Audit 295391

FY End
2022-12-31
Total Expended
$2.67M
Findings
16
Programs
3
Year: 2022 Accepted: 2024-03-15
Auditor: Sb & Company LLC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
380637 2022-001 - - P
380638 2022-002 Material Weakness Yes E
380639 2022-003 Material Weakness Yes N
380640 2022-004 Significant Deficiency Yes P
380641 2022-001 - - P
380642 2022-004 Significant Deficiency - P
380643 2022-001 - - P
380644 2022-004 Significant Deficiency - P
957079 2022-001 - - P
957080 2022-002 Material Weakness Yes E
957081 2022-003 Material Weakness Yes N
957082 2022-004 Significant Deficiency Yes P
957083 2022-001 - - P
957084 2022-004 Significant Deficiency - P
957085 2022-001 - - P
957086 2022-004 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $1.80M Yes 4
14.872 Public Housing Capital Fund $547,255 - 2
14.850 Public and Indian Housing $320,300 - 2

Contacts

Name Title Type
TLNUUNJTGLD5 Don Bibb Auditee
4107491383 Christopher Lehman Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: All Federal grant operations of the Authority are included in the scope of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Single Audit). The Single Audit was performed in accordance with the provisions of the OMB Compliance Supplement (the Compliance Supplement). Compliance testing of all requirements, as described in the Compliance Supplement, was performed for the grant program noted below. We have evaluated the Federal financial assistance programs of the Authority for the year ended December 31, 2022, and have selected major programs for testing. Our actual coverage was 68%. The major program tested is listed below. Expenditures reported on the Schedule of expenditures of Federal awards are reported following, as applicable, the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of Federal awards (the "Schedule") includes the Federal award activity of the Authority 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 Authority, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Authority.

Finding Details

Criteria It is the auditee’s responsibility to ensure that the Data Collection Form and Financial Data Schedule (FDS) are submitted timely and accurately. The due date for the data collection form is the earlier of 30 days after receipt of the audit report or nine months after the Authority’s yearend, and the due date for the FDS submission is nine months after the Authority’s year-end. Condition The Data Collection Form for the year ended December 31, 2022, was due for submission to the Federal Audit Clearing House by September 30, 2023 (nine months after the Authority year-end) and was not submitted by that date. Additionally, the FDS submission for the year ended December 31, 2022 was due for submission to HUD by the deadline of September 30, 2023 and was not submitted by that date. Questioned Costs None. Cause The Authority has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used to complete the Data Collection Form and FDS. Effect Because of the late submission of the audit reports, the reporting package and FDS was not made available to users in a timely manner. Recommendation We recommended that the Authority develop procedures to ensure that future reporting packages and FDS reports are submitted by the respective deadlines.
Criteria: In accordance with various subsections of 24 CFR Section 982, the Authority is required to: • obtain and review documentation supporting United States of America citizenship; • execute release and consent form approved by the Authority or the Department of Housing and Urban Development ("HUD") authorizing any depository or private source of income, or any Federal, State, or local agency, to furnish or release to HUD such information as the Authority or HUD determines to be necessary; and • verify income listed on the HUD Form 50058. The Authority is required to have controls in place to ensure recertifications are properly and timely completed. Condition: The Authority did not: • retain documentation supporting United States of America citizenship; • obtain proper authorization from tenants to release necessary information; and • obtain supporting documentation for the income listed on the HUD Form 50058. The control over review and approval of the annual recertifications was not consistently applied Context: Of the 40 selections made, the Authority did not: • retain documentation supporting United States of America citizenship for 10 selections; • obtain proper authorization from tenants to release necessary information for one selections; and • obtain supporting documentation for the income listed on the HUD Form 50058 for three selections. In reviewing the tenant files selected, review and approval of the annual recertifications was not evident in some files. Effect: The Authority was unable to demonstrate: • United States of America citizenship; • proper authorization from tenants to release necessary information; • the income listed on the HUD Form 50058 was accurate. Recertifications could be improperly completed or missed altogether. Cause: The Authority's internal controls in place did not prevent the Authority from missing required documentation, authorization, and income support in its tenant files. The control over review and approval of the annual recertifications was not properly implemented. Questioned Costs: Unknown Auditor's Recommendation: The Authority should review and enhance its internal controls to ensure: • management obtains and reviews documentation supporting United States of America citizenship; • tenants provide release forms prior to obtaining necessary documentation; • management verifies income listed on the HUD Form 50058; and • recertifications are consistently reviewed and approved.
Criteria: In accordance with various subsections of 24 CFR Section 982, the Authority is required to: • review utility rate data at least annually and update the utility allowance schedule as necessary; • inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards ("HQS"); and Condition: The Authority did not: • provide updated utility allowance schedules; • inspect the units to determine if they meet HQS; and Context: Of the 40 selections made, the Authority did not: • provide updated utility allowance schedules for three selections; • provide support for inspections to determine if the unit met HQS for 27 selections; and Effect: The Authority was unable to demonstrate: • the utility allowance schedules were accurate; • the units met HQS; and were accurate Cause: The Authority's internal controls in place did not prevent the Authority from missing required utility allowance and HQS compliance requirements. Questioned Costs: None. Auditor's Recommendation: The Authority should review and enhance its internal controls to ensure: • the utility allowance schedules are reviewed and updated as necessary at least annually; • units are inspected annually under HQS
Criteria: Wicomico County Housing Authority (the "Authority") should maintain appropriate controls over the payroll process to prevent or detect inaccurate or unsupported costs. Condition: The Authority's controls over the payroll process were not properly implemented, resulting in employees' timesheets not being reviewed or approved. Context: The Authority did not obtain a supervisor's review and approval of timesheets for hourly employees. Effect: Payroll could be misstated for hourly employees claiming hours or overtime worked and/or for employees paid a salary or wage that is unapproved by the Board. Cause: The Authority's internal controls over the payroll process were not appropriately implemented surrounding timesheet review and approval. Auditor's Recommendation: The Authority should review and enhance its internal controls to ensure every timesheet is reviewed and approved by the hourly employee's supervisor.
Criteria It is the auditee’s responsibility to ensure that the Data Collection Form and Financial Data Schedule (FDS) are submitted timely and accurately. The due date for the data collection form is the earlier of 30 days after receipt of the audit report or nine months after the Authority’s yearend, and the due date for the FDS submission is nine months after the Authority’s year-end. Condition The Data Collection Form for the year ended December 31, 2022, was due for submission to the Federal Audit Clearing House by September 30, 2023 (nine months after the Authority year-end) and was not submitted by that date. Additionally, the FDS submission for the year ended December 31, 2022 was due for submission to HUD by the deadline of September 30, 2023 and was not submitted by that date. Questioned Costs None. Cause The Authority has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used to complete the Data Collection Form and FDS. Effect Because of the late submission of the audit reports, the reporting package and FDS was not made available to users in a timely manner. Recommendation We recommended that the Authority develop procedures to ensure that future reporting packages and FDS reports are submitted by the respective deadlines.
Criteria: Wicomico County Housing Authority (the "Authority") should maintain appropriate controls over the payroll process to prevent or detect inaccurate or unsupported costs. Condition: The Authority's controls over the payroll process were not properly implemented, resulting in employees' timesheets not being reviewed or approved. Context: The Authority did not obtain a supervisor's review and approval of timesheets for hourly employees. Effect: Payroll could be misstated for hourly employees claiming hours or overtime worked and/or for employees paid a salary or wage that is unapproved by the Board. Cause: The Authority's internal controls over the payroll process were not appropriately implemented surrounding timesheet review and approval. Auditor's Recommendation: The Authority should review and enhance its internal controls to ensure every timesheet is reviewed and approved by the hourly employee's supervisor.
Criteria It is the auditee’s responsibility to ensure that the Data Collection Form and Financial Data Schedule (FDS) are submitted timely and accurately. The due date for the data collection form is the earlier of 30 days after receipt of the audit report or nine months after the Authority’s yearend, and the due date for the FDS submission is nine months after the Authority’s year-end. Condition The Data Collection Form for the year ended December 31, 2022, was due for submission to the Federal Audit Clearing House by September 30, 2023 (nine months after the Authority year-end) and was not submitted by that date. Additionally, the FDS submission for the year ended December 31, 2022 was due for submission to HUD by the deadline of September 30, 2023 and was not submitted by that date. Questioned Costs None. Cause The Authority has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used to complete the Data Collection Form and FDS. Effect Because of the late submission of the audit reports, the reporting package and FDS was not made available to users in a timely manner. Recommendation We recommended that the Authority develop procedures to ensure that future reporting packages and FDS reports are submitted by the respective deadlines.
Criteria: Wicomico County Housing Authority (the "Authority") should maintain appropriate controls over the payroll process to prevent or detect inaccurate or unsupported costs. Condition: The Authority's controls over the payroll process were not properly implemented, resulting in employees' timesheets not being reviewed or approved. Context: The Authority did not obtain a supervisor's review and approval of timesheets for hourly employees. Effect: Payroll could be misstated for hourly employees claiming hours or overtime worked and/or for employees paid a salary or wage that is unapproved by the Board. Cause: The Authority's internal controls over the payroll process were not appropriately implemented surrounding timesheet review and approval. Auditor's Recommendation: The Authority should review and enhance its internal controls to ensure every timesheet is reviewed and approved by the hourly employee's supervisor.
Criteria It is the auditee’s responsibility to ensure that the Data Collection Form and Financial Data Schedule (FDS) are submitted timely and accurately. The due date for the data collection form is the earlier of 30 days after receipt of the audit report or nine months after the Authority’s yearend, and the due date for the FDS submission is nine months after the Authority’s year-end. Condition The Data Collection Form for the year ended December 31, 2022, was due for submission to the Federal Audit Clearing House by September 30, 2023 (nine months after the Authority year-end) and was not submitted by that date. Additionally, the FDS submission for the year ended December 31, 2022 was due for submission to HUD by the deadline of September 30, 2023 and was not submitted by that date. Questioned Costs None. Cause The Authority has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used to complete the Data Collection Form and FDS. Effect Because of the late submission of the audit reports, the reporting package and FDS was not made available to users in a timely manner. Recommendation We recommended that the Authority develop procedures to ensure that future reporting packages and FDS reports are submitted by the respective deadlines.
Criteria: In accordance with various subsections of 24 CFR Section 982, the Authority is required to: • obtain and review documentation supporting United States of America citizenship; • execute release and consent form approved by the Authority or the Department of Housing and Urban Development ("HUD") authorizing any depository or private source of income, or any Federal, State, or local agency, to furnish or release to HUD such information as the Authority or HUD determines to be necessary; and • verify income listed on the HUD Form 50058. The Authority is required to have controls in place to ensure recertifications are properly and timely completed. Condition: The Authority did not: • retain documentation supporting United States of America citizenship; • obtain proper authorization from tenants to release necessary information; and • obtain supporting documentation for the income listed on the HUD Form 50058. The control over review and approval of the annual recertifications was not consistently applied Context: Of the 40 selections made, the Authority did not: • retain documentation supporting United States of America citizenship for 10 selections; • obtain proper authorization from tenants to release necessary information for one selections; and • obtain supporting documentation for the income listed on the HUD Form 50058 for three selections. In reviewing the tenant files selected, review and approval of the annual recertifications was not evident in some files. Effect: The Authority was unable to demonstrate: • United States of America citizenship; • proper authorization from tenants to release necessary information; • the income listed on the HUD Form 50058 was accurate. Recertifications could be improperly completed or missed altogether. Cause: The Authority's internal controls in place did not prevent the Authority from missing required documentation, authorization, and income support in its tenant files. The control over review and approval of the annual recertifications was not properly implemented. Questioned Costs: Unknown Auditor's Recommendation: The Authority should review and enhance its internal controls to ensure: • management obtains and reviews documentation supporting United States of America citizenship; • tenants provide release forms prior to obtaining necessary documentation; • management verifies income listed on the HUD Form 50058; and • recertifications are consistently reviewed and approved.
Criteria: In accordance with various subsections of 24 CFR Section 982, the Authority is required to: • review utility rate data at least annually and update the utility allowance schedule as necessary; • inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards ("HQS"); and Condition: The Authority did not: • provide updated utility allowance schedules; • inspect the units to determine if they meet HQS; and Context: Of the 40 selections made, the Authority did not: • provide updated utility allowance schedules for three selections; • provide support for inspections to determine if the unit met HQS for 27 selections; and Effect: The Authority was unable to demonstrate: • the utility allowance schedules were accurate; • the units met HQS; and were accurate Cause: The Authority's internal controls in place did not prevent the Authority from missing required utility allowance and HQS compliance requirements. Questioned Costs: None. Auditor's Recommendation: The Authority should review and enhance its internal controls to ensure: • the utility allowance schedules are reviewed and updated as necessary at least annually; • units are inspected annually under HQS
Criteria: Wicomico County Housing Authority (the "Authority") should maintain appropriate controls over the payroll process to prevent or detect inaccurate or unsupported costs. Condition: The Authority's controls over the payroll process were not properly implemented, resulting in employees' timesheets not being reviewed or approved. Context: The Authority did not obtain a supervisor's review and approval of timesheets for hourly employees. Effect: Payroll could be misstated for hourly employees claiming hours or overtime worked and/or for employees paid a salary or wage that is unapproved by the Board. Cause: The Authority's internal controls over the payroll process were not appropriately implemented surrounding timesheet review and approval. Auditor's Recommendation: The Authority should review and enhance its internal controls to ensure every timesheet is reviewed and approved by the hourly employee's supervisor.
Criteria It is the auditee’s responsibility to ensure that the Data Collection Form and Financial Data Schedule (FDS) are submitted timely and accurately. The due date for the data collection form is the earlier of 30 days after receipt of the audit report or nine months after the Authority’s yearend, and the due date for the FDS submission is nine months after the Authority’s year-end. Condition The Data Collection Form for the year ended December 31, 2022, was due for submission to the Federal Audit Clearing House by September 30, 2023 (nine months after the Authority year-end) and was not submitted by that date. Additionally, the FDS submission for the year ended December 31, 2022 was due for submission to HUD by the deadline of September 30, 2023 and was not submitted by that date. Questioned Costs None. Cause The Authority has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used to complete the Data Collection Form and FDS. Effect Because of the late submission of the audit reports, the reporting package and FDS was not made available to users in a timely manner. Recommendation We recommended that the Authority develop procedures to ensure that future reporting packages and FDS reports are submitted by the respective deadlines.
Criteria: Wicomico County Housing Authority (the "Authority") should maintain appropriate controls over the payroll process to prevent or detect inaccurate or unsupported costs. Condition: The Authority's controls over the payroll process were not properly implemented, resulting in employees' timesheets not being reviewed or approved. Context: The Authority did not obtain a supervisor's review and approval of timesheets for hourly employees. Effect: Payroll could be misstated for hourly employees claiming hours or overtime worked and/or for employees paid a salary or wage that is unapproved by the Board. Cause: The Authority's internal controls over the payroll process were not appropriately implemented surrounding timesheet review and approval. Auditor's Recommendation: The Authority should review and enhance its internal controls to ensure every timesheet is reviewed and approved by the hourly employee's supervisor.
Criteria It is the auditee’s responsibility to ensure that the Data Collection Form and Financial Data Schedule (FDS) are submitted timely and accurately. The due date for the data collection form is the earlier of 30 days after receipt of the audit report or nine months after the Authority’s yearend, and the due date for the FDS submission is nine months after the Authority’s year-end. Condition The Data Collection Form for the year ended December 31, 2022, was due for submission to the Federal Audit Clearing House by September 30, 2023 (nine months after the Authority year-end) and was not submitted by that date. Additionally, the FDS submission for the year ended December 31, 2022 was due for submission to HUD by the deadline of September 30, 2023 and was not submitted by that date. Questioned Costs None. Cause The Authority has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used to complete the Data Collection Form and FDS. Effect Because of the late submission of the audit reports, the reporting package and FDS was not made available to users in a timely manner. Recommendation We recommended that the Authority develop procedures to ensure that future reporting packages and FDS reports are submitted by the respective deadlines.
Criteria: Wicomico County Housing Authority (the "Authority") should maintain appropriate controls over the payroll process to prevent or detect inaccurate or unsupported costs. Condition: The Authority's controls over the payroll process were not properly implemented, resulting in employees' timesheets not being reviewed or approved. Context: The Authority did not obtain a supervisor's review and approval of timesheets for hourly employees. Effect: Payroll could be misstated for hourly employees claiming hours or overtime worked and/or for employees paid a salary or wage that is unapproved by the Board. Cause: The Authority's internal controls over the payroll process were not appropriately implemented surrounding timesheet review and approval. Auditor's Recommendation: The Authority should review and enhance its internal controls to ensure every timesheet is reviewed and approved by the hourly employee's supervisor.