FAC Explorer

Audit 20798

FY End
2022-12-31
Total Expended
$926,424
Findings
10
Programs
3
Organization: Las Animas / Bent County Housing Authority (CO)
Year: 2022 Accepted: 2023-09-27
Auditor: Green & Associates LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
22426 2022-003 Material Weakness - N
22427 2022-004 Material Weakness - N
22428 2022-005 Material Weakness - L
22429 2022-001 Material Weakness - N
22430 2022-002 Material Weakness - E
598868 2022-003 Material Weakness - N
598869 2022-004 Material Weakness - N
598870 2022-005 Material Weakness - L
598871 2022-001 Material Weakness - N
598872 2022-002 Material Weakness - E

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $727,318 Yes 5
10.415 Rural Rental Housing Loans $116,988 - 0
10.427 Rural Rental Assistance Payments $82,118 - 0

Contacts

Name Title Type
ZXSHDWHJVZ74 Steven Cordova Auditee
7194562748 David Green Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSGeneralThe accompanying schedule of expenditures of federal awards includes the federal grant activity of the Las Animas /Bent County Housing Authority. All federal financial assistance received by the reporting entity directly from federalagencies, as well as federal financial assistance passed through other government agencies, is included on theschedule.Basis of presentationThe accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting.The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, orused in the preparation of, the basic financial statements. Federal financial assistance provided to sub recipients istreated as an expenditure when it is paid to the sub recipient. Las Animas / Bent County Housing Authority uses the de minimis indirect cost rate of 10%.Loan GuaranteesThe Authority had one loan that was guaranteed by the U.S. Department of Agriculture. The ending balance of eachof the loan at December 31, 2022 was $100,363. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. RURAL RENTAL HOUSING LOANS (10.415) - Balances outstanding at the end of the audit period were 100363.

Finding Details

Finding 2022-003
Condition: The control deficiency exists due to one instance out of thirteen samples in which the Authority failed to properly apply the payment standard for the unit, resulting in the total subsidy being in excess of the payment standard. Cause: The cause of the deficiency was related to the improper input of information into the system Effect: The Authority is not in compliance with 24 CFR sections 982 subpart K which requires it to calculate the maximum amount of subsidy which a tenant is eligible. Recommendation: We recommend that the Authority implement a procedure to review the calculation and entry of tenant amounts into the system.
Finding 2022-004
Criteria: 24 CFR 982.4, 982.54(d)(15), 982.158(f)(7) and 982.507 requires the Authority to document the basis for the determination that the rent to owner is a reasonable rent as outlined in their administrative plan Condition: The control deficiency exists due to documentation of reasonable rent that is inadequate to determine the used to determine reasonable rent and did not contain sufficient information to support the calculation. Cause: The cause of the deficiency was related to turnover of employees. Effect: The Authority is not in compliance with 24 CFR 982.4, 982.54(d)(15), 982.158(f)(7) and 982.507 Recommendation: We recommend that the Authority review their procedures to ensure reasonable rent is properly documented and update their administrative plan to reflect any changes.
Finding 2022-005
Criteria: 2 CFR 200.36 of the Uniform Guidance requires the Authority to submit the audited financial statements to the Federal Audit Clearinghouse within 30 days of the completion of the audit, but no later than nine months from the conclusion of the fiscal year. Condition: The control deficiency exists due the audited financial statements not being submitted to the Federal Audit Clearinghouse until subsequent to the submission deadline Cause: The cause of the deficiency was related to internal delays resulting in the submission of the audited financial statements subsequent to the submission deadline Effect: The Authority is not in compliance with 2 CFR 200.36 of the Uniform Guidance. Recommendation: We recommend that the Authority review their procedures to ensure timely submission of the audited financial statements.
Finding 2022-001
Condition: The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Cause: Due to the turnover of personnel there were not enough personnel allotted to ensure compliance with HQS inspections. Condition: The control deficiency exists due to three instances out of thirteen samples in which a unit failed the initial inspection and the re-inspection was either not performed or not properly documented. Recommendation: We recommend that the Authority review its policy to inspect units annually and to ensure that there is staff available to perform these inspections and to follow up on any deficiencies.
Finding 2022-002
Condition: The control deficiency exists due to two instances out of thirteen samples in which the Authority failed to properly document an instance of zero income, or did not properly calculate the tenant portion of the rent. Cause: The cause of the deficiency was related to the improper input of information into the system and the failure to obtain proper documentation of income related items in accordance with the Authority?s policies. Effect: The Authority is not in compliance with 24 CFR sections 982.516 which requires it to obtain and document in the file reported family annual income and to determine the tenant?s portion of the rent. Recommendation: We recommend that the Authority communicate the income verification policy with all employees and to ensure the employees have training sufficient to comply with these policies.
Finding 2022-003
Condition: The control deficiency exists due to one instance out of thirteen samples in which the Authority failed to properly apply the payment standard for the unit, resulting in the total subsidy being in excess of the payment standard. Cause: The cause of the deficiency was related to the improper input of information into the system Effect: The Authority is not in compliance with 24 CFR sections 982 subpart K which requires it to calculate the maximum amount of subsidy which a tenant is eligible. Recommendation: We recommend that the Authority implement a procedure to review the calculation and entry of tenant amounts into the system.
Finding 2022-004
Criteria: 24 CFR 982.4, 982.54(d)(15), 982.158(f)(7) and 982.507 requires the Authority to document the basis for the determination that the rent to owner is a reasonable rent as outlined in their administrative plan Condition: The control deficiency exists due to documentation of reasonable rent that is inadequate to determine the used to determine reasonable rent and did not contain sufficient information to support the calculation. Cause: The cause of the deficiency was related to turnover of employees. Effect: The Authority is not in compliance with 24 CFR 982.4, 982.54(d)(15), 982.158(f)(7) and 982.507 Recommendation: We recommend that the Authority review their procedures to ensure reasonable rent is properly documented and update their administrative plan to reflect any changes.
Finding 2022-005
Criteria: 2 CFR 200.36 of the Uniform Guidance requires the Authority to submit the audited financial statements to the Federal Audit Clearinghouse within 30 days of the completion of the audit, but no later than nine months from the conclusion of the fiscal year. Condition: The control deficiency exists due the audited financial statements not being submitted to the Federal Audit Clearinghouse until subsequent to the submission deadline Cause: The cause of the deficiency was related to internal delays resulting in the submission of the audited financial statements subsequent to the submission deadline Effect: The Authority is not in compliance with 2 CFR 200.36 of the Uniform Guidance. Recommendation: We recommend that the Authority review their procedures to ensure timely submission of the audited financial statements.
Finding 2022-001
Condition: The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Cause: Due to the turnover of personnel there were not enough personnel allotted to ensure compliance with HQS inspections. Condition: The control deficiency exists due to three instances out of thirteen samples in which a unit failed the initial inspection and the re-inspection was either not performed or not properly documented. Recommendation: We recommend that the Authority review its policy to inspect units annually and to ensure that there is staff available to perform these inspections and to follow up on any deficiencies.
Finding 2022-002
Condition: The control deficiency exists due to two instances out of thirteen samples in which the Authority failed to properly document an instance of zero income, or did not properly calculate the tenant portion of the rent. Cause: The cause of the deficiency was related to the improper input of information into the system and the failure to obtain proper documentation of income related items in accordance with the Authority?s policies. Effect: The Authority is not in compliance with 24 CFR sections 982.516 which requires it to obtain and document in the file reported family annual income and to determine the tenant?s portion of the rent. Recommendation: We recommend that the Authority communicate the income verification policy with all employees and to ensure the employees have training sufficient to comply with these policies.