Finding 5772 (2023-005)

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

AI Summary

  • Core Issue: There is a material weakness in internal controls regarding tenant admissions to the Housing Choice Voucher Program.
  • Impacted Requirements: The program requires proper documentation for new tenant admissions, including signed Housing Assistance Payment contracts.
  • Recommended Follow-Up: Management should ensure all documentation for new tenant admissions is retained and organized to comply with HUD requirements.

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 documentation of admission of new tenants from the waiting list and signed Housing Assistance Payment (HAP) contract. Condition: Management did not retain applicable documentation of a new tenant being admitted to the program or retain documentation supporting admission to the program in proper order. Questioned Costs: None Context: During testing, one of five new tenants selected did not have signed HAP contract or other documentation retained. We were unable to verify tenants were admitted to the program in the proper order. Cause: Documentation was misplaced and unable to be located. Effect: Improper admission from the waiting list could result in noncompliance with the Organization’s Administrative Plan and HUD requirements. Repeat Finding: No Recommendation: We recommend that management retains all documentation related to new tenants being admitted to program. 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

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
  • 5769 2023-002
    Material Weakness
  • 5770 2023-003
    Material Weakness
  • 5771 2023-004
    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