FAC Explorer

Audit 19529

FY End
2022-12-31
Total Expended
$8.80M
Findings
2
Programs
5
Organization: Freeport Housing Authority (NY)
Year: 2022 Accepted: 2023-09-28
Auditor: Rbt CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
15891 2022-001 Significant Deficiency - E
592333 2022-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $4.00M Yes 1
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $3.04M - 0
14.850 Public and Indian Housing $1.13M - 0
14.872 Public Housing Capital Fund $622,631 - 0
14.850 Public and Indian Housing - Cares Act Funding $1,922 - 0

Contacts

Name Title Type
HD1MGAJW8E93 John Hrvatin Auditee
5166232508 Joseph Montalto Auditor
No contacts on file

Notes to SEFA

Title: RECONCILIATION TO FINANCIAL STATEMENTS Accounting Policies: of the Freeport Housing Authority for the year ended December 31, 2022. Federal Awards received directly from Federal agencies, as well as Federal awards passed through other governmental agencies, are included in the Schedule. The information in the 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 (a??Uniform Guidancea??). 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.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: N Rate Explanation: The auditee did not use the de minimis cost rate. The expenditures presented in the Schedule of Expenditures of Federal Awards reconcile to the federal aid reported in the Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds as follows: Federal expenditures as reported in the SEFA: $8,798,529Reconciling items:None -Federal aid as reported in the Statement of Revenues, Expenses, and Changes in Net Position: $8,798,529

Finding Details

Finding 2022-001
B. Findings and Questioned Costs for Federal Awards 2022-001 ? Eligibility U.S. Department of Housing and Urban Development 14.871 ? Section 8 Housing Choice Vouchers Condition: During the audit, it was noted that out of 19 tenant files reviewed for the Section 8 Housing Choice Vouchers program, 1 file was missing a signed form HUD-9886 and 14 files did not have third-party income verification complete. The Authority stores the third-party income verification forms in a separate, locked location for security purposes, and was not able to locate them. Criteria: As a condition of admission or continued occupancy, PHAs must require the tenant and applicable family members to provide necessary information and releases for the PHA to verify income eligibility and obtain and document the family file third-party verification of reported family income during the annual reexamination of family income. Cause: The Authority did not have sufficient controls in place over eligibility to ensure required documentation was retained. Effect: Potential loss of funding due to noncompliance. Questioned Costs: None identified. Perspective: Based on the number of tenant files with findings, we believe this is a systemic event. Repeat Finding: Not a repeat finding. Recommendation: We recommend that the Authority establishes processes and controls to ensure eligibility requirements are met, including retaining required documentation. Auditee?s Response and Corrective Action Plan: See corrective action plan.
Finding 2022-001
B. Findings and Questioned Costs for Federal Awards 2022-001 ? Eligibility U.S. Department of Housing and Urban Development 14.871 ? Section 8 Housing Choice Vouchers Condition: During the audit, it was noted that out of 19 tenant files reviewed for the Section 8 Housing Choice Vouchers program, 1 file was missing a signed form HUD-9886 and 14 files did not have third-party income verification complete. The Authority stores the third-party income verification forms in a separate, locked location for security purposes, and was not able to locate them. Criteria: As a condition of admission or continued occupancy, PHAs must require the tenant and applicable family members to provide necessary information and releases for the PHA to verify income eligibility and obtain and document the family file third-party verification of reported family income during the annual reexamination of family income. Cause: The Authority did not have sufficient controls in place over eligibility to ensure required documentation was retained. Effect: Potential loss of funding due to noncompliance. Questioned Costs: None identified. Perspective: Based on the number of tenant files with findings, we believe this is a systemic event. Repeat Finding: Not a repeat finding. Recommendation: We recommend that the Authority establishes processes and controls to ensure eligibility requirements are met, including retaining required documentation. Auditee?s Response and Corrective Action Plan: See corrective action plan.