FAC Explorer

Audit 2198

FY End
2022-06-30
Total Expended
$17.96M
Findings
2
Programs
8
Organization: Cumberland County Housing Authority (PA)
Year: 2022 Accepted: 2023-11-03
Auditor: Novogradac & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1148 2022-001 Material Weakness - E
577590 2022-001 Material Weakness - E

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $8.34M - 0
21.023 Emergency Rental Assistance Program $7.47M Yes 0
14.850 Public and Indian Housing $886,674 Yes 1
14.267 Continuum of Care Program $809,318 - 0
14.872 Public Housing Capital Fund $398,790 - 0
14.896 Family Self-Sufficiency Program $37,500 - 0
14.238 Shelter Plus Care $12,992 - 0
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $6,133 - 0

Contacts

Name Title Type
L4MAGUSXFWD1 Kira Kessler Auditee
7172490789 Rich Larsen Auditor
No contacts on file

Notes to SEFA

Accounting Policies: BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal grant activity of Authority under programs of the federal government for the year ended June 30, 2022. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of operations of Authority, it is not intended to and does not present the net position, changes in net position or cash flows of Authority. SUMMARY OF SIGNIFICANT 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: N Rate Explanation: INDIRECT COST RATE The Authority has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2022-001
Finding 2022-001: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Federal Catalog Numbers: 14.850 Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: There are approximately 199 units. Of a sample size of twelve (12) tenant files, the following was noted. Declaration of Section 214 Statuses form was missing in 2 files. Our sample size is statistically valid. Known Questioned Costs: $8,912 Cause: There is material weakness in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Public and Indian Housing Program is in material non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. Authority Response: The Authority accepts the recommendation of the auditor and has made arrangements to comply with the Public and Indian Housing compliance requirements.
Finding 2022-001
Finding 2022-001: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Federal Catalog Numbers: 14.850 Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: There are approximately 199 units. Of a sample size of twelve (12) tenant files, the following was noted. Declaration of Section 214 Statuses form was missing in 2 files. Our sample size is statistically valid. Known Questioned Costs: $8,912 Cause: There is material weakness in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Public and Indian Housing Program is in material non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. Authority Response: The Authority accepts the recommendation of the auditor and has made arrangements to comply with the Public and Indian Housing compliance requirements.