Finding Text
Criteria: The Uniform Guidance requires HALC have proper controls in place for the purpose of preventing or detecting noncompliance related to the operation of the program. Condition: During our testing of internal controls over expenditures, HALC was unable to provide copies of invoices, payroll timesheets, or journal vouchers with proper approval for 27 of the 52 selections. During our testing of internal controls over eligibility, HALC could not provide the Housing Manager?s internal review document that is performed monthly at the time a participant has been recertified by a housing assistant staff. Further, during our testing of internal controls over the waiting list, HALC was unable to support the waiting list was pulled or examined by the Executive Director ensuring accuracy of the list order and mailing of the top of the list letters. Cause: The Authority experienced a high degree of personnel turnover from 2020 through 2022. HALC?s Executive Director who had many years of HUD experience retired during 2022 and personally performed several duties related to the Section 8 program, as well as the Authority experiencing several housing assistant staff turnovers annually. Effect: Ineffective internal controls can lead to unallowable costs being paid and ineligible participants receiving incorrect HAP payments. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend the Authority retain copies of proper approved invoices, payroll timesheets, and journal vouchers to support allowable costs related to the Housing Voucher Program expenditures. We recommend the Housing Manager retain each internal review file conducted during the year as support the Authority completed the programs required self-audit related to recertifications of participants. We further recommend the Authority document and retain managements review of the waiting list following the pull for top of the list letters. Views of Responsible Officials and Planned Corrective Action Plan: There is no disagreement with this finding.