Audit 22118

FY End
2022-12-31
Total Expended
$39.86M
Findings
10
Programs
7
Organization: Aurora Housing Authority (CO)
Year: 2022 Accepted: 2023-08-14
Auditor: Eide Bailly LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
22612 2022-002 Significant Deficiency - E
22613 2022-003 Significant Deficiency - N
22614 2022-001 Significant Deficiency - N
22615 2022-001 Significant Deficiency - N
22616 2022-001 Significant Deficiency - N
599054 2022-002 Significant Deficiency - E
599055 2022-003 Significant Deficiency - N
599056 2022-001 Significant Deficiency - N
599057 2022-001 Significant Deficiency - N
599058 2022-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $1.48M Yes 2
14.871 Section 8 Housing Choice Vouchers $1.03M Yes 1
14.879 Mainstream Vouchers $619,914 Yes 1
14.239 Home Investment Partnerships Program $200,000 - 0
14.231 Emergency Solutions Grant Program $57,031 - 0
14.267 Continuum of Care Program $38,581 - 0
14.850 Public and Indian Housing $12,267 - 0

Contacts

Name Title Type
E3LML9MG9AE3 Les Arney Auditee
3033417708 Alexis Odden Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. No federal financial assistance has beenprovided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activityof Aurora Housing Authority under programs of the federal government for the year ended December 31, 2022.The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations(CFR) Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for FederalAwards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of AuroraHousing Authority, it is not intended to and does not present the financial position, changes in net position, orcash flows of Aurora Housing Authority.

Finding Details

Eligibility Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: As required by HUD guidelines, Aurora Housing Authority is required to establish controls related to eligibility and reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary. Condition: Aurora Housing Authority?s controls in place for completing reexaminations were not in place during 2022. Cause: The program was set to terminate in September 2022 but was delayed until December 2022 and the Authority?s personnel were moved to other programs. Effect: The lack of controls resulted in many of the tenants not being reexamined during 2022 and HAP paid was paid using the last certification. Questioned Costs: Unknown Context/Sampling: A non-statistical sample of 40 transactions were selected for testing and 18 of the 40 selections did not have a recertification completed during 2022. Had the program ended in September as originally expected 8 of the 18 selections would not have needed reexaminations. Repeat Finding from Prior Year: No Recommendation: We recommend that Aurora Housing Authority implement controls to ensure timely completion of required annual re-certifications. View of Responsible Officials: Management agrees with the finding.
Special Tests and Provisions - Housing Quality Standards Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: As required by HUD guidelines, Aurora Housing Authority is required to establish controls related to ensure decent, safe and sanitary housing by performing housing quality inspections at the time of initial occupancy and at least Bi-annually thereafter to ensure that units meet the standards. Condition: Aurora Housing Authority?s controls were partially not in place for completing the biannual inspections. Cause: The program was set to terminate in September 2022 but was delayed until December 2022 and the Authority?s personnel were moved to other programs. Effect: The error resulted in some bi-annual inspections not being completed. Questioned Costs: None Context/Sampling: A non-statistical sample of 40 transactions were selected for testing, which 4 of the 40 files did not have an updated inspection. Repeat Finding from Prior Year: No Recommendation: We recommend that Aurora Housing Authority implement controls to ensure timely completion of bi-annual inspections. View of Responsible Officials: Management agrees with the finding.
Special Tests and Provisions ? Housing Quality Standards Inspections Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: As required by HUD guidelines, Aurora Housing Authority is required to conduct quality control re-inspections. Condition: Aurora Housing Authority did not perform any quality control re-inspections during the year. Cause: Due to ongoing health concerns, Aurora Housing Authority decided to not perform the re-inspections through the end of 2022. Effect: Not performing the re-inspections can cause noncompliance with HUD. Questioned Costs: N/A Context/Sampling: None as no re-inspections were performed during 2022. Repeat Finding from Prior Year: No Recommendation: We recommend that Aurora Housing Authority re-instate the quality control re-inspections immediately. View of Responsible Officials: Management agrees with the finding.
Special Tests and Provisions ? Housing Quality Standards Inspections Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: As required by HUD guidelines, Aurora Housing Authority is required to conduct quality control re-inspections. Condition: Aurora Housing Authority did not perform any quality control re-inspections during the year. Cause: Due to ongoing health concerns, Aurora Housing Authority decided to not perform the re-inspections through the end of 2022. Effect: Not performing the re-inspections can cause noncompliance with HUD. Questioned Costs: N/A Context/Sampling: None as no re-inspections were performed during 2022. Repeat Finding from Prior Year: No Recommendation: We recommend that Aurora Housing Authority re-instate the quality control re-inspections immediately. View of Responsible Officials: Management agrees with the finding.
Special Tests and Provisions ? Housing Quality Standards Inspections Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: As required by HUD guidelines, Aurora Housing Authority is required to conduct quality control re-inspections. Condition: Aurora Housing Authority did not perform any quality control re-inspections during the year. Cause: Due to ongoing health concerns, Aurora Housing Authority decided to not perform the re-inspections through the end of 2022. Effect: Not performing the re-inspections can cause noncompliance with HUD. Questioned Costs: N/A Context/Sampling: None as no re-inspections were performed during 2022. Repeat Finding from Prior Year: No Recommendation: We recommend that Aurora Housing Authority re-instate the quality control re-inspections immediately. View of Responsible Officials: Management agrees with the finding.
Eligibility Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: As required by HUD guidelines, Aurora Housing Authority is required to establish controls related to eligibility and reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary. Condition: Aurora Housing Authority?s controls in place for completing reexaminations were not in place during 2022. Cause: The program was set to terminate in September 2022 but was delayed until December 2022 and the Authority?s personnel were moved to other programs. Effect: The lack of controls resulted in many of the tenants not being reexamined during 2022 and HAP paid was paid using the last certification. Questioned Costs: Unknown Context/Sampling: A non-statistical sample of 40 transactions were selected for testing and 18 of the 40 selections did not have a recertification completed during 2022. Had the program ended in September as originally expected 8 of the 18 selections would not have needed reexaminations. Repeat Finding from Prior Year: No Recommendation: We recommend that Aurora Housing Authority implement controls to ensure timely completion of required annual re-certifications. View of Responsible Officials: Management agrees with the finding.
Special Tests and Provisions - Housing Quality Standards Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: As required by HUD guidelines, Aurora Housing Authority is required to establish controls related to ensure decent, safe and sanitary housing by performing housing quality inspections at the time of initial occupancy and at least Bi-annually thereafter to ensure that units meet the standards. Condition: Aurora Housing Authority?s controls were partially not in place for completing the biannual inspections. Cause: The program was set to terminate in September 2022 but was delayed until December 2022 and the Authority?s personnel were moved to other programs. Effect: The error resulted in some bi-annual inspections not being completed. Questioned Costs: None Context/Sampling: A non-statistical sample of 40 transactions were selected for testing, which 4 of the 40 files did not have an updated inspection. Repeat Finding from Prior Year: No Recommendation: We recommend that Aurora Housing Authority implement controls to ensure timely completion of bi-annual inspections. View of Responsible Officials: Management agrees with the finding.
Special Tests and Provisions ? Housing Quality Standards Inspections Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: As required by HUD guidelines, Aurora Housing Authority is required to conduct quality control re-inspections. Condition: Aurora Housing Authority did not perform any quality control re-inspections during the year. Cause: Due to ongoing health concerns, Aurora Housing Authority decided to not perform the re-inspections through the end of 2022. Effect: Not performing the re-inspections can cause noncompliance with HUD. Questioned Costs: N/A Context/Sampling: None as no re-inspections were performed during 2022. Repeat Finding from Prior Year: No Recommendation: We recommend that Aurora Housing Authority re-instate the quality control re-inspections immediately. View of Responsible Officials: Management agrees with the finding.
Special Tests and Provisions ? Housing Quality Standards Inspections Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: As required by HUD guidelines, Aurora Housing Authority is required to conduct quality control re-inspections. Condition: Aurora Housing Authority did not perform any quality control re-inspections during the year. Cause: Due to ongoing health concerns, Aurora Housing Authority decided to not perform the re-inspections through the end of 2022. Effect: Not performing the re-inspections can cause noncompliance with HUD. Questioned Costs: N/A Context/Sampling: None as no re-inspections were performed during 2022. Repeat Finding from Prior Year: No Recommendation: We recommend that Aurora Housing Authority re-instate the quality control re-inspections immediately. View of Responsible Officials: Management agrees with the finding.
Special Tests and Provisions ? Housing Quality Standards Inspections Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: As required by HUD guidelines, Aurora Housing Authority is required to conduct quality control re-inspections. Condition: Aurora Housing Authority did not perform any quality control re-inspections during the year. Cause: Due to ongoing health concerns, Aurora Housing Authority decided to not perform the re-inspections through the end of 2022. Effect: Not performing the re-inspections can cause noncompliance with HUD. Questioned Costs: N/A Context/Sampling: None as no re-inspections were performed during 2022. Repeat Finding from Prior Year: No Recommendation: We recommend that Aurora Housing Authority re-instate the quality control re-inspections immediately. View of Responsible Officials: Management agrees with the finding.