Finding Text
2022-006 ? SPECIAL TESTS AND PROVISIONS ? OPERATING TRANSFERS & ADMINISTRATIVE FEES Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.871 / 14.879 ? Housing Voucher Cluster CRITERIA The ACC establishes the amounts HUD will provide a PHA for HAP and administrative fees. With the exception of Moving to Work Housing Authorities, HAP may not be used to cover administrative expenses nor may HAP (including RNP) be loaned, advanced, or transferred to other component units or other programs such as Public and Indian Housing (Assistance Listing 14.850) (24 CFR sections 982.151 and 982.152). CONDITION The Authority?s inter-program accounts did not properly net to zero and were out of balance by $5,105,852 with the corresponding variance classified as cash. CAUSE Due to a software issue, the Authority?s inter-program accounts were out of balance and not properly reconciled. EFFECT As a result of the missing control related to the timely reconciliation of inter-program accounts, HCV administrative fee funding could have been loaned, advanced, or transferred to other programs. QUESTIONED COSTS None Identified. CONTEXT The has two bank accounts for which regular payments are made from (one for landlord payments and the other for operating expenses). Expenses are allocated to the programs through the use of inter-program accounts. REPEAT FINDING Not a repeat finding. RECOMMENDATION The Authority should work with the software provider to correct this issue and verify that the federal programs funding was not used for other programs. AUDITEE?S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.