Finding 608687 (2022-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2022-10-20

AI Summary

  • Core Issue: Missing signed housing application for one tenant in the Rental and Cooperative Housing program.
  • Impacted Requirements: Internal controls must ensure compliance with the housing application documentation as per HUD guidelines.
  • Recommended Follow-Up: Implement a control system to ensure all required tenant documents are collected and properly filed.

Finding Text

2022-001 ? US Department of Housing and Urban Development ? Rental and Cooperative Housing for Lower Income Families (14.103) Criteria: An appropriate system of internal controls requires that Minot Vocational Adjustment Workshop, Inc., DBA: Kalix comply with the requirements of the Rental and Cooperative Housing for Lower Income Families compliance supplement and maintain a completed and signed housing application for each tenant. Condition/Context: During our single audit testing of AL 14.103, Rental and Cooperative Housing for Lower Income Families, it was noted there was not a copy of a tenant?s signed and completed housing application in one of the eight tenant files tested. Cause: The Organization?s internal controls have not been designed to monitor its compliance with this requirement of the Rental and Cooperative Housing for Lower Income Families compliance supplement. Questioned Costs: There were no questioned costs associated with this finding. Effect: The Organization did not retain a copy of the tenant?s signed and completed housing application and failed to detect they were not in compliance with this requirement of the Rental and Cooperative Housing for Lower Income Families program. Recommendation: We recommend establishing a control to ensure that all required documents are obtained and filed accordingly. Views of Responsible Officials and Planned Corrective Actions: We agree with this finding. See corrective action plan item 2022-001. Indication of repeat finding: This is not a repeat finding.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 32245 2022-001
    Significant Deficiency
  • 32246 2022-002
    Significant Deficiency
  • 608688 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.103 Interest Reduction Payments_rental and Cooperative Housing for Lower Income Families $1.69M
10.415 Rural Rental Housing Loans $679,655
14.317 Section 8 Housing Assistance Payments Program Special Allocations (recovery Act Funded) $228,650
93.498 Provider Relief Funds $94,645
10.427 Rural Rental Assistance Payments $39,047
93.791 Money Follows the Person Rebalancing (qsp Expansion Grant) $10,511