Audit 298608

FY End
2022-12-31
Total Expended
$11.02M
Findings
8
Programs
5
Year: 2022 Accepted: 2024-03-27

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
386171 2022-005 Material Weakness Yes N
386172 2022-006 Significant Deficiency - N
386173 2022-005 Material Weakness Yes N
386174 2022-006 Material Weakness - N
962613 2022-005 Material Weakness Yes N
962614 2022-006 Significant Deficiency - N
962615 2022-005 Material Weakness Yes N
962616 2022-006 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $7.70M Yes 2
14.850 Public and Indian Housing $2.12M - 0
14.879 Mainstream Vouchers $692,397 Yes 2
14.872 Public Housing Capital Fund $387,837 - 0
14.896 Family Self-Sufficiency Program $116,667 - 0

Contacts

Name Title Type
PDKBNSKLXC85 Caleb Milam Auditee
4347925544 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 December 31, 2022. 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

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs Federal Catalog Numbers: 14.871 and 14.879 Noncompliance – N. Special Tests and Provisions – Waiting List Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: Selections from the Waiting List. The PHA must have written policies in its Section 8 Housing Choice Vouchers Program administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants from the waiting list. Except for as provided in 24 CFR section 982.203 (Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: Based upon inspection of the waiting list provided to us during the time of audit, the new move-in list and discussions with management, it could not be determined with any certainty that certain new move-ins to the Section 8 Housing Choice Vouchers and Mainstream Vouchers programs were selected from the wait list in an order that is in accordance with the Authority’s Section 8 Administration policy. Context: Of a sample size of forty (40) Section 8 Housing Choice Vouchers' new move-ins and eight (8) Mainstream Vouchers' new move-ins, twenty-two (22) and one (1), respectively, could not be traced to the Authority's waiting lists. Our sample size is statistically valid. Known Questioned Costs: Section 8 Housing Choice Vouchers $98,464 Mainstream Vouchers $4,104 Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance. 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 Mainstream Vouchers Programs are in material non-compliance with the special tests and provisions type of compliance related to selection of applicants from the waiting list. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs Federal Assistance Listing Numbers: 14.871 and 14.879 Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: Yes Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions for the Section 8 Housing Choice Vouchers Program Material Weakness in Internal Control over Compliance for Special Tests and Provisions for the Mainstream Vouchers Program Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets the Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were failed inspections that did not pass reinspection within 30 days without penalty. Context: There are approximately two hundred and fifty-four (254) Section 8 Housing Choice Vouchers' units and fifteen (15) Mainstream Vouchers' units with failed inspections. Of a sample size of twenty-five (25) Section 8 Housing Choice Vouchers' and two (2) Mainstream Vouchers' failed inspections, seven (7) and one (1) failed inspections, respectively, did not pass reinspection within 30 days. Housing assistance payments were not abated nor was the tenant relocated. Our sample size is statistically valid. Known Questioned Costs: Section 8 Housing Choice Vouchers $4,901 Mainstream Vouchers $460 Cause: There is a significant deficiency for the Section 8 Housing Choice Vouchers Program and a material weakness for the Mainstream Vouchers Program in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly performed HQS inspections in compliance with program requirements. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance and the Mainstream Vouchers Program is in material non-compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs Federal Catalog Numbers: 14.871 and 14.879 Noncompliance – N. Special Tests and Provisions – Waiting List Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: Selections from the Waiting List. The PHA must have written policies in its Section 8 Housing Choice Vouchers Program administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants from the waiting list. Except for as provided in 24 CFR section 982.203 (Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: Based upon inspection of the waiting list provided to us during the time of audit, the new move-in list and discussions with management, it could not be determined with any certainty that certain new move-ins to the Section 8 Housing Choice Vouchers and Mainstream Vouchers programs were selected from the wait list in an order that is in accordance with the Authority’s Section 8 Administration policy. Context: Of a sample size of forty (40) Section 8 Housing Choice Vouchers' new move-ins and eight (8) Mainstream Vouchers' new move-ins, twenty-two (22) and one (1), respectively, could not be traced to the Authority's waiting lists. Our sample size is statistically valid. Known Questioned Costs: Section 8 Housing Choice Vouchers $98,464 Mainstream Vouchers $4,104 Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance. 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 Mainstream Vouchers Programs are in material non-compliance with the special tests and provisions type of compliance related to selection of applicants from the waiting list. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs Federal Assistance Listing Numbers: 14.871 and 14.879 Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: Yes Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions for the Section 8 Housing Choice Vouchers Program Material Weakness in Internal Control over Compliance for Special Tests and Provisions for the Mainstream Vouchers Program Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets the Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were failed inspections that did not pass reinspection within 30 days without penalty. Context: There are approximately two hundred and fifty-four (254) Section 8 Housing Choice Vouchers' units and fifteen (15) Mainstream Vouchers' units with failed inspections. Of a sample size of twenty-five (25) Section 8 Housing Choice Vouchers' and two (2) Mainstream Vouchers' failed inspections, seven (7) and one (1) failed inspections, respectively, did not pass reinspection within 30 days. Housing assistance payments were not abated nor was the tenant relocated. Our sample size is statistically valid. Known Questioned Costs: Section 8 Housing Choice Vouchers $4,901 Mainstream Vouchers $460 Cause: There is a significant deficiency for the Section 8 Housing Choice Vouchers Program and a material weakness for the Mainstream Vouchers Program in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly performed HQS inspections in compliance with program requirements. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance and the Mainstream Vouchers Program is in material non-compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs Federal Catalog Numbers: 14.871 and 14.879 Noncompliance – N. Special Tests and Provisions – Waiting List Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: Selections from the Waiting List. The PHA must have written policies in its Section 8 Housing Choice Vouchers Program administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants from the waiting list. Except for as provided in 24 CFR section 982.203 (Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: Based upon inspection of the waiting list provided to us during the time of audit, the new move-in list and discussions with management, it could not be determined with any certainty that certain new move-ins to the Section 8 Housing Choice Vouchers and Mainstream Vouchers programs were selected from the wait list in an order that is in accordance with the Authority’s Section 8 Administration policy. Context: Of a sample size of forty (40) Section 8 Housing Choice Vouchers' new move-ins and eight (8) Mainstream Vouchers' new move-ins, twenty-two (22) and one (1), respectively, could not be traced to the Authority's waiting lists. Our sample size is statistically valid. Known Questioned Costs: Section 8 Housing Choice Vouchers $98,464 Mainstream Vouchers $4,104 Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance. 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 Mainstream Vouchers Programs are in material non-compliance with the special tests and provisions type of compliance related to selection of applicants from the waiting list. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs Federal Assistance Listing Numbers: 14.871 and 14.879 Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: Yes Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions for the Section 8 Housing Choice Vouchers Program Material Weakness in Internal Control over Compliance for Special Tests and Provisions for the Mainstream Vouchers Program Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets the Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were failed inspections that did not pass reinspection within 30 days without penalty. Context: There are approximately two hundred and fifty-four (254) Section 8 Housing Choice Vouchers' units and fifteen (15) Mainstream Vouchers' units with failed inspections. Of a sample size of twenty-five (25) Section 8 Housing Choice Vouchers' and two (2) Mainstream Vouchers' failed inspections, seven (7) and one (1) failed inspections, respectively, did not pass reinspection within 30 days. Housing assistance payments were not abated nor was the tenant relocated. Our sample size is statistically valid. Known Questioned Costs: Section 8 Housing Choice Vouchers $4,901 Mainstream Vouchers $460 Cause: There is a significant deficiency for the Section 8 Housing Choice Vouchers Program and a material weakness for the Mainstream Vouchers Program in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly performed HQS inspections in compliance with program requirements. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance and the Mainstream Vouchers Program is in material non-compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs Federal Catalog Numbers: 14.871 and 14.879 Noncompliance – N. Special Tests and Provisions – Waiting List Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: Selections from the Waiting List. The PHA must have written policies in its Section 8 Housing Choice Vouchers Program administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants from the waiting list. Except for as provided in 24 CFR section 982.203 (Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: Based upon inspection of the waiting list provided to us during the time of audit, the new move-in list and discussions with management, it could not be determined with any certainty that certain new move-ins to the Section 8 Housing Choice Vouchers and Mainstream Vouchers programs were selected from the wait list in an order that is in accordance with the Authority’s Section 8 Administration policy. Context: Of a sample size of forty (40) Section 8 Housing Choice Vouchers' new move-ins and eight (8) Mainstream Vouchers' new move-ins, twenty-two (22) and one (1), respectively, could not be traced to the Authority's waiting lists. Our sample size is statistically valid. Known Questioned Costs: Section 8 Housing Choice Vouchers $98,464 Mainstream Vouchers $4,104 Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance. 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 Mainstream Vouchers Programs are in material non-compliance with the special tests and provisions type of compliance related to selection of applicants from the waiting list. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs Federal Assistance Listing Numbers: 14.871 and 14.879 Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: Yes Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions for the Section 8 Housing Choice Vouchers Program Material Weakness in Internal Control over Compliance for Special Tests and Provisions for the Mainstream Vouchers Program Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets the Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were failed inspections that did not pass reinspection within 30 days without penalty. Context: There are approximately two hundred and fifty-four (254) Section 8 Housing Choice Vouchers' units and fifteen (15) Mainstream Vouchers' units with failed inspections. Of a sample size of twenty-five (25) Section 8 Housing Choice Vouchers' and two (2) Mainstream Vouchers' failed inspections, seven (7) and one (1) failed inspections, respectively, did not pass reinspection within 30 days. Housing assistance payments were not abated nor was the tenant relocated. Our sample size is statistically valid. Known Questioned Costs: Section 8 Housing Choice Vouchers $4,901 Mainstream Vouchers $460 Cause: There is a significant deficiency for the Section 8 Housing Choice Vouchers Program and a material weakness for the Mainstream Vouchers Program in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly performed HQS inspections in compliance with program requirements. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance and the Mainstream Vouchers Program is in material non-compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.