FAC Explorer

Audit 1279

FY End
2023-03-31
Total Expended
$14.11M
Findings
2
Programs
5
Organization: Housing Authority of the City of Independence (MO)
Year: 2023 Accepted: 2023-10-25
Auditor: Smith Marion & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
684 2023-001 Significant Deficiency Yes N
577126 2023-001 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $10.61M Yes 1
14.850 Public and Indian Housing $1.81M Yes 0
14.872 Public Housing Capital Fund $1.42M Yes 0
14.895 Jobs-Plus Pilot Initiative $200,633 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $66,685 - 0

Contacts

Name Title Type
M7HSMS617Z56 Tina Bartlett Auditee
8169940204 Chad Porter Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule presents the expenditures incurred (and related awards received) by the Independence Housing Authority that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal or state reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. The expenditures included in the accompanying schedule were reported on the accrual basis of accounting. Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The information in this schedule is presented in accordance with the requirements of Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: Y Rate Explanation: The Authority elected to use the 10% de minimums indirect cost rate as allowed in the Uniform Guidance, section 414. 17

Finding Details

Finding 2023-001
The PHA must inspect the unit leased to a family at least bi‐annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re‐inspections. The PHA must prepare a unit inspection report (24 CFR §§982.405, 983.103). During our audit, we noted multiple instances where failed HQS inspections did not have the proper support for the failed HQS inspection. Therefore, the Authority falls out of the HQS inspection compliance as noted in the Uniform Guidance Part IV HUD 14.871. We selected a sample of 40 failed inspections that occurred during the fiscal year. Out of the 40 samples selected, 6 of those lacked the proper documentation of a follow up passed inspection. Controls over compliance associated with the Authority’s grants of federal funds are inadequate. The Authority is non‐compliant with the federal regulations over this federal program, this could potentially result in significant operating and financial penalties. We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to these grants as well as maintaining more accurate and complete documentation of adherence to compliance. Management agrees and has a corrective plan detailing the course of action to be taken in the next fiscal year.
Finding 2023-001
The PHA must inspect the unit leased to a family at least bi‐annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re‐inspections. The PHA must prepare a unit inspection report (24 CFR §§982.405, 983.103). During our audit, we noted multiple instances where failed HQS inspections did not have the proper support for the failed HQS inspection. Therefore, the Authority falls out of the HQS inspection compliance as noted in the Uniform Guidance Part IV HUD 14.871. We selected a sample of 40 failed inspections that occurred during the fiscal year. Out of the 40 samples selected, 6 of those lacked the proper documentation of a follow up passed inspection. Controls over compliance associated with the Authority’s grants of federal funds are inadequate. The Authority is non‐compliant with the federal regulations over this federal program, this could potentially result in significant operating and financial penalties. We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to these grants as well as maintaining more accurate and complete documentation of adherence to compliance. Management agrees and has a corrective plan detailing the course of action to be taken in the next fiscal year.