Finding 572971 (2024-002)

U.S. Department of Housing and Urban Development Section 8 Housing Choice Vouchers 14.871 – IA125V08001 for FY24 Housing Voucher Cluster Reporting Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria – Per 2 CFR 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. This includes internal controls over maintaining records of the preparer and approver of required reports. Condition – We identified three (3) instances in which the City did not use accurate financial information or retain evidence to document the individual who reviewed the Voucher Management System (VMS) reports prior to submission. Cause – The City’s internal controls did not include separate management review of the VMS reports prior to submission. Effect – Ineffective controls over this area of compliance could result in reports that are inaccurate or incomplete being submitted to the granting agency. Questioned Costs – None reported. Context – The population consists of twelve (12) monthly VMS reports. The sample consisted of three (3) monthly VMS reports. Repeat Finding From Prior Years – No. Recommendation – We recommend that the City revise its procedures to include evidence to document the individual who reviewed required reports prior to submission. Views of Responsible Officials – We agree with the auditor’s recommendation.