Core Issue: Missing signatures on documents submitted to HUD indicate a lack of proper internal controls for vacant unit reporting.
Impacted Requirements: The Corporation failed to meet the necessary control procedures for tenant HAP reimbursement requests and vacancy data.
Recommended Follow-Up: Review and strengthen the quality control process for reimbursement requests and vacant unit reporting to ensure compliance.
Finding Text
Special Tests and Provisions: Vacant Units – Significant Deficiency
Federal Program
Project Based Rental Assistance 14.195
Grant Award No.
MN460010054
Federal Award Year
2024
Criteria
Perform procedures to obtain an understanding of internal control sufficient to plan the audit to
support a low assessed level of control risk for the vacant unit requirements.
Condition
During our review of the documents sent to HUD monthly, it was noted that no signature was
included on the document to signify who performed the procedures. The Corporations control
procedures note this as a control process. This document contained tenant HAP reimbursement
request information as well as vacant unit information.
Context
We reviewed 2 months of documents submitted to HUD for tenant HAP reimbursements and
vacancy data for proper control procedures.
Questioned Costs
N/A
Effect
The Corporation may be providing incorrect information to HUD for reimbursements.
Cause
The Corporation noted a change in employees performing the tasks as well as oversight errors.
Repeat Finding
This is not a repeat finding.
Recommendation
We recommend the Corporation review its quality control process over reimbursement requests
and vacant unit reporting to HUD.
Views of Responsible Officials
The Corporation is aware of the issue and has taken subsequent steps to ensure internal
procedures are followed as established.
Corrective Action Plan
Contact Person
Dara Lee, Executive Director of Clay County HRA (Authorized Representative and Agent)
Corrective Action Plan
The Corporation is aware of the issue and has taken subsequent steps to ensure internal
procedures are followed as established.
Planned Completed Date for CAP
Immediately
Categories
Internal Control / Segregation of DutiesSpecial Tests & ProvisionsCash ManagementHUD Housing ProgramsReportingSignificant Deficiency