Finding 598868 (2022-003)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-09-27

AI Summary

  • Issue: One out of thirteen samples showed a control deficiency where the Authority misapplied the payment standard, leading to excess subsidy payments.
  • Requirements Impacted: This deficiency violates 24 CFR sections 982 subpart K, which mandates accurate calculation of tenant subsidy eligibility.
  • Follow-Up: Implement a review procedure for calculating and entering tenant amounts to ensure compliance and prevent future errors.

Finding Text

Condition: The control deficiency exists due to one instance out of thirteen samples in which the Authority failed to properly apply the payment standard for the unit, resulting in the total subsidy being in excess of the payment standard. Cause: The cause of the deficiency was related to the improper input of information into the system Effect: The Authority is not in compliance with 24 CFR sections 982 subpart K which requires it to calculate the maximum amount of subsidy which a tenant is eligible. Recommendation: We recommend that the Authority implement a procedure to review the calculation and entry of tenant amounts into the system.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 22426 2022-003
    Material Weakness
  • 22427 2022-004
    Material Weakness
  • 22428 2022-005
    Material Weakness
  • 22429 2022-001
    Material Weakness
  • 22430 2022-002
    Material Weakness
  • 598869 2022-004
    Material Weakness
  • 598870 2022-005
    Material Weakness
  • 598871 2022-001
    Material Weakness
  • 598872 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $727,318
10.415 Rural Rental Housing Loans $116,988
10.427 Rural Rental Assistance Payments $82,118