FAC Explorer

Audit 22040

FY End
2022-03-31
Total Expended
$4.86M
Findings
2
Programs
5
Organization: Palatka Housing Authority (FL)
Year: 2022 Accepted: 2022-12-28
Auditor: Berman Hopkins Wright & Laham CPAS and Associates

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
21151 2022-001 Significant Deficiency - E
597593 2022-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $2.32M Yes 1
14.871 Section 8 Housing Choice Vouchers $1.87M - 0
14.872 Public Housing Capital Fund $590,103 - 0
14.879 Mainstream Vouchers $82,514 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $6,139 - 0

Contacts

Name Title Type
WF3CQD1C6XE5 Anthony Woods Auditee
3863290132 Brian Nemeroff Auditor
No contacts on file

Notes to SEFA

Title: Note C: Sub-Recipients Accounting Policies: NOTE A: BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards and local assistance includes the federal grant activity of the Palatka Housing Authority and is presented on the accrual basis of accounting. The information on this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards . Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. In accordance with HUD regulations, HUD considers the Annual Budget Authority for the Section 8 Housing Choice Voucher Program ("HCV"), CFDA No. 14.871, to be an expenditure for the purposes of this schedule. Therefore, the amount in this schedule is the total amount received directly from HUD and not the expenditures paid by the Authority. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During the year ended March 31, 2022, the Authority had no sub-recipients.
Title: NOTE D: NONCASH ASSISTANCE AND OTHER Accounting Policies: NOTE A: BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards and local assistance includes the federal grant activity of the Palatka Housing Authority and is presented on the accrual basis of accounting. The information on this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards . Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. In accordance with HUD regulations, HUD considers the Annual Budget Authority for the Section 8 Housing Choice Voucher Program ("HCV"), CFDA No. 14.871, to be an expenditure for the purposes of this schedule. Therefore, the amount in this schedule is the total amount received directly from HUD and not the expenditures paid by the Authority. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Authority did not receive any noncash assistance, federal loans, or federally funded insurance during the year ended March 31, 2022.

Finding Details

Finding 2022-001
2022-001 Eligibility U.S. Department of HUD - Public and Indian Housing AL 14.850 Significant Deficiency in Internal Controls Condition: Out of a total applicant population of approximately 420 tenants, 40 applicants were tested and the following deficiencies were noted: ? 1 file had a late annual recertification ? 2 files had missing or incorrect 214 declaration documents, ? 1 file was missing permanent historical documents, ? 1 file was missing a signed flat rent option sheet, ? 2 files were had missing or unsigned 9886 release of information form, and ? 1 file had incorrectly calculated tenant income.Context: The auditor randomly selected 40 tenant files out of the population, which is considered to be a statistically valid sample. The auditor reviewed the tenant files and support to ensure that proper procedure are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Criteria: The Authority?s ACOP and 24 CFR 960.259 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding complete and accurate tenant files. Effect: The Authority is not in full compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Cause: The Authority experienced staffing turnover and did not have the available staff to fully implement the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to complete a tenants file. Auditor Recommendations: The Authority should continue to train staff on the established procedures and controls in place to ensure full compliance in regards to eligibility. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor?s sample. Management Response: See the Corrective Action Plan in this report.
Finding 2022-001
2022-001 Eligibility U.S. Department of HUD - Public and Indian Housing AL 14.850 Significant Deficiency in Internal Controls Condition: Out of a total applicant population of approximately 420 tenants, 40 applicants were tested and the following deficiencies were noted: ? 1 file had a late annual recertification ? 2 files had missing or incorrect 214 declaration documents, ? 1 file was missing permanent historical documents, ? 1 file was missing a signed flat rent option sheet, ? 2 files were had missing or unsigned 9886 release of information form, and ? 1 file had incorrectly calculated tenant income.Context: The auditor randomly selected 40 tenant files out of the population, which is considered to be a statistically valid sample. The auditor reviewed the tenant files and support to ensure that proper procedure are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Criteria: The Authority?s ACOP and 24 CFR 960.259 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding complete and accurate tenant files. Effect: The Authority is not in full compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Cause: The Authority experienced staffing turnover and did not have the available staff to fully implement the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to complete a tenants file. Auditor Recommendations: The Authority should continue to train staff on the established procedures and controls in place to ensure full compliance in regards to eligibility. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor?s sample. Management Response: See the Corrective Action Plan in this report.