FAC Explorer

Audit 18604

FY End
2022-09-30
Total Expended
$1.26M
Findings
2
Programs
3
Organization: Housing Authority of Somerset County (PA)
Year: 2022 Accepted: 2023-02-12
Auditor: Smith Marion & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
21261 2022-002 Significant Deficiency - E
597703 2022-002 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $928,187 Yes 1
14.871 Section 8 Housing Choice Vouchers $302,000 - 0
14.872 Public Housing Capital Fund $31,285 - 0

Contacts

Name Title Type
E3XEWLUHD3V7 Gail Charlton Auditee
8146297148 Chad Porter Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Scope of PresentationThe accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of Somerset County (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.Basis of AccountingThe 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, Audit of States, Local Governments, and Non-Profit Organizations. 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 auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-002
US Department of Housing and Urban Development Direct Award Program Name Public and Indian Housing CFDA Number 14.850 2022-002 Income Eligibility Significant Deficiency Criteria: As a condition of admission or continued occupancy, HUD requires the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility (24 CFR sections 5.230, 5.233, and 982.516). Condition: Incomplete documentation of tenant?s income eligibility for participation in the Public and Indian Housing Program. During the sampling of 22 tenant files, 1 did not contain EIV reports to document and verify income eligibility. Context: The Authority manages 221 Public Housing Units. We sampled 22 tenant files for multiple compliance requirements. With the 1/22 error rate, we would expect 10 files to have this issue. Cause: The Authority did not have adequate controls to ensure that EIV reports were obtained during admission and re-examination of tenant for the Public Housing Program. Effect: Compliance with income limits and eligibility could not be demonstrated for sampled tenants. Therefore, ineligible individuals may be receiving rental assistance based on incorrectly calculated based and unverified incomes. Recommendations: Management should implement internal control procedures to ensure that timely EIV reports are obtained during admission and re-examination. Management Views: Management agreed with the audit finding and prepared a Corrective Action Plan (CAP).
Finding 2022-002
US Department of Housing and Urban Development Direct Award Program Name Public and Indian Housing CFDA Number 14.850 2022-002 Income Eligibility Significant Deficiency Criteria: As a condition of admission or continued occupancy, HUD requires the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility (24 CFR sections 5.230, 5.233, and 982.516). Condition: Incomplete documentation of tenant?s income eligibility for participation in the Public and Indian Housing Program. During the sampling of 22 tenant files, 1 did not contain EIV reports to document and verify income eligibility. Context: The Authority manages 221 Public Housing Units. We sampled 22 tenant files for multiple compliance requirements. With the 1/22 error rate, we would expect 10 files to have this issue. Cause: The Authority did not have adequate controls to ensure that EIV reports were obtained during admission and re-examination of tenant for the Public Housing Program. Effect: Compliance with income limits and eligibility could not be demonstrated for sampled tenants. Therefore, ineligible individuals may be receiving rental assistance based on incorrectly calculated based and unverified incomes. Recommendations: Management should implement internal control procedures to ensure that timely EIV reports are obtained during admission and re-examination. Management Views: Management agreed with the audit finding and prepared a Corrective Action Plan (CAP).