FAC Explorer

Audit 27131

FY End
2022-03-31
Total Expended
$26.02M
Findings
4
Programs
11
Organization: Housing Authority of the City of Huntsville (MD)
Year: 2022 Accepted: 2022-11-20
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
35511 2022-001 Significant Deficiency - E
35512 2022-002 Significant Deficiency - N
611953 2022-001 Significant Deficiency - E
611954 2022-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $13.23M Yes 2
14.850 Public and Indian Housing $7.74M - 0
14.872 Public Housing Capital Fund $3.69M - 0
14.267 Continuum of Care Program $282,457 - 0
14.896 Pih Family Self-Sufficiency Program $280,818 - 0
14.879 Mainstream Vouchers $268,080 Yes 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $192,188 - 0
14.871 Covid-19 Housing Choice Vouchers Cares Act $135,071 Yes 0
14.850 Public Housing Cares Act $130,782 - 0
97.109 Disaster Housing Assistance Grant $59,718 - 0
14.871 Emergency Housing Vouchers $8,471 Yes 0

Contacts

Name Title Type
LZM5PD52JKV3 Teresa Wade Auditee
2565325632 Mandy Merchant 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 are recognized following the principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where applicable and available. 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 activity of Huntsville Housing Authority (the Authority) under programs of the federal government for the year ended March 31, 2022. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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 Authority, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Authority.
Title: Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where applicable and available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Of the federal expenditures presented in the accompanying schedule, the Authority provided federal awards to a subrecipient (Huntsville-Madison County Mental Health Board, Inc.) in the amount of $282,457 under the Continuum of Care program (Assistance Listing #14.267) for the year ended March 31, 2022.
Title: Noncash Federal Assistance Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where applicable and available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Authority did not receive any noncash federal assistance for the year ended March 31, 2022.

Finding Details

Finding 2022-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Award Period: April 1, 2021 ? March 31, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). Condition: In a population of over 250 tenant files, exceptions were noted in 5 out of 40 files tested. ? In 2 out of 40 files, the Authority was not able to support the dependent allowance included as a deduction from annual income. ? In 3 out of 40 files, the Authority was not able to support the reported family annual income. Questioned costs: Unable to determine. Context: 40 tenant files were selected from a population of over 250. The sample was statistically valid. Cause: The Authority did not maintain income or expense related file documentation in the tenant's file. Effect: The Authority is not in compliance with federal regulations regarding eligibility. The Housing Assistance Payment (HAP) calculation may be inaccurate resulting in an underpayment or overpayment of HAP. Repeat Finding: No Recommendation: We recommend that the Authority reviews its internal controls over obtaining and maintaining income and expense tenant file documentation to ensure compliance with eligibility requirements. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-002
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Award Period: April 1, 2021 ? March 31, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: For units under HAP contract that fail to meet Housing Quality Standards (HQS), the Authority must require the owner to correct the deficiencies within a specified correction period. 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 (24 CFR sections 982.158(d) and 982.404). Condition: In a population of over 250 failed HQS inspections, an exception was noted in 1 of the 40 inspections tested. HAP was not properly abated until the unit passed inspection. Questioned costs: Unable to determine. Context: 40 failed HQS inspections were selected from a population of over 250. The sample was statistically valid. Cause: The Authority did not abate HAP for the correct period of time. Effect: The Authority is not in compliance with federal regulations regarding HQS enforcement. HAP was overpaid. Repeat Finding: No Recommendation: We recommend that the Authority reviews its internal controls over HAP abatement to ensure units that do not meet HQS are abated for the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Award Period: April 1, 2021 ? March 31, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). Condition: In a population of over 250 tenant files, exceptions were noted in 5 out of 40 files tested. ? In 2 out of 40 files, the Authority was not able to support the dependent allowance included as a deduction from annual income. ? In 3 out of 40 files, the Authority was not able to support the reported family annual income. Questioned costs: Unable to determine. Context: 40 tenant files were selected from a population of over 250. The sample was statistically valid. Cause: The Authority did not maintain income or expense related file documentation in the tenant's file. Effect: The Authority is not in compliance with federal regulations regarding eligibility. The Housing Assistance Payment (HAP) calculation may be inaccurate resulting in an underpayment or overpayment of HAP. Repeat Finding: No Recommendation: We recommend that the Authority reviews its internal controls over obtaining and maintaining income and expense tenant file documentation to ensure compliance with eligibility requirements. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-002
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Award Period: April 1, 2021 ? March 31, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: For units under HAP contract that fail to meet Housing Quality Standards (HQS), the Authority must require the owner to correct the deficiencies within a specified correction period. 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 (24 CFR sections 982.158(d) and 982.404). Condition: In a population of over 250 failed HQS inspections, an exception was noted in 1 of the 40 inspections tested. HAP was not properly abated until the unit passed inspection. Questioned costs: Unable to determine. Context: 40 failed HQS inspections were selected from a population of over 250. The sample was statistically valid. Cause: The Authority did not abate HAP for the correct period of time. Effect: The Authority is not in compliance with federal regulations regarding HQS enforcement. HAP was overpaid. Repeat Finding: No Recommendation: We recommend that the Authority reviews its internal controls over HAP abatement to ensure units that do not meet HQS are abated for the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.