Finding 970229 (2021-004)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2021
Accepted
2024-04-19
Audit: 303983
Auditor: Eide Bailly

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance, specifically in determining participant eligibility.
  • Impacted Requirements: The program mandates annual and interim reviews of participant information, which were not properly conducted.
  • Recommended Follow-Up: Implement stronger controls and ensure that tenant eligibility calculations are reviewed by a second individual.

Finding Text

U.S. Department of Housing and Urban Development ‐ CFDA #14.850 Public and Indian Housing Applicable Federal Award Number and Year – Public and Indian Housing ‐ 2021 Eligibility Material Weakness in Internal Control over Compliance Criteria – The Program requires the Authority to determine eligibility of participants of the program through annual and interim review of participant information. Condition – During our testing, we identified an error in the tenant rent calculation for 1 individual that was not detected by the Authority’s internal controls. In addition, there was no review of any of the rent calculations by another individual. Questioned Costs – None Reported. Context/Sampling – A non‐statistical sample of 60 participants were selected for testing. 1 out of the 60 tenant files had an incorrect rent calculation. Effect – Failure to implement and maintain a proper control process could result in incorrect calculations of income, which could cause errors in eligibility determinations. Cause – The Authority has experienced significant staff turnover and the Authority’s controls are currently not adequately designed and operating. Repeat Finding from Prior Year – Yes. Recommendation – The Authority should implement controls to ensure eligibility requirements are being followed and that there is a review of tenant eligibility calculations by another individual. Views of Responsible Officials – Management agrees with the finding.

Categories

Eligibility Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 393781 2021-003
    Material Weakness Repeat
  • 393782 2021-003
    Material Weakness Repeat
  • 393783 2021-011
    Significant Deficiency
  • 393784 2021-012
    Significant Deficiency
  • 393785 2021-011
    Significant Deficiency
  • 393786 2021-012
    Significant Deficiency
  • 393787 2021-004
    Material Weakness Repeat
  • 393788 2021-005
    Material Weakness Repeat
  • 393789 2021-006
    Significant Deficiency Repeat
  • 393790 2021-004
    Material Weakness Repeat
  • 393791 2021-005
    Material Weakness Repeat
  • 393792 2021-006
    Significant Deficiency Repeat
  • 393793 2021-007
    Material Weakness Repeat
  • 393794 2021-008
    Significant Deficiency Repeat
  • 393795 2021-009
    Significant Deficiency Repeat
  • 393796 2021-010
    Significant Deficiency
  • 970223 2021-003
    Material Weakness Repeat
  • 970224 2021-003
    Material Weakness Repeat
  • 970225 2021-011
    Significant Deficiency
  • 970226 2021-012
    Significant Deficiency
  • 970227 2021-011
    Significant Deficiency
  • 970228 2021-012
    Significant Deficiency
  • 970230 2021-005
    Material Weakness Repeat
  • 970231 2021-006
    Significant Deficiency Repeat
  • 970232 2021-004
    Material Weakness Repeat
  • 970233 2021-005
    Material Weakness Repeat
  • 970234 2021-006
    Significant Deficiency Repeat
  • 970235 2021-007
    Material Weakness Repeat
  • 970236 2021-008
    Significant Deficiency Repeat
  • 970237 2021-009
    Significant Deficiency Repeat
  • 970238 2021-010
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $1.24M
14.182 Section 8 New Construction and Substantial Rehabilitation $553,367
14.871 Section 8 Housing Choice Vouchers $312,375
14.850 Public and Indian Housing $279,167
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $178,865
10.405 Farm Labor Housing Loans and Grants $127,040
10.427 Rural Rental Assistance Payments $60,863
14.896 Family Self-Sufficiency Program $36,603