Vinton Metropolitan Housing AuthorityLocal Government

Finding Number 2020-001 CFDA Titles and Numbers Section 8 Housing Choice Voucher CFDA # 14.871 Federal Award Number/Year 2020 Federal Agency U.S. Department of Housing and Urban Development Pass- Through Agencies N/A Repeat Finding from Prior Audit? No Finding Number N/A Material Weakness Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards ?200.508 includes, in part, the following auditee responsibility: (A) Prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards in accordance with ? 200.510. Management is responsible for developing internal control procedures which provide reasonable assurance the Authority?s Schedule of Federal Awards Expenditures (the Schedule) is complete and accurate. Sound internal controls require a review of the Schedule be performed and documented to verify the information reported is complete and accurate before finalizing the Schedule. Condition: For fiscal year 2020, the Authority had the following errors on the Schedule: - The Section 9 Housing Choice Voucher receipts were understated by $40,450. Cause: The Authority lacked adequate procedures to ensure that all entries for Federal awards were recorded in the proper line item within its accounting system. Effect: These adjustments, with which management agrees, are reflected on the Schedule of Federal Awards Expenditures. Recommendation: We recommend the Authority develop policies and procedures to ensure the completeness and accuracy of the Schedule.