Finding 559668 (2024-002)

Finding 2024-002: Emergency Housing Vouchers Material Weakness/Noncompliance Criteria: Notice PIH 2023-014 details the statutory restriction prohibiting the reissuance of turnover EHVs after September 30, 2023, as discussed in Section 13 of the Notice PIH 2021-15. Turnover EHVs stand for vouchers made available by families ending their participation with the EHV Program. Condition: The Authority leased 4 new Emergency Housing Vouchers after the September 30, 2023 which was restricted by Notice PIH 2023-014. The Authority incurred $21,547 of HAP expense and $4,000 of service fee expenses related to this. The Authority had earned $3,058.45 of administrative fees and $4,000 of service fees related to these transactions. Cause: The restriction was brought to the attention of the Executive Director but the Executive Director instructed staff to lease the units anyway. Effect or Potential Effect: The Authority was in noncompliance with the restriction to not issue new EHV Vouchers after September 30, 2024. Adjustments were made during the audit process to account for this. The $21,547 of HAP expense and $4,000 of service fee expense were moved to the Authority’s nonfederal Business program. As a result, the HAP expense in the EHV program were reduced and those funds flowed into EHV’s net restricted position. The administrative funds and service fees earned were reduced and the related funds were added to unearned revenue. Recommendation: The Authority should review Notice PIH 2023-014 and not issue any new EHV Vouchers. View of the Responsible Officials of the Auditee: The auditee’s management agrees with the finding.