Finding 560827 (2022-009)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2025-05-19
Audit: 356581
Organization: Housing Authority of Alto (TX)

AI Summary

  • Core Issue: SEMAP indicators for FY 2022 lacked adequate documentation, affecting certification accuracy.
  • Impacted Requirements: Internal controls for SEMAP certification were insufficient, leading to unverified responses.
  • Recommended Follow-Up: Implement improved documentation procedures and a checklist to ensure compliance for future SEMAP submissions.

Finding Text

SEMAP Supporting Documentation Criteria: SEMAP indicators should be supported by sufficient documentation. Condition: I noted that all indicators on FY 2022, SEMAP certification could not be verified as they were either not supported by adequate documentation or no quality control work were performed to substantiate PHA’s response. Questioned Costs: None noted. Effect: Responses on SEMAP certification may not be an accurate representation of PHA’s FY 2022 submission. Cause: Proper internal control procedures relating to SEMAP were not performed or maintained for SEMAP certification. Recommendation: I recommend that the Authority implement and perfect the procedures necessary to provide accurate and complete supporting documentation for future SEMAP certification. Management’s Response: The auditor noted that the Authority did not maintain supporting documentation for the Section Eight Management Assessment Program (SEMAP). Management has revised the SEMAP documentation process, implemented a submission checklist, and created a backup retention system to ensure compliance with HUD requirements.

Corrective Action Plan

Corrective action planned: Revised control procedures and checklist system for future SEMAP submissions with backup file requirements. Updated ADMIN plan to enforce Quality Assurance procedure, to be performed quarterly. Contact person: Candice Ivory, Executive Director / Deputy Director Anticipated completion date: May 31, 2025/ Ongoing Monitoring

Categories

HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 560826 2022-008
    Material Weakness Repeat
  • 560828 2022-010
    Material Weakness Repeat
  • 1137268 2022-008
    Material Weakness Repeat
  • 1137269 2022-009
    Material Weakness Repeat
  • 1137270 2022-010
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.03M
14.850 Public and Indian Housing $180,479
14.872 Public Housing Capital Fund $106,865