Audit 299738

FY End
2023-06-30
Total Expended
$1.11M
Findings
2
Programs
2
Year: 2023 Accepted: 2024-03-28
Auditor: Rbt CPAS

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
387660 2023-002 Significant Deficiency Yes E
964102 2023-002 Significant Deficiency Yes E

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $742,459 Yes 1
14.872 Public Housing Capital Fund $363,784 - 0

Contacts

Name Title Type
X8MUM3TPBM45 Keith Burrell Auditee
8453527677 Jason Allen Auditor
No contacts on file

Notes to SEFA

Title: 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the Village of Spring Valley Housing Authority (the “Authority”) for the year ended June 30, 2023. Federal Awards received directly from Federal agencies, as well as Federal awards passed through other governmental agencies, are included in the Schedule. 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 the 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. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, 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 minimus cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the Village of Spring Valley Housing Authority (the “Authority”) for the year ended June 30, 2023. Federal Awards received directly from Federal agencies, as well as Federal awards passed through other governmental agencies, are included in the Schedule. 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 the 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. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: 2. INDIRECT COST RATE Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the Village of Spring Valley Housing Authority (the “Authority”) for the year ended June 30, 2023. Federal Awards received directly from Federal agencies, as well as Federal awards passed through other governmental agencies, are included in the Schedule. 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 the 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. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, 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 minimus cost rate as allowed under the Uniform Guidance. The Authority has elected not to use the 10 percent de minimus cost rate as allowed under the Uniform Guidance.
Title: 3. RECONCILIATION TO FINANCIAL STATEMENTS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the Village of Spring Valley Housing Authority (the “Authority”) for the year ended June 30, 2023. Federal Awards received directly from Federal agencies, as well as Federal awards passed through other governmental agencies, are included in the Schedule. 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 the 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. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, 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 minimus cost rate as allowed under the Uniform Guidance. The expenditures presented in the Schedule of Expenditures of Federal Awards reconcile to the federal aid reported in the Statement of Revenues, Expenses, and Changes in Net Position as follows: Federal expenditures as reported in the SEFA: $ 1,106,243 Reconciling items: None - Federal aid as reported in the Statement of Revenues, Expenses and Changes if Net Position, as Government Operating Grants, Other Government Grants, and Capital Grants: $ 1,106,243

Finding Details

2023-002 – Eligibility U.S. Department of Housing and Urban Development 14.850 – Public and Indian Housing Condition: During review of the Housing Choice Voucher program, RBT noted that two tenant files were missing the HUD-9886 form and one tenant file was missing the income verification (EIV) form. RBT also noted that the Authority was not appropriately documenting and maintaining documentation of the controls over Eligibility. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. As a condition of continued occupancy, PHAs must require the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility. Cause: The Authority does not have a central, uniform location to document the controls in place over Eligibility. Effect: Potential noncompliance if a control is missed. Questioned Costs: None identified. Perspective: Out of 25 tenant files reviewed, two were missing the HUD-9886 form, and one was missing the EIV form. Repeat Finding: This is a repeat finding. Recommendation: We recommend that the Authority establish a checklist for the Occupancy Representatives to use during the recertification process to ensure all compliance requirements are met. The checklist should be signed or initialed by the representative and maintained in the tenant’s file. This checklist will serve as documentation that all compliance requirements were verified for the tenant. Auditee’s Response: See corrective action plan.
2023-002 – Eligibility U.S. Department of Housing and Urban Development 14.850 – Public and Indian Housing Condition: During review of the Housing Choice Voucher program, RBT noted that two tenant files were missing the HUD-9886 form and one tenant file was missing the income verification (EIV) form. RBT also noted that the Authority was not appropriately documenting and maintaining documentation of the controls over Eligibility. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. As a condition of continued occupancy, PHAs must require the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility. Cause: The Authority does not have a central, uniform location to document the controls in place over Eligibility. Effect: Potential noncompliance if a control is missed. Questioned Costs: None identified. Perspective: Out of 25 tenant files reviewed, two were missing the HUD-9886 form, and one was missing the EIV form. Repeat Finding: This is a repeat finding. Recommendation: We recommend that the Authority establish a checklist for the Occupancy Representatives to use during the recertification process to ensure all compliance requirements are met. The checklist should be signed or initialed by the representative and maintained in the tenant’s file. This checklist will serve as documentation that all compliance requirements were verified for the tenant. Auditee’s Response: See corrective action plan.