause: The Authority has not evaluated the risks related to errors or noncompliance and established internal control procedures the would prevent and detect errors and noncompliance.
Effect or Potential Effect: The control deficiencies are deficiencies that result in more than a reasonable possibility that material noncompliance with program requirements could occur and not be prevented or detected
Recommendation: The Authority should review its procedures and establish control procedures to ensure compliance with Housing Choice Voucher rules and regulations. The control procedures should be documented.
View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.