Finding 622967 (2022-002)

Material Weakness
Requirement
EN
Questioned Costs
-
Year
2022
Accepted
2023-06-29

AI Summary

  • Core Issue: Tenant files for the Housing Choice Voucher Program are materially incomplete, leading to non-compliance with federal regulations.
  • Impacted Requirements: Compliance with 24 CFR Section 982.1 and internal control systems under the Uniform Guidance are not being met.
  • Recommended Follow-Up: Implement stronger internal control procedures and complete staff training to ensure compliance with federal requirements.

Finding Text

Finding 2022-2 Housing Choice Voucher Program (CFDA#14.871) Material Non-Compliance Material Weakness in Internal Control over Compliance Tenant files for the Housing Choice Voucher Program are materially incomplete. Criteria Entities receiving Federal Funds under the Uniform Guidance are required to comply with certain conditions of the grant agreement and are required to have in place an internal control system that reasonably assures compliance with the requirement for Federal Awards such as Housing Choice Vouchers under 24 CFR Section 982.1. Cause During inspection of twelve Housing Choice Voucher program files, we noted the following exceptions. ? Two files were not recertified. ? One file did not include documentation for EIV. ? Three files HAP payment did not agree to the HAP register. ? Two files did not include HUD Form 9886 Effect of Condition The Authority is not in compliance with certain regulations regarding the Housing Choice Voucher Program under 24 CFR Section 982.1. Recommendation We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with 2 CFR-200. Questioned Costs: $0 Response The following steps have been and are being taken regarding tenant certifications: 1. After contracting a third-party entity to review 10% of our files in Oct 2022, the findings of said review led to the recommendation to retrain staff. 2. All Managers and assistant Managers received HCV & PH Rent Calculation Training In June 2023. 3. We are also currently working with our TA from HUD, Ms. Valerie Jackson. Ms. Jackson has identified and is about to roll out training for our staff, to uniform and streamline our tenant files.

Categories

HUD Housing Programs Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 46524 2022-001
    Material Weakness Repeat
  • 46525 2022-002
    Material Weakness
  • 622966 2022-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $7.40M
14.871 Section 8 Housing Choice Vouchers $4.78M
14.872 Public Housing Capital Fund $3.97M
14.269 Hurricane Sandy Community Development Block Grant Disaster Recovery Grants (cdbg-Dr) $3.53M
14.U01 Public Housing Cares Act Funding $469,571
14.218 Community Development Block Grants/entitlement Grants $96,656
14.U02 Housing Choice Voucher Cares Act Funding $64,621