Finding Text
2022-002 Noncompliance with Special Tests and Provisions ? Rolling forward equity balances (Other Non-Compliance) Federal Program Information: Questioned Costs: Finding Agency: Department of Housing and Urban Development None Program Title: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Compliance Requirement: Special Tests and Provisions Condition ? The equity balances for Section 8 Housing Choice Vouchers were not properly maintained between Administrative Fee Equity and HAP Equity. Criteria ? The ACC requires PHA to properly account for program activity ? records and accounting transactions support a proper roll-forward of equity. Cause ? Confusion caused by the absorbtion of Tucumcari HA Section 8 program that included balances later determined to be administrative fee equity per discussion with HUD. PHA was accustomed to expending all administrative fees and therefore incorrectly assumed the same for the year of absorbtion of Tucumcari Section 8 Housing. Effect ? Potential that PHA is not funded correctly. Recommendation ? The PHA should correct the account balances. Management Response ? The staff shall correct the account balances, specifically in the HUD FDS and VMS records. Estimated Completion Date: March 31, 2023 Responsible Party: Deputy Director