Finding 5769 (2023-002)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-12-20

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance with the Housing Choice Voucher program.
  • Impacted Requirements: Lack of systems to track rent changes, tenant admissions, and re-inspections leads to noncompliance with HUD requirements.
  • Recommended Follow-Up: Implement a tenant management software system to ensure proper tracking of contract rents, admissions, and re-inspections.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Choice Voucher Program Federal Assistance Listing Number: 14.871 Pass-Through Agencies: Faribault and Le Sueur County Housing and Redevelopment Authorities Pass-Through Number(s): MN200VO/MN171VO Award Period: 3/1/21-3/31/23 Type of Finding: Material Weakness in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Housing Choice Voucher program requires quality control over reasonableness testing on both new leased units, selection from the waiting list, and quality control reinspections. Condition: Management does not have a system in place to track changes in rent charged by landlords from the current year to the prior year to verify the change is reasonable. There is no system in place to track historical admissions of tenants from the waiting list. There is no system in place to identify re-inspections separate from initial inspections. Therefore, a complete population was unable to be obtained in order to perform required testing of special provisions. Questioned Costs: None Context: Management does not maintain listing of contract rent changes, admissions of tenants from the waiting list, or re-inspections performed. Cause: Management did not have a tenant management computer program in place during 2023. Effect: Noncompliance with HUD requirement Repeat Finding: No Recommendation: We recommend that management implements a tenant management software system which will track the contract rents annually, admissions from the waiting list, and re-inspections performed. Views of responsible officials and planned corrective actions: Management is in agreement with the finding.

Categories

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

Other Findings in this Audit

  • 5765 2023-002
    Material Weakness
  • 5766 2023-003
    Material Weakness
  • 5767 2023-004
    Material Weakness
  • 5768 2023-005
    Material Weakness
  • 5770 2023-003
    Material Weakness
  • 5771 2023-004
    Material Weakness
  • 5772 2023-005
    Material Weakness
  • 5773 2023-001
    Significant Deficiency
  • 5774 2023-001
    Significant Deficiency
  • 5775 2023-001
    Significant Deficiency
  • 5776 2023-001
    Significant Deficiency
  • 5777 2023-006
    Significant Deficiency
  • 5778 2023-006
    Significant Deficiency
  • 5779 2023-006
    Significant Deficiency
  • 5780 2023-006
    Significant Deficiency
  • 5781 2023-001
    Significant Deficiency
  • 5782 2023-001
    Significant Deficiency
  • 5783 2023-001
    Significant Deficiency
  • 582207 2023-002
    Material Weakness
  • 582208 2023-003
    Material Weakness
  • 582209 2023-004
    Material Weakness
  • 582210 2023-005
    Material Weakness
  • 582211 2023-002
    Material Weakness
  • 582212 2023-003
    Material Weakness
  • 582213 2023-004
    Material Weakness
  • 582214 2023-005
    Material Weakness
  • 582215 2023-001
    Significant Deficiency
  • 582216 2023-001
    Significant Deficiency
  • 582217 2023-001
    Significant Deficiency
  • 582218 2023-001
    Significant Deficiency
  • 582219 2023-006
    Significant Deficiency
  • 582220 2023-006
    Significant Deficiency
  • 582221 2023-006
    Significant Deficiency
  • 582222 2023-006
    Significant Deficiency
  • 582223 2023-001
    Significant Deficiency
  • 582224 2023-001
    Significant Deficiency
  • 582225 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $586,527
93.568 Low-Income Home Energy Assistance $502,969
21.027 Coronavirus State and Local Fiscal Recovery Funds $486,094
93.600 Head Start $447,410
93.569 Community Services Block Grant $348,163
17.258 Wia Adult Program $308,373
81.042 Weatherization Assistance for Low-Income Persons $300,495
17.235 Senior Community Service Employment Program $246,897
10.558 Child and Adult Care Food Program $182,969
17.278 Wia Dislocated Worker Formula Grants $98,944
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $65,963
14.267 Continuum of Care Program $59,151
17.259 Wia Youth Activities $30,697
93.558 Temporary Assistance for Needy Families $29,472
17.277 Workforce Investment Act (wia) National Emergency Grants $13,647
17.285 Apprenticeship USA Grants $7,316
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $5,902
10.551 Supplemental Nutrition Assistance Program $2,832