Finding Text
2023-001 - Internal Control over Federal Award – Reporting (VMS) – Significant Deficiency in
internal controls over compliance over reporting. ALN and Title: 14.871 Section 8 Housing Choice Vouchers
Federal Agency: US Department of Housing and Urban Development Award Year: 2023
Criteria - Per Title 2 US Code of Federal Regulations Part 200.303a, 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In addition, program reporting requires HUD-52681-B, Voucher for Payment of Annual Contributions and Operating Statement (OMB No. 2577-0169). The PHA submits this form monthly to HUD electronically via the VMS. Congress has instructed HUD to use VMS data to determine renewal funding levels. Condition - The HUD 52681-B VMS report is not reviewed prior to submission.
Cause - Because the Authority has few employees they communicate daily and therefore did not
recognize the need for review. Effect - Potential non-compliance with program requirements and that non-compliance may go
undetected for an extended period of time.
Questioned Costs - None
Perspective - The documentation of review was not retained for any of the twelve monthly reports. Recommendation - The Authority should establish a clearly documented review process wherein
someone other than the preparer reviews the VMS report prior to submission. Management Response: The Authority will have a member of management review VMS submission prior to submission. Estimated Completion Date: February, 2024 Responsible Party: Executive Director, Deputy Director and Assistant Deputy Director.