Finding 6940 (2023-002)

ALN#14.871 Reporting: Noncompliance and Significant Deficiency in Internal Controls over SEMAP submission CONDITION: During the audit for the year ending March 31, 2023, it was discovered that the Authority had not submitted the SEMAP certification within 60 days of the end of the fiscal year. CRITERIA: The Uniform Financial Reporting Standards (UFRS), at 24 CFR 985.101, require Authorities to submit SEMAP certification form with 60 calendar days after the end of its fiscal year. QUESTIONED COSTS: None. CONTEXT: The SEMAP was not certified within the required time frame during the audit period. EFFECT: As a result of this noncompliance, the PHA could receive an overall performance rating of “troubled” which means the PHA will be subject to the requirements of CFR 985.107 “Required actions for PHA with troubled performance rating.” This may include: on-site reviews by HUD with written reports to follow, a corrective action plan to address any issues that HUD identified, monitoring of the corrective action plan, prohibition of use of administrative fees, and upgrading the poor performance rating via HUDs determination that a change in the rating is warranted. CAUSE: The overall cause was a lack of effective management oversight and quality control over this program. RECOMMENDATION: The Housing Authority should implement greater oversight over Housing Choice Voucher and train employees on procedures mandated by HUD regarding SEMAP completion and certification.