Finding Text
2021-002 – INTERNAL CONTROL OVER COMPLIANCE
Material Weakness
CRITERIA
Per Uniform Guidance (2 CFR Part 200.302), the grantee must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the grantee is managing the Federal award in compliance with statutes, regulations, and the terms and conditions of the Federal award.
CONDITION
The Authority did not maintain proper monitoring, communication and control activities to ensure adherence to the Authority’s key administrative policies including procurement, occupancy and the HCV administrative plan. The Authority outsourced the management of the Housing Choice Voucher and Mainstream Voucher programs and did not properly monitor the activities of those programs. The third party management company adopted and maintained policies and procedures for the Authority without board approval.
CAUSE
The Authority did not have proper oversight of their Housing Choice Voucher and Mainstream Voucher programs.
EFFECT
This deficiency in internal controls resulted in material noncompliance, which could affect the Authority's ability to manage and report on Federal awards accurately.
QUESTIONED COSTS
None noted.
CONTEXT
We reviewed the Authority’s internal controls over compliance with federal awards.
REPEAT FINDING
See finding 2020-002.
RECOMMENDATION
We recommend the Authority’s management take an active role in reviewing their policies and monitoring the Authority’s compliance with those policies.
AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
See Corrective Action Plan.