FAC Explorer

Audit 16514

FY End
2022-06-30
Total Expended
$3.79M
Findings
6
Programs
4
Organization: Adams County Housing Authority (PA)
Year: 2022 Accepted: 2023-01-04
Auditor: Hamilton & Musser PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
12259 2022-001 Significant Deficiency - N
12260 2022-002 Significant Deficiency - N
12261 2022-003 Significant Deficiency - B
588701 2022-001 Significant Deficiency - N
588702 2022-002 Significant Deficiency - N
588703 2022-003 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $3.32M Yes 3
10.427 Rural Rental Assistance Payments $105,732 - 0
14.879 Mainstream Vouchers $90,008 - 0
14.896 Family Self-Sufficiency Program $74,546 - 0

Contacts

Name Title Type
HAATKL5MJTA8 Stephanie McIlwee Auditee
7173341518 Nicholas Shearer Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE 1 BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federalgrant activity of Adams County Housing Authority under programs of the federal government forthe year ended June 30, 2022. The information in this Schedule is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards. Because the Schedulepresents only a selected portion of the operations of Adams County Housing Authority, it is notintended to and does not present the net position or changes in net position of Adams CountyHousing Authority.NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the modified cash basis of accounting. Suchexpenditures are recognized following cost principles contained in the Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. RURAL RENTAL ASSISTANCE PAYMENTS (10.427) - Balances outstanding at the end of the audit period were 198975. RURAL RENTAL ASSISTANCE PAYMENTS (10.427) - Balances outstanding at the end of the audit period were 105732.

Finding Details

Finding 2022-001
#2022-001 ? Significant Deficiency ? Depository Agreements Section 8 Housing Choice Vouchers, CFDA #14.871 Criteria The Office of Management and Budget issuance of the Code of Federal Regulations (CFR) specifically states Public Housing Authorities are required to enter into General Depository Agreements with their financial institutions using a form as required by HUD. Condition During the course of the audit, a depository agreement was not able to be produced between the depository and the Public Housing Authority. Cause The cause is the form not able to be located.Effect The potential effects of not having the agreement is a lack of safe guards for federal funds and providing third party rights to HUD. Questioned Costs None Perspective Information The finding is related only to the HCV program funds.Identification as a repeat finding There was no similar finding in the prior year. Recommendation We recommend that the Authority to investigate the use of form and verify its existence or the need to file a new form. View of responsible officials and planned corrective action We agree that this compliance requirement is listed in the compliance supplement and due to the age of the bank account the form was not able to be located during the duration of the audit. HUD Form 51999 will be updated and submitted to HUD for approval.
Finding 2022-002
#2022-002 ? Significant Deficiency ? Housing Assistance Payments Section 8 Housing Choice Vouchers, CFDA #14.871 Criteria The Office of Management and Budget issuance of the Code of Federal Regulations (CFR) specifically states Public Housing Authorities must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. The HAP amount must be reflected on the HAP contract and HAP register. Condition During the course of the audit, it was noted that the amount of the HAP payment was miscalculated for a number of families utilizing the program. Cause The cause is due to information from the families that was missing. Effect The potential effect is that the HAP payments could be overstated. Questioned Costs None Perspective Information The finding is related only to the HCV program funds. Identification as a repeat finding There was no similar finding in the prior year. Recommendation We recommend that the Authority implement additional review procedures over the HAP contract and documentation prior or soon after the file is finalized. View of responsible officials and planned corrective action We agree that this compliance requirement is listed in the compliance supplement. We will implement additional review procedures to capture any missing or errors in the reporting. Additional training has been provided to the HCV Staff.
Finding 2022-003
#2022-003 ? Significant Deficiency ? Allocation to HCV program Section 8 Housing Choice Vouchers, CFDA #14.871 Criteria Adams County Housing Authority?s cost allocation plan approved by HUD specifically states that for certain expenses an allocation of 25% to the HCV is appropriate. Condition During the course of the audit, it was noted that Adams County Housing Authority is not following their cost allocation plan in regards to certain postage, health benefit, and telephone expenses. Cause The cause is due to not referencing the cost allocation plan when approving expenses. Effect The potential effects is that the HCV program expenses were understated. Questioned Costs None Perspective Information In all exceptions noted, Adams County Housing Authority undercharged the HCV program. Identification as a repeat finding There was no similar finding in the prior year. Recommendation We recommend that the Authority implement additional review procedures over invoices to verify the allocation according to the cost allocation plan. View of responsible officials and planned corrective action We agree that there were some expenses that did not follow the cost allocation and that in all cases noted, we undercharged the HCV program. We will implement further review processes that reference expenses directly back to the cost allocation plan.
Finding 2022-001
#2022-001 ? Significant Deficiency ? Depository Agreements Section 8 Housing Choice Vouchers, CFDA #14.871 Criteria The Office of Management and Budget issuance of the Code of Federal Regulations (CFR) specifically states Public Housing Authorities are required to enter into General Depository Agreements with their financial institutions using a form as required by HUD. Condition During the course of the audit, a depository agreement was not able to be produced between the depository and the Public Housing Authority. Cause The cause is the form not able to be located.Effect The potential effects of not having the agreement is a lack of safe guards for federal funds and providing third party rights to HUD. Questioned Costs None Perspective Information The finding is related only to the HCV program funds.Identification as a repeat finding There was no similar finding in the prior year. Recommendation We recommend that the Authority to investigate the use of form and verify its existence or the need to file a new form. View of responsible officials and planned corrective action We agree that this compliance requirement is listed in the compliance supplement and due to the age of the bank account the form was not able to be located during the duration of the audit. HUD Form 51999 will be updated and submitted to HUD for approval.
Finding 2022-002
#2022-002 ? Significant Deficiency ? Housing Assistance Payments Section 8 Housing Choice Vouchers, CFDA #14.871 Criteria The Office of Management and Budget issuance of the Code of Federal Regulations (CFR) specifically states Public Housing Authorities must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. The HAP amount must be reflected on the HAP contract and HAP register. Condition During the course of the audit, it was noted that the amount of the HAP payment was miscalculated for a number of families utilizing the program. Cause The cause is due to information from the families that was missing. Effect The potential effect is that the HAP payments could be overstated. Questioned Costs None Perspective Information The finding is related only to the HCV program funds. Identification as a repeat finding There was no similar finding in the prior year. Recommendation We recommend that the Authority implement additional review procedures over the HAP contract and documentation prior or soon after the file is finalized. View of responsible officials and planned corrective action We agree that this compliance requirement is listed in the compliance supplement. We will implement additional review procedures to capture any missing or errors in the reporting. Additional training has been provided to the HCV Staff.
Finding 2022-003
#2022-003 ? Significant Deficiency ? Allocation to HCV program Section 8 Housing Choice Vouchers, CFDA #14.871 Criteria Adams County Housing Authority?s cost allocation plan approved by HUD specifically states that for certain expenses an allocation of 25% to the HCV is appropriate. Condition During the course of the audit, it was noted that Adams County Housing Authority is not following their cost allocation plan in regards to certain postage, health benefit, and telephone expenses. Cause The cause is due to not referencing the cost allocation plan when approving expenses. Effect The potential effects is that the HCV program expenses were understated. Questioned Costs None Perspective Information In all exceptions noted, Adams County Housing Authority undercharged the HCV program. Identification as a repeat finding There was no similar finding in the prior year. Recommendation We recommend that the Authority implement additional review procedures over invoices to verify the allocation according to the cost allocation plan. View of responsible officials and planned corrective action We agree that there were some expenses that did not follow the cost allocation and that in all cases noted, we undercharged the HCV program. We will implement further review processes that reference expenses directly back to the cost allocation plan.