Finding 570615 (2024-001)

Finding 2024-1 Federal Agency: Department of Housing and Urban Development (HUD) Programs effected: Low-Income Housing Program (CFDA #14.850) Section 8 Housing Choice Vouchers (CFDA #14.871) Questioned Costs: $106,589 Criteria: HUD program funds cannot be used to support or supplement another program. Condition: The Authority has inter-program payable and receivable in excess of $100,000 at year end between the two affected activities as shown of the attached FDS (Lines 144 and 347). Amounts in the current year are more than double those at the prior year end. Internal control to detect the non-compliance issue has not been. Effect: The Authority is not in compliance with the HUD requirements for the operations of the voucher and public housing programs. Cause: The Authority hired an additional staff member for its Voucher program but suffered declines in the number of vouchers issued and the associated administrative fee earned from such. Additionally, the amount of HAP remitted from HUD on a monthly basis has been below the proper level. To make up for this shortfall, the Authority utilized administrative funds for HAP. Recommendation: The Authority should address staffing levels for the Voucher program and increase voucher issuance if possible. We also suggest that a request be made to HUD for additional administrative funding. Internal control procedures should be established to detect any excess charges to either HCV or public housing and reflect immediate payment of allocated expenses. Corrective Action Plan: The Housing Authority has addressed the staffing levels for the program and is working with HUD to secure reimbursements for under funded HAP remittances. Additionally, the Authority is working with HUD to utilize reserve funds to alleviate the issue. Prior year findings: Finding 2023-1 is listed above as 2024-1.