FAC Explorer

Audit 297137

FY End
2023-06-30
Total Expended
$37.29M
Findings
2
Programs
3
Organization: Berkeley Housing Authority (CA)
Year: 2023 Accepted: 2024-03-25
Auditor: Novogradac & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
384054 2023-001 Significant Deficiency Yes E
960496 2023-001 Significant Deficiency Yes E

Programs

ALN Program Spent Major Findings
14.881 Moving to Work Demonstration Program $33.44M Yes 1
14.879 Mainstream Vouchers $2.90M - 0
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $943,022 - 0

Contacts

Name Title Type
H9QFQNKQJ7B8 Jesy Yturralde Auditee
5109815488 Rich Larsen Auditor
No contacts on file

Notes to SEFA

Accounting Policies: BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal grant activity of the Authority under programs of the federal government for the year ended June 30, 2023. The information in the 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 operations of the Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of the Authority. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the financial statements. SUMMARY OF SIGNIFICANT 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 available. De Minimis Rate Used: N Rate Explanation: INDIRECT COST RATE The Authority has not elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Finding 2023-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Moving to Work Demonstration Program Federal Catalog Numbers: 14.881 Noncompliance – E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: Of a sample size of twenty-eight (28) tenant files, the following information was unavailable for examination at the time of audit:  HUD-50058 form was missing in one (1) file  Verification of income and assets was missing in one (1) file Our sample size is statistically valid. Known Questioned Costs: $448 Cause: There is a significant deficiency in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Moving to Work Demonstration Program is in non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Authority Response: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Moving to Work Demonstration Program to ensure that established internal control policies are being followed on a timely basis.
Finding 2023-001
Finding 2023-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Moving to Work Demonstration Program Federal Catalog Numbers: 14.881 Noncompliance – E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: Of a sample size of twenty-eight (28) tenant files, the following information was unavailable for examination at the time of audit:  HUD-50058 form was missing in one (1) file  Verification of income and assets was missing in one (1) file Our sample size is statistically valid. Known Questioned Costs: $448 Cause: There is a significant deficiency in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Moving to Work Demonstration Program is in non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Authority Response: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Moving to Work Demonstration Program to ensure that established internal control policies are being followed on a timely basis.