FAC Explorer

Audit 22404

FY End
2022-06-30
Total Expended
$23.56M
Findings
2
Programs
11
Organization: City of Pittsburg (CA)
Year: 2022 Accepted: 2023-03-29
Auditor: Maze & Associates Accountancy Corporation

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
22094 2022-001 Significant Deficiency - N
598536 2022-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
20.205 Highway Planning and Construction $592,025 - 0
14.871 Section 8 Housing Choice Vouchers $262,900 Yes 0
17.258 Wia Adult Program $250,000 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $206,836 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $52,548 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $48,828 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $44,797 - 0
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $39,428 - 0
20.600 State and Community Highway Safety $35,869 - 0
14.218 Community Development Block Grants/entitlement Grants $14,815 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $6,205 - 0

Contacts

Name Title Type
R442N7RAVF96 Laura Mendez Auditee
9252524872 Vikki Rodriguez Auditor
No contacts on file

Notes to SEFA

Title: LOAN AND/OR LOAN GUARANTEE PROGRAM Accounting Policies: Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. The proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Expenditures of Federal Awards reported on the Schedule are recognized when incurred. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The following loan program balance and transaction relating to these programs are included in Citys basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at June 30, 2022 consists of the following: $235,800.
Title: REPORTING ENTITY Accounting Policies: Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. The proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Expenditures of Federal Awards reported on the Schedule are recognized when incurred. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Schedule of Expenditure of Federal Awards (the Schedule) includes expenditures of federal awards for the City of Pittsburg, California (City) and its component units as disclosed in the notes to the Basic Financial Statements.The City was incorporated under the General Laws of the State of California and enjoys all the rights and privileges pertaining to such General Law cities. The City uses the Council/Manager form of government. The financial reporting entity consists of (a) the primary government, the City, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entitys financial statements to be misleading or incomplete. Component units are legally separate organizations for which the elected officials of the primary government are financially accountable. In addition, component units can be other organizations for which the primary governments exclusion would cause the reporting entitys financial statements to be misleading or incomplete. The following component units are included in the basic financial statements of the City:oHousing AuthorityoPublic Infrastructure Financing AuthorityoPittsburg Power CompanyoPittsburg Arts & Community Foundation
Title: CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUND PROGRAM (AL# 21.027) Accounting Policies: Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. The proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Expenditures of Federal Awards reported on the Schedule are recognized when incurred. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Schedule for the year ended June 30, 2022 includes expenditures for the American Rescue Plan Coronavirus State and Local Fiscal Recovery Fund Program (AL# 21.027) for the period of March 4, 2020 to June 15, 2021. The period of performance for the grant began on March 4, 2020.

Finding Details

Finding 2022-001
Finding SA2022-001: Housing Quality Inspections Assistance Listing Number: 14.871 Assistance Listing Title: Section 8 Housing Choice Vouchers Program Name of Federal Agency: Department of Housing and Urban Development Federal Award Identification Number and Year: CA060VO (2022) Criteria: 24 CFR Section 982 requires recipients of Section 8 Housing Choice Vouchers to inspect housing units for compliance with Housing Quality Standards (HQS). For units under a Housing Assistance Payment (HAP) contract that fail to meet HQS, the Housing Authority must require the owner to correct deficiencies within a specified period. Normal deficiencies of units should be corrected within thirty days of the initial failed inspection date, unless other circumstances occur. Life threatening deficiencies should be corrected within 24 hours of the initial failed inspection. Furthermore, if the Housing Authority does not verify the correction of the deficiency within sixty days of the failed inspection date, a termination notice for the contract will be issued and the HAP will be terminated. Condition: We tested thirteen failed HQS inspections in fiscal year 2022 and reviewed supporting documents for re-inspections to determine if deficiencies were corrected within the required periods for the units under the Housing Authority?s Section 8 Housing Choice Vouchers Program. During our review, we noted the following four deficiencies: 1. We noted two units that had failed inspections due to non-life threatening (normal) deficiencies on an initial inspection in November 2021. We noted that the Housing Authority had documentation of work orders to correct the units deficiencies in October 2022. However, the Housing Authority was unable to provide inspection documentation due to the fact that the Housing Authority?s legacy software with the documentation is no longer available. During fiscal year 2022, the Housing Authority converted the Housing software to a new program and the data migration did not provide the requested documents. 2. We noted four units that had failed inspections within the timeframe of November 2021 through January 2022. Although the Housing Authority inspection results letters indicated that a reinspection would occur a month later, we noted that the Housing Authority re-inspections were not completed until October 2022 for one unit, January 2023 for one unit and February 2023 for the remaining two units. 3. We noted two units that had failed initial inspections due to non-life threatening (normal) deficiencies on an initial inspection in November 2021 and January 2022, respectively. Although we noted that the Housing Authority worked with the tenants and reinspected the units, we noted that the repairs were not made until October 2022 and November 2022, respectively. We also noted that the Housing Authority did not abate the HAPs for the tenants after the sixty days lapsed from the initial failed inspections. 4. We noted two units that had failed initial inspections due to life threatening deficiencies from deficient smoke detectors, however, the Housing Authority did not maintain documentation that the follow up on the units? deficiencies occurred within 24 hours of the failed initial inspections to ensure the smoke detectors were operable. Effect: The Housing Authority is not in compliance with the requirements set forth by 24 CFR Section 982 regarding HQS inspections. Cause: The Housing Authority?s re-inspection delays discussed above were due to understaffing at the Housing Authority during fiscal year 2022. Furthermore, the Housing Authority converted Housing software during fiscal year 2022. As a result, during the data migration process, certain inspection documents did not transfer into the new Housing software and therefore, the Housing Authority does not have access to certain inspection documents. Questioned Costs: There are no known questioned costs for this finding and any potential questioned costs would be deminimus, based on the number of tenants who participate in the program and the dollar amount of Housing Choice Vouchers for Section 8 during fiscal year 2021-22. Identification As a Repeat Finding: No. Recommendation: We recommend that the Housing Authority develop procedures to ensure that re-inspections are performed timely and to ensure that life threatening deficiencies are corrected and re-inspected within 24 hours of the failed inspection. We also recommend that the Housing Authority terminate the HAP contract if a unit deficiency is not corrected within sixty days. Furthermore, we recommend that the Housing Authority maintain a system to backup data for documentation of all inspections performed. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Finding 2022-001
Finding SA2022-001: Housing Quality Inspections Assistance Listing Number: 14.871 Assistance Listing Title: Section 8 Housing Choice Vouchers Program Name of Federal Agency: Department of Housing and Urban Development Federal Award Identification Number and Year: CA060VO (2022) Criteria: 24 CFR Section 982 requires recipients of Section 8 Housing Choice Vouchers to inspect housing units for compliance with Housing Quality Standards (HQS). For units under a Housing Assistance Payment (HAP) contract that fail to meet HQS, the Housing Authority must require the owner to correct deficiencies within a specified period. Normal deficiencies of units should be corrected within thirty days of the initial failed inspection date, unless other circumstances occur. Life threatening deficiencies should be corrected within 24 hours of the initial failed inspection. Furthermore, if the Housing Authority does not verify the correction of the deficiency within sixty days of the failed inspection date, a termination notice for the contract will be issued and the HAP will be terminated. Condition: We tested thirteen failed HQS inspections in fiscal year 2022 and reviewed supporting documents for re-inspections to determine if deficiencies were corrected within the required periods for the units under the Housing Authority?s Section 8 Housing Choice Vouchers Program. During our review, we noted the following four deficiencies: 1. We noted two units that had failed inspections due to non-life threatening (normal) deficiencies on an initial inspection in November 2021. We noted that the Housing Authority had documentation of work orders to correct the units deficiencies in October 2022. However, the Housing Authority was unable to provide inspection documentation due to the fact that the Housing Authority?s legacy software with the documentation is no longer available. During fiscal year 2022, the Housing Authority converted the Housing software to a new program and the data migration did not provide the requested documents. 2. We noted four units that had failed inspections within the timeframe of November 2021 through January 2022. Although the Housing Authority inspection results letters indicated that a reinspection would occur a month later, we noted that the Housing Authority re-inspections were not completed until October 2022 for one unit, January 2023 for one unit and February 2023 for the remaining two units. 3. We noted two units that had failed initial inspections due to non-life threatening (normal) deficiencies on an initial inspection in November 2021 and January 2022, respectively. Although we noted that the Housing Authority worked with the tenants and reinspected the units, we noted that the repairs were not made until October 2022 and November 2022, respectively. We also noted that the Housing Authority did not abate the HAPs for the tenants after the sixty days lapsed from the initial failed inspections. 4. We noted two units that had failed initial inspections due to life threatening deficiencies from deficient smoke detectors, however, the Housing Authority did not maintain documentation that the follow up on the units? deficiencies occurred within 24 hours of the failed initial inspections to ensure the smoke detectors were operable. Effect: The Housing Authority is not in compliance with the requirements set forth by 24 CFR Section 982 regarding HQS inspections. Cause: The Housing Authority?s re-inspection delays discussed above were due to understaffing at the Housing Authority during fiscal year 2022. Furthermore, the Housing Authority converted Housing software during fiscal year 2022. As a result, during the data migration process, certain inspection documents did not transfer into the new Housing software and therefore, the Housing Authority does not have access to certain inspection documents. Questioned Costs: There are no known questioned costs for this finding and any potential questioned costs would be deminimus, based on the number of tenants who participate in the program and the dollar amount of Housing Choice Vouchers for Section 8 during fiscal year 2021-22. Identification As a Repeat Finding: No. Recommendation: We recommend that the Housing Authority develop procedures to ensure that re-inspections are performed timely and to ensure that life threatening deficiencies are corrected and re-inspected within 24 hours of the failed inspection. We also recommend that the Housing Authority terminate the HAP contract if a unit deficiency is not corrected within sixty days. Furthermore, we recommend that the Housing Authority maintain a system to backup data for documentation of all inspections performed. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.