FAC Explorer

Audit 24014

FY End
2022-12-31
Total Expended
$10.05M
Findings
4
Programs
8
Organization: City of Peekskill (NY)
Year: 2022 Accepted: 2023-09-28
Auditor: Pkf O'Connor Davies LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
20279 2022-001 Significant Deficiency - A
20280 2022-002 Significant Deficiency - A
596721 2022-001 Significant Deficiency - A
596722 2022-002 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
20.205 Highway Planning and Construction $1.09M Yes 1
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $138,714 - 0
17.274 Youthbuild $126,288 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $97,057 - 0
17.259 Wia Youth Activities $80,915 - 0
93.276 Drug-Free Communities Support Program Grants $63,429 - 0
14.871 Section 8 Housing Choice Vouchers $47,999 Yes 0
93.787 Title V Sexual Risk Avoidance Education Program (discretionary Grants) $20,282 - 0

Contacts

Name Title Type
SWV8J5FNL9T3 Toni Tracy Auditee
9147344318 H. Chris Kopf Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the modified 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: The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of the City of Peekskill (City) under programs of the federal government for the year ended December 31, 2022. The information in this 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 the operations of the City, it is not intended to and does not present the financial position or changes in net position of the City.

Finding Details

Finding 2022-001
Section III ? Federal Award Findings and Questioned Costs Federal Agency: U.S. Department of Housing and Urban Development Housing Choice Voucher Program Assistance Listing Number 14.871 Finding: 2022-001 Housing Quality Standards (?HQS?) Inspections and HQS Enforcement (Significant Deficiency) Criteria: The PHA must inspect the unit leased to a family at least 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)). For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The PHAs failed inspection log noted seventeen units failed HQS inspection. It appears only four units were reinspected. The PHA?s tenant files did not have evidence or other verification documenting that any PHA-required repairs were completed. Cause: For the calendar year under audit, January 1, 2022, through December 31, 2022, the PHA did not have a housing inspector from September 2022 until the year end. At the time of the auditors? field work the PHA had not hired an inspector and the responsibility has fallen to the Section 8 Director. Effect or Potential Effect: The PHA is out compliance with Housing Quality Standards (?HQS?) Inspections and HQS Enforcement and may not meet its 5 Year Plan goals to provide improved living environment to: ? Ensure that all units meet the Housing Quality Standards ? Provide decent, safe, and sanitary housing for very low-income families ? Conduct more supervisory housing standards inspections to ensure safety of the participants Recommendation: The PHA must hire an inspector who is qualified and certified to perform HUD?s job requirements. The inspector is required to take and pass the Inspector (Housing) Civil Service Exam when posted. Management?s Response: See corrective action plan.
Finding 2022-002
Federal Agency: U.S. Department of Transportation Highway Planning and Construction (Federal Aid Highway Program) Assistance Listing Number 20.205 Finding: 2022-002 Federal awards not identified on the Schedule of Expenditures of Federal Awards, (?SEFA?). (Significant Deficiency) Criteria: The Uniform Guidance requires the auditee to prepare a schedule of expenditures of federal awards for the period covered by the auditee?s financial statement. The schedule of expenditures of federal awards is the basis of the auditor?s identification of major programs. Therefore, appropriate major program determination by the auditor is dependent on the accuracy and completeness of the auditee?s information in the schedule of expenditures of federal awards. The auditee?s responsibility for preparing an accurate and complete SEFA is critical. Condition: The following federal program was not originally included in the City?s Schedule of Expenditures of Federal Awards, Assistance Listing Number 20.205 Highway Planning and Construction program. Auditors identified the federal awards in the course of field work. Cause: The award was passed through from the New York State Department of Transportation to the City?s Planning Department. Relevant grant information was not accessible to the preparers of the SEFA from those who administered the grant. Effect or Potential Effect: A Uniform Guidance compliance audit is based on the premise that management must comply with federal statutes, regulations and the terms and conditions of the federal awards it receives. Without identifying the funds as federal the City may not have complied with those requirements. Recommendation: The City should accumulate and document key information relating to each federal program to assist in preparing the SEFA, as well as to provide to auditors. Management?s Response: See corrective action plan.
Finding 2022-001
Section III ? Federal Award Findings and Questioned Costs Federal Agency: U.S. Department of Housing and Urban Development Housing Choice Voucher Program Assistance Listing Number 14.871 Finding: 2022-001 Housing Quality Standards (?HQS?) Inspections and HQS Enforcement (Significant Deficiency) Criteria: The PHA must inspect the unit leased to a family at least 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)). For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The PHAs failed inspection log noted seventeen units failed HQS inspection. It appears only four units were reinspected. The PHA?s tenant files did not have evidence or other verification documenting that any PHA-required repairs were completed. Cause: For the calendar year under audit, January 1, 2022, through December 31, 2022, the PHA did not have a housing inspector from September 2022 until the year end. At the time of the auditors? field work the PHA had not hired an inspector and the responsibility has fallen to the Section 8 Director. Effect or Potential Effect: The PHA is out compliance with Housing Quality Standards (?HQS?) Inspections and HQS Enforcement and may not meet its 5 Year Plan goals to provide improved living environment to: ? Ensure that all units meet the Housing Quality Standards ? Provide decent, safe, and sanitary housing for very low-income families ? Conduct more supervisory housing standards inspections to ensure safety of the participants Recommendation: The PHA must hire an inspector who is qualified and certified to perform HUD?s job requirements. The inspector is required to take and pass the Inspector (Housing) Civil Service Exam when posted. Management?s Response: See corrective action plan.
Finding 2022-002
Federal Agency: U.S. Department of Transportation Highway Planning and Construction (Federal Aid Highway Program) Assistance Listing Number 20.205 Finding: 2022-002 Federal awards not identified on the Schedule of Expenditures of Federal Awards, (?SEFA?). (Significant Deficiency) Criteria: The Uniform Guidance requires the auditee to prepare a schedule of expenditures of federal awards for the period covered by the auditee?s financial statement. The schedule of expenditures of federal awards is the basis of the auditor?s identification of major programs. Therefore, appropriate major program determination by the auditor is dependent on the accuracy and completeness of the auditee?s information in the schedule of expenditures of federal awards. The auditee?s responsibility for preparing an accurate and complete SEFA is critical. Condition: The following federal program was not originally included in the City?s Schedule of Expenditures of Federal Awards, Assistance Listing Number 20.205 Highway Planning and Construction program. Auditors identified the federal awards in the course of field work. Cause: The award was passed through from the New York State Department of Transportation to the City?s Planning Department. Relevant grant information was not accessible to the preparers of the SEFA from those who administered the grant. Effect or Potential Effect: A Uniform Guidance compliance audit is based on the premise that management must comply with federal statutes, regulations and the terms and conditions of the federal awards it receives. Without identifying the funds as federal the City may not have complied with those requirements. Recommendation: The City should accumulate and document key information relating to each federal program to assist in preparing the SEFA, as well as to provide to auditors. Management?s Response: See corrective action plan.