Finding 5701 (2023-002)

Significant Deficiency
Requirement
EN
Questioned Costs
-
Year
2023
Accepted
2023-12-20
Audit: 7699
Auditor: Rbt CPAS

AI Summary

  • Core Issue: The Authority lacks proper documentation for controls over key areas like Eligibility and Rent, risking potential noncompliance.
  • Impacted Requirements: Compliance with federal laws and grant agreements is at stake due to inadequate internal controls.
  • Recommended Follow-Up: Implement a checklist for Tenant Housing Representatives to ensure all compliance steps are documented and maintained in tenant files.

Finding Text

B. Findings and Questioned Costs for Federal Awards 2023-002 – Documentation of Controls U.S. Department of Housing and Urban Development 14.871 – Section 8 Housing Choice Vouchers Condition: During review of the Housing Choice Voucher program, RBT noted that the Authority was not appropriately maintaining documentation of the controls over Eligibility, Reasonable Rent, Utility Allowance, and HQS Inspections. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority does not have a central, uniform location to document the controls in place over Eligibility, Reasonable Rent, Utility Allowance, and HQS Inspections. Effect: Potential noncompliance if a control is missed. Questioned Costs: None identified. Perspective: This is a systemic issue. Repeat Finding: Not a repeat finding. Recommendation: We recommend that the Authority establish a checklist for the Tenant Housing Representatives to use during the recertification process to ensure all compliance requirements are met. The checklist should be signed or initialed by the representative and maintained in the tenant’s file. This checklist will serve as documentation that all compliance requirements were verified for the tenant. Auditee’s Response: See corrective action plan.

Corrective Action Plan

Corrective Action Plan Finding 2023-002 – Documentation of Controls Auditee’s Response and Planned Corrective Action The Authority will use a checklist for each recertification to ensure all compliance requirements are met and maintain a copy in the tenant’s file. Planned Implementation Date of Corrective Action: December 2023 Person Responsible for Corrective Action: Betty Mermelstein, Executive Director Village of New Square Housing Authority

Categories

HUD Housing Programs Eligibility Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 582143 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $11.54M