Finding 972321 (2022-007)

Low Income Housing Assistance Program (Section 8), Assistance Listing Number 14.871, U.S. Department of Housing and Urban Development. Criteria: Public Housing Agencies (PHAs) are required to maintain complete and accurate accounts. In addition, the Annual Contribution Contracts (ACCs) requires PHA to properly account for program activity. Proper accounting requires that (1) account balances are properly maintained, (2) records and accounting transactions support a proper roll-forward of equity, and (3) errors are corrected as detected. Condition: We noted the County received a waiver to completing their annual report but did complete a Voucher Management System (VMS) report for June 2022 which did not agree to the County’s equity balances in the Section 8 fund. Upon further investigation, the VMS report for June 2021 also did not agree to the County’s equity balances in the Section 8 fund. Context/Cause: The County did not reconcile their June 2021 and June 2022 VMS reports to the trial balance for the Section 8 fund. The June 2021 equity balances on the VMS report did not agree to the trial balance for the Section 8 fund by $172,169 and the June 2022 equity balances on the VMS report did not agree to the trial balance for the Section 8 fund by $79,981. Effects: The reports were submitted incorrectly. The VMS report for June 2022 was subsequently amended to agree to the trial balance of the Section 8 fund. The VMS report for June 2021 could not be amended. Recommendation: We recommend that the County perform a review of all inputs into the VMS report to ensure the inputs properly align with the trial balance and other supporting documentation. Auditee’s Response: We concur with the findings.