Audit 18091

FY End
2022-06-30
Total Expended
$116.32M
Findings
12
Programs
15
Year: 2022 Accepted: 2023-03-20

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
25491 2022-001 - Yes E
25492 2022-001 - Yes E
25493 2022-001 - Yes E
25494 2022-002 - Yes L
25495 2022-002 - Yes L
25496 2022-002 - Yes L
601933 2022-001 - Yes E
601934 2022-001 - Yes E
601935 2022-001 - Yes E
601936 2022-002 - Yes L
601937 2022-002 - Yes L
601938 2022-002 - Yes L

Contacts

Name Title Type
EG8WAM315LZ5 Petra Bantum Auditee
6616318500 Nancy C. Belton Auditor
No contacts on file

Notes to SEFA

Title: Loan Outstanding Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. De Minimis Rate Used: Y Rate Explanation: Housing Authority of the County of Kern has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The U.S. Department of Agriculture made loans to the Authority under its Rural Rental Housing Loan Program. These loans had a balance outstanding at June 30, 2022 as follows. This loan program is included in the federal expenditures presented in the Schedule of Expenditures of Federal Awards. Rural Rental Housing Loans (10.415) - Balance outstanding at June 30, 2022 was $2,621,914.
Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. De Minimis Rate Used: Y Rate Explanation: Housing Authority of the County of Kern has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Housing Authority of the County of Kern under programs of the federal government for the year ended June 30, 2022. The information in 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Housing Authority of the County of Kern, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Housing Authority of the County of Kern.

Finding Details

Emergency Rental Assistance Program, United States Department of the Treasury Federal Assistance listing #21.023. Condition: Four of forty applicants tested for eligibility had errors. Three individuals were identified as having been awarded the incorrect assistance amount, which resulted in a net underpayment of $60. One applicants? file did not contain sufficient documentation for income verification. Criteria: The Department of the Treasury (Treasury) frequently asked questions (FAQs) published August 25, 2021 specifies guidance regarding the requirements of the Emergency Rental Assistance program (ERA1) established by section 501 of Division N of the Consolidated Appropriations Act, 2021, Pub. L. No. 116-260 (Dec. 27, 2020). This guidance established income verification and rent amount determination procedures as follows: Income Verification - Household Monthly Gross Income (before any deductions) must be calculated based on income from all household members. Available Assistance and Payment Process - Eligible households may receive financial assistance for prospective rent payments for additional months: subject to the availability of remaining funds currently allocated to the eligible grantee, and based on a subsequent application for additional financial assistance provided that the total months of financial assistance provided to the household do not exceed the total months of assistance allowed under the Federal and State regulations. Cause: The influx of new funding and programs caused the Authority's staff to be overwhelmed and therefore occasionally use incorrect information in performing the calculation of the rental assistance payment. Ultimately, the cause is rooted in the lack of proper internal review of the assistance payment performed by the program caseworkers. Effect: This error could cause grant funds to be misappropriated and or misallocated based on inaccurate information which could result in loss of funding. Recommendation: Management should provide additional training to its staff over eligibility procedures, including proper documentation retention and income verification, and implement a review process. This will ensure applicants are input timely into the Authority?s management system according to established policies and procedures.
Emergency Rental Assistance Program, United States Department of the Treasury Federal Assistance listing #21.023. Condition: Four of forty applicants tested for eligibility had errors. Three individuals were identified as having been awarded the incorrect assistance amount, which resulted in a net underpayment of $60. One applicants? file did not contain sufficient documentation for income verification. Criteria: The Department of the Treasury (Treasury) frequently asked questions (FAQs) published August 25, 2021 specifies guidance regarding the requirements of the Emergency Rental Assistance program (ERA1) established by section 501 of Division N of the Consolidated Appropriations Act, 2021, Pub. L. No. 116-260 (Dec. 27, 2020). This guidance established income verification and rent amount determination procedures as follows: Income Verification - Household Monthly Gross Income (before any deductions) must be calculated based on income from all household members. Available Assistance and Payment Process - Eligible households may receive financial assistance for prospective rent payments for additional months: subject to the availability of remaining funds currently allocated to the eligible grantee, and based on a subsequent application for additional financial assistance provided that the total months of financial assistance provided to the household do not exceed the total months of assistance allowed under the Federal and State regulations. Cause: The influx of new funding and programs caused the Authority's staff to be overwhelmed and therefore occasionally use incorrect information in performing the calculation of the rental assistance payment. Ultimately, the cause is rooted in the lack of proper internal review of the assistance payment performed by the program caseworkers. Effect: This error could cause grant funds to be misappropriated and or misallocated based on inaccurate information which could result in loss of funding. Recommendation: Management should provide additional training to its staff over eligibility procedures, including proper documentation retention and income verification, and implement a review process. This will ensure applicants are input timely into the Authority?s management system according to established policies and procedures.
Emergency Rental Assistance Program, United States Department of the Treasury Federal Assistance listing #21.023. Condition: Four of forty applicants tested for eligibility had errors. Three individuals were identified as having been awarded the incorrect assistance amount, which resulted in a net underpayment of $60. One applicants? file did not contain sufficient documentation for income verification. Criteria: The Department of the Treasury (Treasury) frequently asked questions (FAQs) published August 25, 2021 specifies guidance regarding the requirements of the Emergency Rental Assistance program (ERA1) established by section 501 of Division N of the Consolidated Appropriations Act, 2021, Pub. L. No. 116-260 (Dec. 27, 2020). This guidance established income verification and rent amount determination procedures as follows: Income Verification - Household Monthly Gross Income (before any deductions) must be calculated based on income from all household members. Available Assistance and Payment Process - Eligible households may receive financial assistance for prospective rent payments for additional months: subject to the availability of remaining funds currently allocated to the eligible grantee, and based on a subsequent application for additional financial assistance provided that the total months of financial assistance provided to the household do not exceed the total months of assistance allowed under the Federal and State regulations. Cause: The influx of new funding and programs caused the Authority's staff to be overwhelmed and therefore occasionally use incorrect information in performing the calculation of the rental assistance payment. Ultimately, the cause is rooted in the lack of proper internal review of the assistance payment performed by the program caseworkers. Effect: This error could cause grant funds to be misappropriated and or misallocated based on inaccurate information which could result in loss of funding. Recommendation: Management should provide additional training to its staff over eligibility procedures, including proper documentation retention and income verification, and implement a review process. This will ensure applicants are input timely into the Authority?s management system according to established policies and procedures.
Emergency Rental Assistance Program, United States Department of the Treasury Federal Assistance listing #21.023. Condition: Three of six quarterly reports and eight of ten monthly reports submitted to the granting agencies contained data that could not be substantiated through supporting documentation. Criteria: In compliance with the 2 CFR Part 200 administrative requirements subpart B - General Provisions ? 200.100 the grantee must follow administrative requirements for grant and cooperative agreements, including the requirements for Federal awarding agency management of Federal grant programs before the Federal award has been made, and the requirements Federal awarding agencies may impose on non-Federal entities in the Federal award. Per the grant agreement between the Authority and granting agencies, the Authority "agrees to maintain Project documents, records and accounts, personnel and financial records, and submit such financial and performance reports as are required by assuring a proper accounting of all Project funds, as required by the regulations adopted pursuant to the Act. Methods used to determine costs assigned to the Project must conform to 2 CFR Part 200 and must not differ substantially from the methods used by Authority to determine costs for other aspects of its operations or programs." Cause: The influx of new funding and programs has caused the Authority's staff to be overwhelmed and the protocols to retain backup information not to be properly implemented. Ultimately, the cause is rooted in the lack of organization and proper controls in place to maintain supporting documentation. Effect: The lack of supporting documentation to substantiate reports submitted to the granting agency, data could be inaccurate which could result in the Authority?s loss of future grant funding. Recommendation: We recommend management strengthen current protocols for maintaining supporting documentation for all reports submitted to granting agencies which should include the implementation of controls over reporting that would prevent report submissions until all supporting documentation has been verified by an individual independent of the preparation and filing of the report(s).
Emergency Rental Assistance Program, United States Department of the Treasury Federal Assistance listing #21.023. Condition: Three of six quarterly reports and eight of ten monthly reports submitted to the granting agencies contained data that could not be substantiated through supporting documentation. Criteria: In compliance with the 2 CFR Part 200 administrative requirements subpart B - General Provisions ? 200.100 the grantee must follow administrative requirements for grant and cooperative agreements, including the requirements for Federal awarding agency management of Federal grant programs before the Federal award has been made, and the requirements Federal awarding agencies may impose on non-Federal entities in the Federal award. Per the grant agreement between the Authority and granting agencies, the Authority "agrees to maintain Project documents, records and accounts, personnel and financial records, and submit such financial and performance reports as are required by assuring a proper accounting of all Project funds, as required by the regulations adopted pursuant to the Act. Methods used to determine costs assigned to the Project must conform to 2 CFR Part 200 and must not differ substantially from the methods used by Authority to determine costs for other aspects of its operations or programs." Cause: The influx of new funding and programs has caused the Authority's staff to be overwhelmed and the protocols to retain backup information not to be properly implemented. Ultimately, the cause is rooted in the lack of organization and proper controls in place to maintain supporting documentation. Effect: The lack of supporting documentation to substantiate reports submitted to the granting agency, data could be inaccurate which could result in the Authority?s loss of future grant funding. Recommendation: We recommend management strengthen current protocols for maintaining supporting documentation for all reports submitted to granting agencies which should include the implementation of controls over reporting that would prevent report submissions until all supporting documentation has been verified by an individual independent of the preparation and filing of the report(s).
Emergency Rental Assistance Program, United States Department of the Treasury Federal Assistance listing #21.023. Condition: Three of six quarterly reports and eight of ten monthly reports submitted to the granting agencies contained data that could not be substantiated through supporting documentation. Criteria: In compliance with the 2 CFR Part 200 administrative requirements subpart B - General Provisions ? 200.100 the grantee must follow administrative requirements for grant and cooperative agreements, including the requirements for Federal awarding agency management of Federal grant programs before the Federal award has been made, and the requirements Federal awarding agencies may impose on non-Federal entities in the Federal award. Per the grant agreement between the Authority and granting agencies, the Authority "agrees to maintain Project documents, records and accounts, personnel and financial records, and submit such financial and performance reports as are required by assuring a proper accounting of all Project funds, as required by the regulations adopted pursuant to the Act. Methods used to determine costs assigned to the Project must conform to 2 CFR Part 200 and must not differ substantially from the methods used by Authority to determine costs for other aspects of its operations or programs." Cause: The influx of new funding and programs has caused the Authority's staff to be overwhelmed and the protocols to retain backup information not to be properly implemented. Ultimately, the cause is rooted in the lack of organization and proper controls in place to maintain supporting documentation. Effect: The lack of supporting documentation to substantiate reports submitted to the granting agency, data could be inaccurate which could result in the Authority?s loss of future grant funding. Recommendation: We recommend management strengthen current protocols for maintaining supporting documentation for all reports submitted to granting agencies which should include the implementation of controls over reporting that would prevent report submissions until all supporting documentation has been verified by an individual independent of the preparation and filing of the report(s).
Emergency Rental Assistance Program, United States Department of the Treasury Federal Assistance listing #21.023. Condition: Four of forty applicants tested for eligibility had errors. Three individuals were identified as having been awarded the incorrect assistance amount, which resulted in a net underpayment of $60. One applicants? file did not contain sufficient documentation for income verification. Criteria: The Department of the Treasury (Treasury) frequently asked questions (FAQs) published August 25, 2021 specifies guidance regarding the requirements of the Emergency Rental Assistance program (ERA1) established by section 501 of Division N of the Consolidated Appropriations Act, 2021, Pub. L. No. 116-260 (Dec. 27, 2020). This guidance established income verification and rent amount determination procedures as follows: Income Verification - Household Monthly Gross Income (before any deductions) must be calculated based on income from all household members. Available Assistance and Payment Process - Eligible households may receive financial assistance for prospective rent payments for additional months: subject to the availability of remaining funds currently allocated to the eligible grantee, and based on a subsequent application for additional financial assistance provided that the total months of financial assistance provided to the household do not exceed the total months of assistance allowed under the Federal and State regulations. Cause: The influx of new funding and programs caused the Authority's staff to be overwhelmed and therefore occasionally use incorrect information in performing the calculation of the rental assistance payment. Ultimately, the cause is rooted in the lack of proper internal review of the assistance payment performed by the program caseworkers. Effect: This error could cause grant funds to be misappropriated and or misallocated based on inaccurate information which could result in loss of funding. Recommendation: Management should provide additional training to its staff over eligibility procedures, including proper documentation retention and income verification, and implement a review process. This will ensure applicants are input timely into the Authority?s management system according to established policies and procedures.
Emergency Rental Assistance Program, United States Department of the Treasury Federal Assistance listing #21.023. Condition: Four of forty applicants tested for eligibility had errors. Three individuals were identified as having been awarded the incorrect assistance amount, which resulted in a net underpayment of $60. One applicants? file did not contain sufficient documentation for income verification. Criteria: The Department of the Treasury (Treasury) frequently asked questions (FAQs) published August 25, 2021 specifies guidance regarding the requirements of the Emergency Rental Assistance program (ERA1) established by section 501 of Division N of the Consolidated Appropriations Act, 2021, Pub. L. No. 116-260 (Dec. 27, 2020). This guidance established income verification and rent amount determination procedures as follows: Income Verification - Household Monthly Gross Income (before any deductions) must be calculated based on income from all household members. Available Assistance and Payment Process - Eligible households may receive financial assistance for prospective rent payments for additional months: subject to the availability of remaining funds currently allocated to the eligible grantee, and based on a subsequent application for additional financial assistance provided that the total months of financial assistance provided to the household do not exceed the total months of assistance allowed under the Federal and State regulations. Cause: The influx of new funding and programs caused the Authority's staff to be overwhelmed and therefore occasionally use incorrect information in performing the calculation of the rental assistance payment. Ultimately, the cause is rooted in the lack of proper internal review of the assistance payment performed by the program caseworkers. Effect: This error could cause grant funds to be misappropriated and or misallocated based on inaccurate information which could result in loss of funding. Recommendation: Management should provide additional training to its staff over eligibility procedures, including proper documentation retention and income verification, and implement a review process. This will ensure applicants are input timely into the Authority?s management system according to established policies and procedures.
Emergency Rental Assistance Program, United States Department of the Treasury Federal Assistance listing #21.023. Condition: Four of forty applicants tested for eligibility had errors. Three individuals were identified as having been awarded the incorrect assistance amount, which resulted in a net underpayment of $60. One applicants? file did not contain sufficient documentation for income verification. Criteria: The Department of the Treasury (Treasury) frequently asked questions (FAQs) published August 25, 2021 specifies guidance regarding the requirements of the Emergency Rental Assistance program (ERA1) established by section 501 of Division N of the Consolidated Appropriations Act, 2021, Pub. L. No. 116-260 (Dec. 27, 2020). This guidance established income verification and rent amount determination procedures as follows: Income Verification - Household Monthly Gross Income (before any deductions) must be calculated based on income from all household members. Available Assistance and Payment Process - Eligible households may receive financial assistance for prospective rent payments for additional months: subject to the availability of remaining funds currently allocated to the eligible grantee, and based on a subsequent application for additional financial assistance provided that the total months of financial assistance provided to the household do not exceed the total months of assistance allowed under the Federal and State regulations. Cause: The influx of new funding and programs caused the Authority's staff to be overwhelmed and therefore occasionally use incorrect information in performing the calculation of the rental assistance payment. Ultimately, the cause is rooted in the lack of proper internal review of the assistance payment performed by the program caseworkers. Effect: This error could cause grant funds to be misappropriated and or misallocated based on inaccurate information which could result in loss of funding. Recommendation: Management should provide additional training to its staff over eligibility procedures, including proper documentation retention and income verification, and implement a review process. This will ensure applicants are input timely into the Authority?s management system according to established policies and procedures.
Emergency Rental Assistance Program, United States Department of the Treasury Federal Assistance listing #21.023. Condition: Three of six quarterly reports and eight of ten monthly reports submitted to the granting agencies contained data that could not be substantiated through supporting documentation. Criteria: In compliance with the 2 CFR Part 200 administrative requirements subpart B - General Provisions ? 200.100 the grantee must follow administrative requirements for grant and cooperative agreements, including the requirements for Federal awarding agency management of Federal grant programs before the Federal award has been made, and the requirements Federal awarding agencies may impose on non-Federal entities in the Federal award. Per the grant agreement between the Authority and granting agencies, the Authority "agrees to maintain Project documents, records and accounts, personnel and financial records, and submit such financial and performance reports as are required by assuring a proper accounting of all Project funds, as required by the regulations adopted pursuant to the Act. Methods used to determine costs assigned to the Project must conform to 2 CFR Part 200 and must not differ substantially from the methods used by Authority to determine costs for other aspects of its operations or programs." Cause: The influx of new funding and programs has caused the Authority's staff to be overwhelmed and the protocols to retain backup information not to be properly implemented. Ultimately, the cause is rooted in the lack of organization and proper controls in place to maintain supporting documentation. Effect: The lack of supporting documentation to substantiate reports submitted to the granting agency, data could be inaccurate which could result in the Authority?s loss of future grant funding. Recommendation: We recommend management strengthen current protocols for maintaining supporting documentation for all reports submitted to granting agencies which should include the implementation of controls over reporting that would prevent report submissions until all supporting documentation has been verified by an individual independent of the preparation and filing of the report(s).
Emergency Rental Assistance Program, United States Department of the Treasury Federal Assistance listing #21.023. Condition: Three of six quarterly reports and eight of ten monthly reports submitted to the granting agencies contained data that could not be substantiated through supporting documentation. Criteria: In compliance with the 2 CFR Part 200 administrative requirements subpart B - General Provisions ? 200.100 the grantee must follow administrative requirements for grant and cooperative agreements, including the requirements for Federal awarding agency management of Federal grant programs before the Federal award has been made, and the requirements Federal awarding agencies may impose on non-Federal entities in the Federal award. Per the grant agreement between the Authority and granting agencies, the Authority "agrees to maintain Project documents, records and accounts, personnel and financial records, and submit such financial and performance reports as are required by assuring a proper accounting of all Project funds, as required by the regulations adopted pursuant to the Act. Methods used to determine costs assigned to the Project must conform to 2 CFR Part 200 and must not differ substantially from the methods used by Authority to determine costs for other aspects of its operations or programs." Cause: The influx of new funding and programs has caused the Authority's staff to be overwhelmed and the protocols to retain backup information not to be properly implemented. Ultimately, the cause is rooted in the lack of organization and proper controls in place to maintain supporting documentation. Effect: The lack of supporting documentation to substantiate reports submitted to the granting agency, data could be inaccurate which could result in the Authority?s loss of future grant funding. Recommendation: We recommend management strengthen current protocols for maintaining supporting documentation for all reports submitted to granting agencies which should include the implementation of controls over reporting that would prevent report submissions until all supporting documentation has been verified by an individual independent of the preparation and filing of the report(s).
Emergency Rental Assistance Program, United States Department of the Treasury Federal Assistance listing #21.023. Condition: Three of six quarterly reports and eight of ten monthly reports submitted to the granting agencies contained data that could not be substantiated through supporting documentation. Criteria: In compliance with the 2 CFR Part 200 administrative requirements subpart B - General Provisions ? 200.100 the grantee must follow administrative requirements for grant and cooperative agreements, including the requirements for Federal awarding agency management of Federal grant programs before the Federal award has been made, and the requirements Federal awarding agencies may impose on non-Federal entities in the Federal award. Per the grant agreement between the Authority and granting agencies, the Authority "agrees to maintain Project documents, records and accounts, personnel and financial records, and submit such financial and performance reports as are required by assuring a proper accounting of all Project funds, as required by the regulations adopted pursuant to the Act. Methods used to determine costs assigned to the Project must conform to 2 CFR Part 200 and must not differ substantially from the methods used by Authority to determine costs for other aspects of its operations or programs." Cause: The influx of new funding and programs has caused the Authority's staff to be overwhelmed and the protocols to retain backup information not to be properly implemented. Ultimately, the cause is rooted in the lack of organization and proper controls in place to maintain supporting documentation. Effect: The lack of supporting documentation to substantiate reports submitted to the granting agency, data could be inaccurate which could result in the Authority?s loss of future grant funding. Recommendation: We recommend management strengthen current protocols for maintaining supporting documentation for all reports submitted to granting agencies which should include the implementation of controls over reporting that would prevent report submissions until all supporting documentation has been verified by an individual independent of the preparation and filing of the report(s).