Finding 578765 (2022-003)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-11-21

AI Summary

  • Core Issue: Lack of oversight in monitoring staff performance related to HUD compliance duties.
  • Impacted Requirements: Internal controls for timely prevention and detection of non-compliance with HUD regulations are missing.
  • Recommended Follow-Up: Implement additional controls to ensure management is promptly alerted to any non-performance of job duties.

Finding Text

Finding 2022-003 - Supportive Housing for Person with Disabilities – Assistance Listing Number 14.181 Condition: A general lack of oversight of the position that is responsible for duties that are significantly related to maintaining compliance with HUD requirements exists. This is indicative of missing control(s). Additional controls should be implemented that would allow for Management to be alerted more timely to non-performance of job duties, especially as it relates to HUD compliance requirements. Criteria: Lokahi Pacific and Affiliates must implement internal controls that provide for timely prevention, detection and correction over compliance. Context and Cause of Condition: There is currently no process implemented to monitor the performance of significant processes being performed by staff. Potential Effect: Continued noncompliance with HUD requirements and the potential that future HUD support could be discontinued. Questioned Costs: None Recommendation: Additional controls should be implemented that would allow for Management to be alerted more timely to non-performance of job duties, especially as it relates to HUD compliance requirements. Views of Responsible Officials: From early 2020 through early 2022, conditions brought about as a direct result of the COVID-19 pandemic severely disrupted normal operations. Attendance and performance of key personnel was impacted and resulted in a failure to complete normal processes and procedures to ensure compliance. See Planned Corrective Action Plan.

Categories

Internal Control / Segregation of Duties HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $3.48M
10.767 Intermediary Relending Program $735,284
14.195 Section 8 Housing Assistance Payments Program $528,086
10.766 Community Facilities Loans and Grants $304,788
14.157 Supportive Housing for the Elderly $142,291