Finding 611542 (2022-004)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2022-12-27

AI Summary

  • Core Issue: The Authority lacks proper documentation and organization for SEMAP scores, failing to meet HUD's sampling requirements.
  • Impacted Requirements: Non-compliance with 24 CFR 985 could lead to inaccurate performance ratings and ineffective oversight of the Housing Choice Voucher program.
  • Recommended Follow-up: Assign SEMAP responsibilities, provide training, maintain organized documentation, and conduct regular SEMAP testing to improve program performance.

Finding Text

(?SEMAP?), it was noted that the Authority lacked the proper documentation and organization to support the self-assessed score that was reported for each indicator, regarding the minimum sample size and the sampling methodology from the correct universe in an unbiased manner. Criteria: 24 CFR 985 requires that the Authority annually submit a SEMAP certification that follows HUD requirements. According to 24 CFR 985.1, SEMAP is designed to determine whether the Section 8 tenant-based assistance programs operate to help eligible families afford decent rental units at the correct subsidy cost. SEMAP provides procedures for HUD to identify PHA management capabilities and deficiencies in order to target monitoring and program assistance more effectively. 24 CFR 985.2 identifies the required minimum sample size for each sub-indicator and requires that the sample is selected in an unbiased manner. Context: The auditor obtained support for the SEMAP submission to test the adequacy of the responses for each indicator. The supporting documentation did not include the correct sample size for several indicators nor did it correctly utilize the information that comes from the Public and Indian Housing Information Center (?PIC?). Cause: Lack of proper oversight and staff training contributed to SEMAP being improperly performed. Effect: The program?s quality control is not being utilized in the most effective manner. The Authority may not be in full compliance with applicable HUD regulations and could receive an inaccurate overall performance rating. Without proper completion of the SEMAP submission, HUD is not able to accurately perform their oversight of the Housing Choice Voucher program. Questioned Costs: None. Auditor Recommendations: The Authority should assign SEMAP responsibilities to a responsible person and provide sufficient training to complete an accurate and complete certification with supporting documentation that meets the requirements of the HUD rules and regulations. The Authority needs to provide the appropriate documentation and support for testing for each of the SEMAP indicators. The Authority should also develop a system to maintain the organization of this documentation which should clearly support the self-assessed scores reported on SEMAP. We recommend SEMAP testing be performed throughout the year and that the Authority use the SEMAP performance analysis to assess and improve their own program operations and performance. Management Response: See Corrective Action Plan.

Categories

HUD Housing Programs Subrecipient Monitoring

Other Findings in this Audit

  • 35100 2022-004
    Material Weakness
  • 35101 2022-005
    Material Weakness
  • 35102 2022-004
    Material Weakness
  • 35103 2022-005
    Material Weakness
  • 35104 2022-002
    Material Weakness
  • 35105 2022-003
    Material Weakness
  • 35106 2022-005
    Material Weakness
  • 35107 2022-002
    Material Weakness
  • 35108 2022-003
    Material Weakness
  • 35109 2022-005
    Material Weakness
  • 611543 2022-005
    Material Weakness
  • 611544 2022-004
    Material Weakness
  • 611545 2022-005
    Material Weakness
  • 611546 2022-002
    Material Weakness
  • 611547 2022-003
    Material Weakness
  • 611548 2022-005
    Material Weakness
  • 611549 2022-002
    Material Weakness
  • 611550 2022-003
    Material Weakness
  • 611551 2022-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $3.66M
14.850 Public and Indian Housing $440,778
14.871 Covid-19 Section 8 Housing Choice Vouchers $91,403
14.850 Covid-19 Public and Indian Housing $20,209