FAC Explorer

Audit 16367

FY End
2022-12-31
Total Expended
$16.15M
Findings
2
Programs
4
Organization: Hsg Authority of the City of Lakewood Dba Metro West Housing Solutions (CO)
Year: 2022 Accepted: 2023-07-27
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
12220 2022-001 Material Weakness - N
588662 2022-001 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $15.96M Yes 1
14.275 Housing Trust Fund $159,000 - 0
14.218 Community Development Block Grants/entitlement Grants $30,000 - 0
14.239 Home Investment Partnerships Program $1,000 - 0

Contacts

Name Title Type
N6UPRK4X5XE4 Carl Musso Auditee
3039877588 Jodi Daugherty Auditor
No contacts on file

Notes to SEFA

Title: NOTE A - BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the Housing Authority of the City of Lakewood dba Metro West Housing Solutions (the Authority) under programs of the federal government for the year ended December 31, 2022. The information 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 (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.

Finding Details

Finding 2022-001
2022-001 - Direct Program Department of Housing and Urban Development Federal Financial Assistance Listing #14.871 Section 8 Housing Choice Vouchers Program Special Tests and Provisions: Housing Quality Standards Failed Inspections Material Weakness Criteria: As a condition of receiving Federal awards, non-Federal entities agree to comply with laws, regulations, and the provisions of grant agreements and contracts, and to maintain internal controls to provide reasonable assurance of compliance with these requirements. The Section 8 Housing Assistance Payments (HAP) grant requires that recipients perform inspections of properties where tenants receiving HAP reside and when inspections fail, re-inspections must be performed within 30 days for non-life-threatening issues. Condition: Metro West Housing Solutions did not perform re-inspections of 6 failed inspections within the prescribed 30-day HAP requirement during 2022. Cause: Controls over inspections that are a part of special tests and provisions were not properly designed to ensure that re-inspections of properties occurred within 30 days of a failed inspection, thus resulting in a deficiency of internal control. Effect: Metro West Housing Solutions could be issuing HAP for properties that are not up to code or potentially dangerous for their recipients if inspections fail and re-inspections are not occurring timely. Questioned Costs: None Context/Sampling: We initially tested 10% of the failed inspections during 2022 but expanded our sample to cover 20% of the failed inspections based on maximum risk of material noncompliance resulting from the 3 errors identified. We noted an additional 3 errors from our expanded sample. Repeat Finding from Prior Year(s): No Recommendation: We recommend management revisit controls over inspections and special tests and provisions to correct this matter and ensure no further findings occur. Views of Responsible Officials: Agree
Finding 2022-001
2022-001 - Direct Program Department of Housing and Urban Development Federal Financial Assistance Listing #14.871 Section 8 Housing Choice Vouchers Program Special Tests and Provisions: Housing Quality Standards Failed Inspections Material Weakness Criteria: As a condition of receiving Federal awards, non-Federal entities agree to comply with laws, regulations, and the provisions of grant agreements and contracts, and to maintain internal controls to provide reasonable assurance of compliance with these requirements. The Section 8 Housing Assistance Payments (HAP) grant requires that recipients perform inspections of properties where tenants receiving HAP reside and when inspections fail, re-inspections must be performed within 30 days for non-life-threatening issues. Condition: Metro West Housing Solutions did not perform re-inspections of 6 failed inspections within the prescribed 30-day HAP requirement during 2022. Cause: Controls over inspections that are a part of special tests and provisions were not properly designed to ensure that re-inspections of properties occurred within 30 days of a failed inspection, thus resulting in a deficiency of internal control. Effect: Metro West Housing Solutions could be issuing HAP for properties that are not up to code or potentially dangerous for their recipients if inspections fail and re-inspections are not occurring timely. Questioned Costs: None Context/Sampling: We initially tested 10% of the failed inspections during 2022 but expanded our sample to cover 20% of the failed inspections based on maximum risk of material noncompliance resulting from the 3 errors identified. We noted an additional 3 errors from our expanded sample. Repeat Finding from Prior Year(s): No Recommendation: We recommend management revisit controls over inspections and special tests and provisions to correct this matter and ensure no further findings occur. Views of Responsible Officials: Agree