Finding 577623 (2023-006)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-11-03
Audit: 2251
Organization: City of Scottsdale, Arizona (AZ)

AI Summary

  • Core Issue: The City’s internal controls failed to ensure accurate reporting of Housing Assistance Payments (HAP) and administrative fee equity balances.
  • Impacted Requirements: Compliance with 24 CFR §982.158, which mandates complete and accurate accounting for public housing agencies.
  • Recommended Follow-Up: Allocate resources for training and resolving reporting discrepancies in the Community Assistance Office to improve accuracy.

Finding Text

Finding Number: 2023‐006 Repeat Finding: No Program Name/Assistance Listing Title: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Agency: U.S. Department of Housing and Urban Development Federal Award Number: AZ032VO Pass‐Through Agency: N/A Questioned Costs: $0 Type of Finding: Significant Deficiency Compliance Requirement: Special Tests and Provisions Criteria 24 CFR §982.158 requires public housing agencies to maintain complete and accurate accounts including the balances of HAP and administrative fee equity. Condition The City’s internal controls were not functioning to ensure equity balances were properly stated throughout the fiscal year. Cause The Community Assistance Office experienced turnover and vacancies in key positions responsible for reporting during fiscal year 2020‐21. Training was needed for program employees to fully understand reporting responsibilities for the City. In some cases information was not retained and required recreation. Effect The City’s HAP and administrative equity balances were not always properly stated. Context The City was not regularly reconciling HAP and administrative equity balances throughout the current and prior fiscal years. Record reviews were required back to fiscal year 2020‐21 and reconciled moving forward through the end of fiscal year 2022‐23 to ensure the program equity records were complete and accurate. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The City should dedicate time and resources to allow individuals to resolve discrepancies in reporting within the Community Assistance Office. Views of Responsible Officials See Corrective Action Plan.

Categories

Special Tests & Provisions HUD Housing Programs Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1176 2023-001
    Significant Deficiency
  • 1177 2023-002
    Significant Deficiency
  • 1178 2023-003
    Significant Deficiency
  • 1179 2023-004
    Significant Deficiency
  • 1180 2023-005
    Significant Deficiency
  • 1181 2023-006
    Significant Deficiency
  • 1182 2023-001
    Significant Deficiency
  • 577618 2023-001
    Significant Deficiency
  • 577619 2023-002
    Significant Deficiency
  • 577620 2023-003
    Significant Deficiency
  • 577621 2023-004
    Significant Deficiency
  • 577622 2023-005
    Significant Deficiency
  • 577624 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $14.62M
14.871 Section 8 Housing Choice Vouchers $6.73M
20.106 Airport Improvement Program $3.95M
14.218 Community Development Block Grants/entitlement Grants $1.21M
21.016 Equitable Sharing $1.07M
20.507 Covid-19 - Federal Transit_formula Grants $775,517
15.514 Reclamation States Emergency Drought Relief $649,042
20.205 Highway Planning and Construction $634,972
97.044 Assistance to Firefighters Grant $570,231
14.218 Covid-19 - Community Development Block Grants/entitlement Grants $478,888
21.023 Covid-19 - Emergency Rental Assistance Program $379,317
20.507 Federal Transit_formula Grants $211,160
16.741 Dna Backlog Reduction Program $205,961
10.697 State & Private Forestry Hazardous Fuel Reduction Program $150,615
14.896 Family Self-Sufficiency Program $86,597
97.106 Securing the Cities Program $73,847
93.568 Low-Income Home Energy Assistance $73,376
97.083 Staffing for Adequate Fire and Emergency Response (safer) $49,050
20.600 State and Community Highway Safety $47,931
93.569 Community Services Block Grant $25,000
10.665 Schools and Roads - Grants to States $20,000
97.067 Homeland Security Grant Program $9,703
20.616 National Priority Safety Programs $8,000
45.310 Covid-19 - Grants to States $4,774
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $4,467
45.310 Grants to States $4,000
14.239 Home Investment Partnerships Program $1,345
16.738 Edward Byrne Memorial Justice Assistance Grant Program $64