Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Program/Cluster: Section 8 Housing Choice Vouchers Cluster
Federal Assistance Listing Number: 14.871
Pass-through: N/A
Award No. and Year: CA065 - 2023
Compliance Requirement: Reporting
Type of Finding: Material Weakness in Internal Control over Compliance
Criteria:
Per 2 CFR 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. This includes internal controls over maintaining records of the preparer and approver of required reports.
Condition:
We identified three (3) instances in which the City did not retain evidence to document the individual who reviewed the Voucher Management System (VMS) reports prior to submission. The City implemented a documented review process starting with the April 2023 VMS report submission. The City did not document their review of the VMS reports prior to submission prior to April 2023.
Cause:
The City’s internal controls did not include documenting the separate management review of the VMS reports prior to submission. We noted the City implemented a change in internal controls starting with the April 2023 report whereby the reports are reviewed and approved by an employee separate from the preparer of the VMS reports prior to submission.
Effect:
Ineffective controls over this area of compliance could result in reports that are inaccurate or incomplete being submitted to the granting agency.
Questioned Costs:
No questioned costs were identified as a result of our procedures.
Context/Sampling:
The population consists of twelve (12) monthly VMS reports. The sample consisted of four (4) monthly VMS reports.
Repeat Finding from Prior Year(s):
No.
Recommendation:
We recommend that the City revise its procedures to include evidence to document the individual who reviewed required reports prior to submission.
Views of Responsible Officials:
Management concurs with the finding. See separate corrective action plan.