Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Voucher Cluster
Assistance Listing Numbers: 14.871/14.879
Federal Award Identification Number and Year: SC911VO - 2023
Award Period: July 1, 2022 – June 30, 2023
Compliance Requirement: Special Tests and Provisions - Rolling Forward Equity Balances
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or specific requirement: PHAs are required to maintain complete and accurate accounts. In addition, the ACC requires PHA to properly account for program activity. Proper accounting requires that (1) account balances are properly maintained, (2) records and accounting transactions support a proper roll-forward of equity, and (3) errors are corrected as detected (24 CFR section 982.158).
Condition: The Authority did not properly reconcile HAP and administrative equity in the prior fiscal year and processed a prior period adjustment to transfer the erroneous equity out of the program during the current fiscal year.
Questioned costs: Known questioned costs of $209,512 calculated based on the program prior period adjustment.
Context: The equity roll forward identified the program’s equity included an erroneous transfer in the prior year and required a prior period adjustment to correct.
Cause: The Authority did not accurately reconcile program equity.
Effect: The Authority is not in compliance with Housing Choice Voucher equity roll forward requirements.
Repeat Finding: Yes, see finding 2023-010.
Recommendation: We recommend the Authority review the equity roll forward of programs to identify and correct errors in the correct reporting period.
Views of responsible officials: There is no disagreement with the audit finding.