FAC Explorer

Audit 297792

FY End
2023-06-30
Total Expended
$18.43M
Findings
2
Programs
7
Organization: Housing Authority of the City of Brownsville (TX)
Year: 2023 Accepted: 2024-03-26
Auditor: Novogradac & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
384687 2023-001 Material Weakness - E
961129 2023-001 Material Weakness - E

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $16.87M Yes 1
14.850 Public and Indian Housing $687,891 - 0
14.872 Public Housing Capital Fund $324,460 - 0
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $236,481 - 0
14.896 Family Self-Sufficiency Program $185,870 - 0
14.879 Mainstream Vouchers $116,677 Yes 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $3,094 - 0

Contacts

Name Title Type
NM81NMREE5E5 Miguel Herrera Auditee
9562141535 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 minimus indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Federal Program Titles: Section 8 Housing Choice Vouchers & Emergency Housing Vouchers Federal Assistance Listing Numbers: 14.871 & 14. EHV Material Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness 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 member 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: There are approximately 2,739 units. Of a sample size of forty-two (42) tenant files, the following information was unavailable for examination at the time of audit: HUD-9886 Authorization for Release of Information form was missing in eighteen (18) files Verification of income was missing in one (1) file Our sample size is statistically valid. Known Questioned Costs: $40,589 Cause: There is a material weakness in internal controls over the compliance in the Section 8 Housing Choice Vouchers and Emergency Housing Vouchers programs for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers and Emergency Housing Vouchers programs are in material 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 assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor on the inspection of tenant files and has made arrangements to comply with the Section 8 Housing Choice Vouchers and Emergency Housing Vouchers programs.
Finding 2023-001
Federal Program Titles: Section 8 Housing Choice Vouchers & Emergency Housing Vouchers Federal Assistance Listing Numbers: 14.871 & 14. EHV Material Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness 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 member 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: There are approximately 2,739 units. Of a sample size of forty-two (42) tenant files, the following information was unavailable for examination at the time of audit: HUD-9886 Authorization for Release of Information form was missing in eighteen (18) files Verification of income was missing in one (1) file Our sample size is statistically valid. Known Questioned Costs: $40,589 Cause: There is a material weakness in internal controls over the compliance in the Section 8 Housing Choice Vouchers and Emergency Housing Vouchers programs for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers and Emergency Housing Vouchers programs are in material 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 assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor on the inspection of tenant files and has made arrangements to comply with the Section 8 Housing Choice Vouchers and Emergency Housing Vouchers programs.