FAC Explorer

Audit 13226

FY End
2023-06-30
Total Expended
$11.56M
Findings
12
Programs
6
Organization: Northwest Oregon Housing Authority (OR)
Year: 2023 Accepted: 2024-01-23
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
9568 2023-001 Significant Deficiency Yes E
9569 2023-001 Significant Deficiency Yes E
9570 2023-002 Significant Deficiency Yes N
9571 2023-002 Significant Deficiency Yes N
9572 2023-003 Material Weakness Yes N
9573 2023-003 Material Weakness Yes N
586010 2023-001 Significant Deficiency Yes E
586011 2023-001 Significant Deficiency Yes E
586012 2023-002 Significant Deficiency Yes N
586013 2023-002 Significant Deficiency Yes N
586014 2023-003 Material Weakness Yes N
586015 2023-003 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $554,937 Yes 3
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $307,900 - 0
14.182 Section 8 New Construction and Substantial Rehabilitation $249,323 - 0
10.415 Rural Rental Housing Loans $88,782 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $75,000 - 0
10.427 Rural Rental Assistance Payments $70,850 - 0

Contacts

Name Title Type
G7ZDP5TJ67S3 Jim Evans Auditee
5038610119 Mandy Merchant Auditor
No contacts on file

Notes to SEFA

Title: Sub-Recipients Accounting Policies: The above schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Authority and its Blended Component Units and is presented on the accrual basis of accounting. The information on this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. 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: N Rate Explanation: The Authority did not elect to use the 10-percent de minimis indirect cost rate. During the year ended June 30, 2023, the Authority had no sub-recipients.
Title: Noncash Federal Assistance Accounting Policies: The above schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Authority and its Blended Component Units and is presented on the accrual basis of accounting. The information on this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. 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: N Rate Explanation: The Authority did not elect to use the 10-percent de minimis indirect cost rate. The Authority did not receive any noncash federal assistance for the year ended June 30, 2023.
Title: Loan Programs Accounting Policies: The above schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Authority and its Blended Component Units and is presented on the accrual basis of accounting. The information on this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. 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: N Rate Explanation: The Authority did not elect to use the 10-percent de minimis indirect cost rate. In accordance with the Uniform Guidance, the notes to the Schedule shall include loan and loan activities of federal programs. The balance of the loan outstanding at June 30, 2023 is $78,088.

Finding Details

Finding 2023-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 Award Period: 7/1/22-6/30/23 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria: Per 24 CFR section 982.516, for both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or other income-based rent. 24 CFR section 982.516 states that the PHA must reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. 24 CFR sections 5.212 and 5.230 states that the head of household must sign one or more release forms allowing the Authority to obtain information from third parties, as well as a federally prescribed general release form for employment information. Context: During our testing of 60 files for eligibility requirements, we noted the following in 5 files: - 1 of 60 files did not have proper support for income included on the HUD-50058. - 4 of 60 files did not have proper support for assets included on the HUD-50058. - 1 of 60 files tested did not have properly calculated HAP/TAP due to incorrect income and assets support. Questioned Costs: $60 Cause: The failure to update the 50058 regarding immaterial asset amounts (no effect on HAP/TTP) was a data entry error. The one file where COLA was calculated incorrectly is not a systemic issue. Effect: The Authority is not in compliance with HUD regulations. Repeat Finding: Yes Recommendation: The Authority should review their processes for eligibility determination and documentation to ensure all information is properly documented and maintained in the files. View of Responsible Officials: There is no disagreement with this audit finding.
Finding 2023-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 Award Period: 7/1/22-6/30/23 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria: Per 24 CFR section 982.516, for both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or other income-based rent. 24 CFR section 982.516 states that the PHA must reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. 24 CFR sections 5.212 and 5.230 states that the head of household must sign one or more release forms allowing the Authority to obtain information from third parties, as well as a federally prescribed general release form for employment information. Context: During our testing of 60 files for eligibility requirements, we noted the following in 5 files: - 1 of 60 files did not have proper support for income included on the HUD-50058. - 4 of 60 files did not have proper support for assets included on the HUD-50058. - 1 of 60 files tested did not have properly calculated HAP/TAP due to incorrect income and assets support. Questioned Costs: $60 Cause: The failure to update the 50058 regarding immaterial asset amounts (no effect on HAP/TTP) was a data entry error. The one file where COLA was calculated incorrectly is not a systemic issue. Effect: The Authority is not in compliance with HUD regulations. Repeat Finding: Yes Recommendation: The Authority should review their processes for eligibility determination and documentation to ensure all information is properly documented and maintained in the files. View of Responsible Officials: There is no disagreement with this audit finding.
Finding 2023-002
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Choice Voucher Program Assistance Listing Number: 14.871 Award Period: 7/1/22-6/30/23 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria: 24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207 state that all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission. Context: During our testing of 60 files for wait list criteria, we noted the following: - 2 individual did not have their original application in the file. Questioned Costs: Unable to determine. Cause: The Authority lacked protocols to properly document the application date with the electronic wait list data entry prior to 2021. The applicants who reached the top of the wait list in 2023 applied with the Authority in mid-2019. Effect: The Authority is not in compliance with HUD regulations. Repeat Finding: Yes Recommendation: The Authority should review their policies to ensure all required documentation is maintained for all individuals who are on the waiting list. View of Responsible Officials: There is no disagreement with this audit finding.
Finding 2023-002
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Choice Voucher Program Assistance Listing Number: 14.871 Award Period: 7/1/22-6/30/23 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria: 24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207 state that all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission. Context: During our testing of 60 files for wait list criteria, we noted the following: - 2 individual did not have their original application in the file. Questioned Costs: Unable to determine. Cause: The Authority lacked protocols to properly document the application date with the electronic wait list data entry prior to 2021. The applicants who reached the top of the wait list in 2023 applied with the Authority in mid-2019. Effect: The Authority is not in compliance with HUD regulations. Repeat Finding: Yes Recommendation: The Authority should review their policies to ensure all required documentation is maintained for all individuals who are on the waiting list. View of Responsible Officials: There is no disagreement with this audit finding.
Finding 2023-003
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 Award Period: 7/1/22-6/30/23 Type of Finding: Material Weakness in Internal Control Over Compliance Criteria: 24 CFR sections 982.158(d) and 982.405(b) state that 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 qualify control re-inspections. The PHA must prepare a unit inspection report. Context: During our testing of 60 files for HQS inspection criteria, we noted the following: - 10 of 60 files tested had an inspection that was not performed within the bi-annual period. - 3 of 60 files tested utilized self-certification forms past the allowable time frame. Questioned Costs: Unable to determine. Cause: Prior to 2021, NOHA did not have written procedures in place for documenting inspections. NOHA applied the COVID waivers which allowed for more than 24 months in between inspections; and, NOHA attempted to acquire landlord self-certifications but in a small number of cases, did not receive the certification or it was not received by the due date. Effect: The Authority is not in compliance with HUD regulations. Repeat Finding: Yes Recommendation: The Authority should review their HQS inspection policies to ensure that all inspections are performed timely, and that all necessary documentation is maintained for each inspection. View of Responsible Officials: There is no disagreement with this audit finding.
Finding 2023-003
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 Award Period: 7/1/22-6/30/23 Type of Finding: Material Weakness in Internal Control Over Compliance Criteria: 24 CFR sections 982.158(d) and 982.405(b) state that 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 qualify control re-inspections. The PHA must prepare a unit inspection report. Context: During our testing of 60 files for HQS inspection criteria, we noted the following: - 10 of 60 files tested had an inspection that was not performed within the bi-annual period. - 3 of 60 files tested utilized self-certification forms past the allowable time frame. Questioned Costs: Unable to determine. Cause: Prior to 2021, NOHA did not have written procedures in place for documenting inspections. NOHA applied the COVID waivers which allowed for more than 24 months in between inspections; and, NOHA attempted to acquire landlord self-certifications but in a small number of cases, did not receive the certification or it was not received by the due date. Effect: The Authority is not in compliance with HUD regulations. Repeat Finding: Yes Recommendation: The Authority should review their HQS inspection policies to ensure that all inspections are performed timely, and that all necessary documentation is maintained for each inspection. View of Responsible Officials: There is no disagreement with this audit finding.
Finding 2023-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 Award Period: 7/1/22-6/30/23 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria: Per 24 CFR section 982.516, for both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or other income-based rent. 24 CFR section 982.516 states that the PHA must reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. 24 CFR sections 5.212 and 5.230 states that the head of household must sign one or more release forms allowing the Authority to obtain information from third parties, as well as a federally prescribed general release form for employment information. Context: During our testing of 60 files for eligibility requirements, we noted the following in 5 files: - 1 of 60 files did not have proper support for income included on the HUD-50058. - 4 of 60 files did not have proper support for assets included on the HUD-50058. - 1 of 60 files tested did not have properly calculated HAP/TAP due to incorrect income and assets support. Questioned Costs: $60 Cause: The failure to update the 50058 regarding immaterial asset amounts (no effect on HAP/TTP) was a data entry error. The one file where COLA was calculated incorrectly is not a systemic issue. Effect: The Authority is not in compliance with HUD regulations. Repeat Finding: Yes Recommendation: The Authority should review their processes for eligibility determination and documentation to ensure all information is properly documented and maintained in the files. View of Responsible Officials: There is no disagreement with this audit finding.
Finding 2023-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 Award Period: 7/1/22-6/30/23 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria: Per 24 CFR section 982.516, for both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or other income-based rent. 24 CFR section 982.516 states that the PHA must reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. 24 CFR sections 5.212 and 5.230 states that the head of household must sign one or more release forms allowing the Authority to obtain information from third parties, as well as a federally prescribed general release form for employment information. Context: During our testing of 60 files for eligibility requirements, we noted the following in 5 files: - 1 of 60 files did not have proper support for income included on the HUD-50058. - 4 of 60 files did not have proper support for assets included on the HUD-50058. - 1 of 60 files tested did not have properly calculated HAP/TAP due to incorrect income and assets support. Questioned Costs: $60 Cause: The failure to update the 50058 regarding immaterial asset amounts (no effect on HAP/TTP) was a data entry error. The one file where COLA was calculated incorrectly is not a systemic issue. Effect: The Authority is not in compliance with HUD regulations. Repeat Finding: Yes Recommendation: The Authority should review their processes for eligibility determination and documentation to ensure all information is properly documented and maintained in the files. View of Responsible Officials: There is no disagreement with this audit finding.
Finding 2023-002
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Choice Voucher Program Assistance Listing Number: 14.871 Award Period: 7/1/22-6/30/23 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria: 24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207 state that all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission. Context: During our testing of 60 files for wait list criteria, we noted the following: - 2 individual did not have their original application in the file. Questioned Costs: Unable to determine. Cause: The Authority lacked protocols to properly document the application date with the electronic wait list data entry prior to 2021. The applicants who reached the top of the wait list in 2023 applied with the Authority in mid-2019. Effect: The Authority is not in compliance with HUD regulations. Repeat Finding: Yes Recommendation: The Authority should review their policies to ensure all required documentation is maintained for all individuals who are on the waiting list. View of Responsible Officials: There is no disagreement with this audit finding.
Finding 2023-002
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Choice Voucher Program Assistance Listing Number: 14.871 Award Period: 7/1/22-6/30/23 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria: 24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207 state that all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission. Context: During our testing of 60 files for wait list criteria, we noted the following: - 2 individual did not have their original application in the file. Questioned Costs: Unable to determine. Cause: The Authority lacked protocols to properly document the application date with the electronic wait list data entry prior to 2021. The applicants who reached the top of the wait list in 2023 applied with the Authority in mid-2019. Effect: The Authority is not in compliance with HUD regulations. Repeat Finding: Yes Recommendation: The Authority should review their policies to ensure all required documentation is maintained for all individuals who are on the waiting list. View of Responsible Officials: There is no disagreement with this audit finding.
Finding 2023-003
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 Award Period: 7/1/22-6/30/23 Type of Finding: Material Weakness in Internal Control Over Compliance Criteria: 24 CFR sections 982.158(d) and 982.405(b) state that 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 qualify control re-inspections. The PHA must prepare a unit inspection report. Context: During our testing of 60 files for HQS inspection criteria, we noted the following: - 10 of 60 files tested had an inspection that was not performed within the bi-annual period. - 3 of 60 files tested utilized self-certification forms past the allowable time frame. Questioned Costs: Unable to determine. Cause: Prior to 2021, NOHA did not have written procedures in place for documenting inspections. NOHA applied the COVID waivers which allowed for more than 24 months in between inspections; and, NOHA attempted to acquire landlord self-certifications but in a small number of cases, did not receive the certification or it was not received by the due date. Effect: The Authority is not in compliance with HUD regulations. Repeat Finding: Yes Recommendation: The Authority should review their HQS inspection policies to ensure that all inspections are performed timely, and that all necessary documentation is maintained for each inspection. View of Responsible Officials: There is no disagreement with this audit finding.
Finding 2023-003
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 Award Period: 7/1/22-6/30/23 Type of Finding: Material Weakness in Internal Control Over Compliance Criteria: 24 CFR sections 982.158(d) and 982.405(b) state that 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 qualify control re-inspections. The PHA must prepare a unit inspection report. Context: During our testing of 60 files for HQS inspection criteria, we noted the following: - 10 of 60 files tested had an inspection that was not performed within the bi-annual period. - 3 of 60 files tested utilized self-certification forms past the allowable time frame. Questioned Costs: Unable to determine. Cause: Prior to 2021, NOHA did not have written procedures in place for documenting inspections. NOHA applied the COVID waivers which allowed for more than 24 months in between inspections; and, NOHA attempted to acquire landlord self-certifications but in a small number of cases, did not receive the certification or it was not received by the due date. Effect: The Authority is not in compliance with HUD regulations. Repeat Finding: Yes Recommendation: The Authority should review their HQS inspection policies to ensure that all inspections are performed timely, and that all necessary documentation is maintained for each inspection. View of Responsible Officials: There is no disagreement with this audit finding.