Audit 291023

FY End
2021-12-31
Total Expended
$50.04M
Findings
20
Programs
5
Organization: Mobile Housing Authority (AL)
Year: 2021 Accepted: 2024-02-19

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
369635 2021-001 Significant Deficiency Yes L
369636 2021-002 Significant Deficiency - E
369637 2021-001 Significant Deficiency Yes L
369638 2021-002 Significant Deficiency - E
369639 2021-001 Significant Deficiency Yes L
369640 2021-002 Significant Deficiency - E
369641 2021-001 Significant Deficiency Yes L
369642 2021-002 Significant Deficiency - E
369643 2021-001 Significant Deficiency Yes L
369644 2021-002 Significant Deficiency - E
946077 2021-001 Significant Deficiency Yes L
946078 2021-002 Significant Deficiency - E
946079 2021-001 Significant Deficiency Yes L
946080 2021-002 Significant Deficiency - E
946081 2021-001 Significant Deficiency Yes L
946082 2021-002 Significant Deficiency - E
946083 2021-001 Significant Deficiency Yes L
946084 2021-002 Significant Deficiency - E
946085 2021-001 Significant Deficiency Yes L
946086 2021-002 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.872 Public Housing Capital Fund $9.34M - 0
14.850 Public and Indian Housing $922,939 - 0
14.871 Section 8 Housing Choice Vouchers $203,372 Yes 2
10.558 Child and Adult Care Food Program $27,560 - 0
14.879 Mainstream Vouchers $24,627 Yes 2

Contacts

Name Title Type
WJB5RDKGHXW8 Jeffrey Bennett Auditee
2514342201 Laura Anne Pray Auditor
No contacts on file

Notes to SEFA

Title: Noncash Federal Assistance Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Mobile Housing Authority and is presented on the accrual basis of accounting. 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. 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, AL 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. 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 December 31, 2021.
Title: Sub-Recipients Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Mobile Housing Authority and is presented on the accrual basis of accounting. 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. 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, AL 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During the year ended December 31, 2021, the Authority had no sub-recipients.

Finding Details

Housing Voucher Cluster Significant Deficiency in Internal Control Other matter required to be reported in accordance with Uniform Guidance Repeated from 2020 audit (see prior year Finding No. 2020-003) Condition: For the fiscal year end December 31, 2021, the Authority's unaudited financial data schedule was submitted 3 months late. Context: The Authority’s unaudited financial data submission is required to be sent to the U.S. Department of Housing and Urban Development Real Estate Assessment Center (“REAC”) by March 1st of each fiscal year. Criteria: In accordance with HUD rules and regulations, the Authority is required to have policies and procedures in place to ensure the submission of their unaudited financial information to REAC within 60 days after the fiscal year end, regardless of size and complexity of the agency. Cause: The Authority’s internal controls that were in place did not prevent the Authority from missing the required due date. Effect: The unaudited financial data was not submitted within the required time period for full points on REAC’s scoring methodology for all authorities. In addition, HUD could not provide timely financial oversight based on the unaudited REAC submission. Auditor’s Recommendations: The Authority should continue to monitor current HUD reporting due dates and follow up on expiration dates for any current relied upon waivers. In addition, we recommend the Authority develop a process to track compliance with timely HUD reporting for future due dates. View of Responsible Officials: See Corrective Action Plan.
Housing Voucher Cluster Significant Deficiency in Internal Control Other matter required to be reported in accordance with Uniform Guidance Condition: Out of an approximate population of 3,500 tenants in the Housing Voucher Cluster program, 44 tenant files were tested and the following deficiencies were noted: •4 files did not receive an annual recertification during the year •3 files did not receive an annual recertification during the prior year Context: The auditor randomly selected 44 tenant files from the program’s population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 require internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges during the onset of the COVID-19 pandemic. Additionally, a significant portion of the population being served are transient in nature and obtaining timely and accurate information is challenging. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Auditor’s Recommendations: The Authority should consider reevaluating their established procedures and controls currently in place to ensure full compliance in regards to eligibility and the timeliness of recertifications 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. View of Responsible Officials: See Corrective Action Plan.
Housing Voucher Cluster Significant Deficiency in Internal Control Other matter required to be reported in accordance with Uniform Guidance Repeated from 2020 audit (see prior year Finding No. 2020-003) Condition: For the fiscal year end December 31, 2021, the Authority's unaudited financial data schedule was submitted 3 months late. Context: The Authority’s unaudited financial data submission is required to be sent to the U.S. Department of Housing and Urban Development Real Estate Assessment Center (“REAC”) by March 1st of each fiscal year. Criteria: In accordance with HUD rules and regulations, the Authority is required to have policies and procedures in place to ensure the submission of their unaudited financial information to REAC within 60 days after the fiscal year end, regardless of size and complexity of the agency. Cause: The Authority’s internal controls that were in place did not prevent the Authority from missing the required due date. Effect: The unaudited financial data was not submitted within the required time period for full points on REAC’s scoring methodology for all authorities. In addition, HUD could not provide timely financial oversight based on the unaudited REAC submission. Auditor’s Recommendations: The Authority should continue to monitor current HUD reporting due dates and follow up on expiration dates for any current relied upon waivers. In addition, we recommend the Authority develop a process to track compliance with timely HUD reporting for future due dates. View of Responsible Officials: See Corrective Action Plan.
Housing Voucher Cluster Significant Deficiency in Internal Control Other matter required to be reported in accordance with Uniform Guidance Condition: Out of an approximate population of 3,500 tenants in the Housing Voucher Cluster program, 44 tenant files were tested and the following deficiencies were noted: •4 files did not receive an annual recertification during the year •3 files did not receive an annual recertification during the prior year Context: The auditor randomly selected 44 tenant files from the program’s population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 require internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges during the onset of the COVID-19 pandemic. Additionally, a significant portion of the population being served are transient in nature and obtaining timely and accurate information is challenging. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Auditor’s Recommendations: The Authority should consider reevaluating their established procedures and controls currently in place to ensure full compliance in regards to eligibility and the timeliness of recertifications 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. View of Responsible Officials: See Corrective Action Plan.
Housing Voucher Cluster Significant Deficiency in Internal Control Other matter required to be reported in accordance with Uniform Guidance Repeated from 2020 audit (see prior year Finding No. 2020-003) Condition: For the fiscal year end December 31, 2021, the Authority's unaudited financial data schedule was submitted 3 months late. Context: The Authority’s unaudited financial data submission is required to be sent to the U.S. Department of Housing and Urban Development Real Estate Assessment Center (“REAC”) by March 1st of each fiscal year. Criteria: In accordance with HUD rules and regulations, the Authority is required to have policies and procedures in place to ensure the submission of their unaudited financial information to REAC within 60 days after the fiscal year end, regardless of size and complexity of the agency. Cause: The Authority’s internal controls that were in place did not prevent the Authority from missing the required due date. Effect: The unaudited financial data was not submitted within the required time period for full points on REAC’s scoring methodology for all authorities. In addition, HUD could not provide timely financial oversight based on the unaudited REAC submission. Auditor’s Recommendations: The Authority should continue to monitor current HUD reporting due dates and follow up on expiration dates for any current relied upon waivers. In addition, we recommend the Authority develop a process to track compliance with timely HUD reporting for future due dates. View of Responsible Officials: See Corrective Action Plan.
Housing Voucher Cluster Significant Deficiency in Internal Control Other matter required to be reported in accordance with Uniform Guidance Condition: Out of an approximate population of 3,500 tenants in the Housing Voucher Cluster program, 44 tenant files were tested and the following deficiencies were noted: •4 files did not receive an annual recertification during the year •3 files did not receive an annual recertification during the prior year Context: The auditor randomly selected 44 tenant files from the program’s population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 require internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges during the onset of the COVID-19 pandemic. Additionally, a significant portion of the population being served are transient in nature and obtaining timely and accurate information is challenging. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Auditor’s Recommendations: The Authority should consider reevaluating their established procedures and controls currently in place to ensure full compliance in regards to eligibility and the timeliness of recertifications 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. View of Responsible Officials: See Corrective Action Plan.
Housing Voucher Cluster Significant Deficiency in Internal Control Other matter required to be reported in accordance with Uniform Guidance Repeated from 2020 audit (see prior year Finding No. 2020-003) Condition: For the fiscal year end December 31, 2021, the Authority's unaudited financial data schedule was submitted 3 months late. Context: The Authority’s unaudited financial data submission is required to be sent to the U.S. Department of Housing and Urban Development Real Estate Assessment Center (“REAC”) by March 1st of each fiscal year. Criteria: In accordance with HUD rules and regulations, the Authority is required to have policies and procedures in place to ensure the submission of their unaudited financial information to REAC within 60 days after the fiscal year end, regardless of size and complexity of the agency. Cause: The Authority’s internal controls that were in place did not prevent the Authority from missing the required due date. Effect: The unaudited financial data was not submitted within the required time period for full points on REAC’s scoring methodology for all authorities. In addition, HUD could not provide timely financial oversight based on the unaudited REAC submission. Auditor’s Recommendations: The Authority should continue to monitor current HUD reporting due dates and follow up on expiration dates for any current relied upon waivers. In addition, we recommend the Authority develop a process to track compliance with timely HUD reporting for future due dates. View of Responsible Officials: See Corrective Action Plan.
Housing Voucher Cluster Significant Deficiency in Internal Control Other matter required to be reported in accordance with Uniform Guidance Condition: Out of an approximate population of 3,500 tenants in the Housing Voucher Cluster program, 44 tenant files were tested and the following deficiencies were noted: •4 files did not receive an annual recertification during the year •3 files did not receive an annual recertification during the prior year Context: The auditor randomly selected 44 tenant files from the program’s population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 require internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges during the onset of the COVID-19 pandemic. Additionally, a significant portion of the population being served are transient in nature and obtaining timely and accurate information is challenging. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Auditor’s Recommendations: The Authority should consider reevaluating their established procedures and controls currently in place to ensure full compliance in regards to eligibility and the timeliness of recertifications 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. View of Responsible Officials: See Corrective Action Plan.
Housing Voucher Cluster Significant Deficiency in Internal Control Other matter required to be reported in accordance with Uniform Guidance Repeated from 2020 audit (see prior year Finding No. 2020-003) Condition: For the fiscal year end December 31, 2021, the Authority's unaudited financial data schedule was submitted 3 months late. Context: The Authority’s unaudited financial data submission is required to be sent to the U.S. Department of Housing and Urban Development Real Estate Assessment Center (“REAC”) by March 1st of each fiscal year. Criteria: In accordance with HUD rules and regulations, the Authority is required to have policies and procedures in place to ensure the submission of their unaudited financial information to REAC within 60 days after the fiscal year end, regardless of size and complexity of the agency. Cause: The Authority’s internal controls that were in place did not prevent the Authority from missing the required due date. Effect: The unaudited financial data was not submitted within the required time period for full points on REAC’s scoring methodology for all authorities. In addition, HUD could not provide timely financial oversight based on the unaudited REAC submission. Auditor’s Recommendations: The Authority should continue to monitor current HUD reporting due dates and follow up on expiration dates for any current relied upon waivers. In addition, we recommend the Authority develop a process to track compliance with timely HUD reporting for future due dates. View of Responsible Officials: See Corrective Action Plan.
Housing Voucher Cluster Significant Deficiency in Internal Control Other matter required to be reported in accordance with Uniform Guidance Condition: Out of an approximate population of 3,500 tenants in the Housing Voucher Cluster program, 44 tenant files were tested and the following deficiencies were noted: •4 files did not receive an annual recertification during the year •3 files did not receive an annual recertification during the prior year Context: The auditor randomly selected 44 tenant files from the program’s population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 require internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges during the onset of the COVID-19 pandemic. Additionally, a significant portion of the population being served are transient in nature and obtaining timely and accurate information is challenging. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Auditor’s Recommendations: The Authority should consider reevaluating their established procedures and controls currently in place to ensure full compliance in regards to eligibility and the timeliness of recertifications 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. View of Responsible Officials: See Corrective Action Plan.
Housing Voucher Cluster Significant Deficiency in Internal Control Other matter required to be reported in accordance with Uniform Guidance Repeated from 2020 audit (see prior year Finding No. 2020-003) Condition: For the fiscal year end December 31, 2021, the Authority's unaudited financial data schedule was submitted 3 months late. Context: The Authority’s unaudited financial data submission is required to be sent to the U.S. Department of Housing and Urban Development Real Estate Assessment Center (“REAC”) by March 1st of each fiscal year. Criteria: In accordance with HUD rules and regulations, the Authority is required to have policies and procedures in place to ensure the submission of their unaudited financial information to REAC within 60 days after the fiscal year end, regardless of size and complexity of the agency. Cause: The Authority’s internal controls that were in place did not prevent the Authority from missing the required due date. Effect: The unaudited financial data was not submitted within the required time period for full points on REAC’s scoring methodology for all authorities. In addition, HUD could not provide timely financial oversight based on the unaudited REAC submission. Auditor’s Recommendations: The Authority should continue to monitor current HUD reporting due dates and follow up on expiration dates for any current relied upon waivers. In addition, we recommend the Authority develop a process to track compliance with timely HUD reporting for future due dates. View of Responsible Officials: See Corrective Action Plan.
Housing Voucher Cluster Significant Deficiency in Internal Control Other matter required to be reported in accordance with Uniform Guidance Condition: Out of an approximate population of 3,500 tenants in the Housing Voucher Cluster program, 44 tenant files were tested and the following deficiencies were noted: •4 files did not receive an annual recertification during the year •3 files did not receive an annual recertification during the prior year Context: The auditor randomly selected 44 tenant files from the program’s population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 require internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges during the onset of the COVID-19 pandemic. Additionally, a significant portion of the population being served are transient in nature and obtaining timely and accurate information is challenging. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Auditor’s Recommendations: The Authority should consider reevaluating their established procedures and controls currently in place to ensure full compliance in regards to eligibility and the timeliness of recertifications 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. View of Responsible Officials: See Corrective Action Plan.
Housing Voucher Cluster Significant Deficiency in Internal Control Other matter required to be reported in accordance with Uniform Guidance Repeated from 2020 audit (see prior year Finding No. 2020-003) Condition: For the fiscal year end December 31, 2021, the Authority's unaudited financial data schedule was submitted 3 months late. Context: The Authority’s unaudited financial data submission is required to be sent to the U.S. Department of Housing and Urban Development Real Estate Assessment Center (“REAC”) by March 1st of each fiscal year. Criteria: In accordance with HUD rules and regulations, the Authority is required to have policies and procedures in place to ensure the submission of their unaudited financial information to REAC within 60 days after the fiscal year end, regardless of size and complexity of the agency. Cause: The Authority’s internal controls that were in place did not prevent the Authority from missing the required due date. Effect: The unaudited financial data was not submitted within the required time period for full points on REAC’s scoring methodology for all authorities. In addition, HUD could not provide timely financial oversight based on the unaudited REAC submission. Auditor’s Recommendations: The Authority should continue to monitor current HUD reporting due dates and follow up on expiration dates for any current relied upon waivers. In addition, we recommend the Authority develop a process to track compliance with timely HUD reporting for future due dates. View of Responsible Officials: See Corrective Action Plan.
Housing Voucher Cluster Significant Deficiency in Internal Control Other matter required to be reported in accordance with Uniform Guidance Condition: Out of an approximate population of 3,500 tenants in the Housing Voucher Cluster program, 44 tenant files were tested and the following deficiencies were noted: •4 files did not receive an annual recertification during the year •3 files did not receive an annual recertification during the prior year Context: The auditor randomly selected 44 tenant files from the program’s population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 require internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges during the onset of the COVID-19 pandemic. Additionally, a significant portion of the population being served are transient in nature and obtaining timely and accurate information is challenging. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Auditor’s Recommendations: The Authority should consider reevaluating their established procedures and controls currently in place to ensure full compliance in regards to eligibility and the timeliness of recertifications 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. View of Responsible Officials: See Corrective Action Plan.
Housing Voucher Cluster Significant Deficiency in Internal Control Other matter required to be reported in accordance with Uniform Guidance Repeated from 2020 audit (see prior year Finding No. 2020-003) Condition: For the fiscal year end December 31, 2021, the Authority's unaudited financial data schedule was submitted 3 months late. Context: The Authority’s unaudited financial data submission is required to be sent to the U.S. Department of Housing and Urban Development Real Estate Assessment Center (“REAC”) by March 1st of each fiscal year. Criteria: In accordance with HUD rules and regulations, the Authority is required to have policies and procedures in place to ensure the submission of their unaudited financial information to REAC within 60 days after the fiscal year end, regardless of size and complexity of the agency. Cause: The Authority’s internal controls that were in place did not prevent the Authority from missing the required due date. Effect: The unaudited financial data was not submitted within the required time period for full points on REAC’s scoring methodology for all authorities. In addition, HUD could not provide timely financial oversight based on the unaudited REAC submission. Auditor’s Recommendations: The Authority should continue to monitor current HUD reporting due dates and follow up on expiration dates for any current relied upon waivers. In addition, we recommend the Authority develop a process to track compliance with timely HUD reporting for future due dates. View of Responsible Officials: See Corrective Action Plan.
Housing Voucher Cluster Significant Deficiency in Internal Control Other matter required to be reported in accordance with Uniform Guidance Condition: Out of an approximate population of 3,500 tenants in the Housing Voucher Cluster program, 44 tenant files were tested and the following deficiencies were noted: •4 files did not receive an annual recertification during the year •3 files did not receive an annual recertification during the prior year Context: The auditor randomly selected 44 tenant files from the program’s population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 require internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges during the onset of the COVID-19 pandemic. Additionally, a significant portion of the population being served are transient in nature and obtaining timely and accurate information is challenging. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Auditor’s Recommendations: The Authority should consider reevaluating their established procedures and controls currently in place to ensure full compliance in regards to eligibility and the timeliness of recertifications 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. View of Responsible Officials: See Corrective Action Plan.
Housing Voucher Cluster Significant Deficiency in Internal Control Other matter required to be reported in accordance with Uniform Guidance Repeated from 2020 audit (see prior year Finding No. 2020-003) Condition: For the fiscal year end December 31, 2021, the Authority's unaudited financial data schedule was submitted 3 months late. Context: The Authority’s unaudited financial data submission is required to be sent to the U.S. Department of Housing and Urban Development Real Estate Assessment Center (“REAC”) by March 1st of each fiscal year. Criteria: In accordance with HUD rules and regulations, the Authority is required to have policies and procedures in place to ensure the submission of their unaudited financial information to REAC within 60 days after the fiscal year end, regardless of size and complexity of the agency. Cause: The Authority’s internal controls that were in place did not prevent the Authority from missing the required due date. Effect: The unaudited financial data was not submitted within the required time period for full points on REAC’s scoring methodology for all authorities. In addition, HUD could not provide timely financial oversight based on the unaudited REAC submission. Auditor’s Recommendations: The Authority should continue to monitor current HUD reporting due dates and follow up on expiration dates for any current relied upon waivers. In addition, we recommend the Authority develop a process to track compliance with timely HUD reporting for future due dates. View of Responsible Officials: See Corrective Action Plan.
Housing Voucher Cluster Significant Deficiency in Internal Control Other matter required to be reported in accordance with Uniform Guidance Condition: Out of an approximate population of 3,500 tenants in the Housing Voucher Cluster program, 44 tenant files were tested and the following deficiencies were noted: •4 files did not receive an annual recertification during the year •3 files did not receive an annual recertification during the prior year Context: The auditor randomly selected 44 tenant files from the program’s population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 require internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges during the onset of the COVID-19 pandemic. Additionally, a significant portion of the population being served are transient in nature and obtaining timely and accurate information is challenging. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Auditor’s Recommendations: The Authority should consider reevaluating their established procedures and controls currently in place to ensure full compliance in regards to eligibility and the timeliness of recertifications 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. View of Responsible Officials: See Corrective Action Plan.
Housing Voucher Cluster Significant Deficiency in Internal Control Other matter required to be reported in accordance with Uniform Guidance Repeated from 2020 audit (see prior year Finding No. 2020-003) Condition: For the fiscal year end December 31, 2021, the Authority's unaudited financial data schedule was submitted 3 months late. Context: The Authority’s unaudited financial data submission is required to be sent to the U.S. Department of Housing and Urban Development Real Estate Assessment Center (“REAC”) by March 1st of each fiscal year. Criteria: In accordance with HUD rules and regulations, the Authority is required to have policies and procedures in place to ensure the submission of their unaudited financial information to REAC within 60 days after the fiscal year end, regardless of size and complexity of the agency. Cause: The Authority’s internal controls that were in place did not prevent the Authority from missing the required due date. Effect: The unaudited financial data was not submitted within the required time period for full points on REAC’s scoring methodology for all authorities. In addition, HUD could not provide timely financial oversight based on the unaudited REAC submission. Auditor’s Recommendations: The Authority should continue to monitor current HUD reporting due dates and follow up on expiration dates for any current relied upon waivers. In addition, we recommend the Authority develop a process to track compliance with timely HUD reporting for future due dates. View of Responsible Officials: See Corrective Action Plan.
Housing Voucher Cluster Significant Deficiency in Internal Control Other matter required to be reported in accordance with Uniform Guidance Condition: Out of an approximate population of 3,500 tenants in the Housing Voucher Cluster program, 44 tenant files were tested and the following deficiencies were noted: •4 files did not receive an annual recertification during the year •3 files did not receive an annual recertification during the prior year Context: The auditor randomly selected 44 tenant files from the program’s population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 require internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges during the onset of the COVID-19 pandemic. Additionally, a significant portion of the population being served are transient in nature and obtaining timely and accurate information is challenging. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Auditor’s Recommendations: The Authority should consider reevaluating their established procedures and controls currently in place to ensure full compliance in regards to eligibility and the timeliness of recertifications 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. View of Responsible Officials: See Corrective Action Plan.