FAC Explorer

Audit 303910

FY End
2020-09-30
Total Expended
$2.18M
Findings
24
Programs
5
Organization: Gloversville Housing Authority (RI)
Year: 2020 Accepted: 2024-04-18
Auditor: Marcum LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
393733 2020-002 Material Weakness - P
393734 2020-002 Material Weakness - P
393735 2020-002 Material Weakness - P
393736 2020-002 Material Weakness - P
393737 2020-003 Material Weakness - E
393738 2020-003 Material Weakness - E
393739 2020-003 Material Weakness - E
393740 2020-003 Material Weakness - E
393741 2020-004 Material Weakness - L
393742 2020-004 Material Weakness - L
393743 2020-004 Material Weakness - L
393744 2020-004 Material Weakness - L
970175 2020-002 Material Weakness - P
970176 2020-002 Material Weakness - P
970177 2020-002 Material Weakness - P
970178 2020-002 Material Weakness - P
970179 2020-003 Material Weakness - E
970180 2020-003 Material Weakness - E
970181 2020-003 Material Weakness - E
970182 2020-003 Material Weakness - E
970183 2020-004 Material Weakness - L
970184 2020-004 Material Weakness - L
970185 2020-004 Material Weakness - L
970186 2020-004 Material Weakness - L

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $744,364 - 0
14.872 Public Housing Capital Fund $132,376 - 0
14.896 Family Self-Sufficiency Program $98,093 - 0
14.871 Section 8 Housing Choice Vouchers $14,407 Yes 3
14.879 Mainstream Vouchers $2,018 Yes 3

Contacts

Name Title Type
N578D1S7JSF3 Kayla Potter Auditee
5187737308 Michael Guyder Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – BASIS OF PRESENTATION Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Gloversville Housing Authority, under programs of the federal government for the year ended September 30, 2020. 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 Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Gloversville Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Gloversville Housing Authority. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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. For performance-based awards, expenditures reported represent amounts earned. De Minimis Rate Used: N Rate Explanation: The Gloversville Housing Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Gloversville Housing Authority, under programs of the federal government for the year ended September 30, 2020. 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 Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Gloversville Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Gloversville Housing Authority.
Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Gloversville Housing Authority, under programs of the federal government for the year ended September 30, 2020. 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 Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Gloversville Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Gloversville Housing Authority. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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. For performance-based awards, expenditures reported represent amounts earned. De Minimis Rate Used: N Rate Explanation: The Gloversville Housing Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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. For performance-based awards, expenditures reported represent amounts earned.
Title: NOTE 3 – INDIRECT COST RATE Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Gloversville Housing Authority, under programs of the federal government for the year ended September 30, 2020. 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 Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Gloversville Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Gloversville Housing Authority. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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. For performance-based awards, expenditures reported represent amounts earned. De Minimis Rate Used: N Rate Explanation: The Gloversville Housing Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Gloversville Housing Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2020-002
2020-002– INTERNAL CONTROL OVER COMPLIANCE MATERIAL WEAKNESS CRITERIA Per Uniform Guidance (2 CFR Part 200.302), the grantee must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the grantee is managing the Federal award in compliance with statutes, regulations, and the terms and conditions of the Federal award. CONDITION The Authority did not maintain proper monitoring, communication and control activities to ensure adherence to the Authority’s key administrative policies including procurement, occupancy and the HCV administrative plan. The Authority outsourced the management of the Housing Choice Voucher and Mainstream Voucher programs and did not properly monitor the activities of the those programs. The third party management company adopted and maintained policies and procedures for the Authority without board approval. CAUSE The Authority did not have proper oversight of their Housing Choice Voucher and Mainstream Voucher programs. EFFECT This deficiency in internal controls resulted in material noncompliance, which could affect the Authority's ability to manage and report on Federal awards accurately. QUESTIONED COSTS None noted. CONTEXT We reviewed the Authority’s internal controls over compliance with federal awards. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority’s management take an active role in reviewing the their policies and monitoring the Authority’s compliance with those policies. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2020-002
2020-002– INTERNAL CONTROL OVER COMPLIANCE MATERIAL WEAKNESS CRITERIA Per Uniform Guidance (2 CFR Part 200.302), the grantee must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the grantee is managing the Federal award in compliance with statutes, regulations, and the terms and conditions of the Federal award. CONDITION The Authority did not maintain proper monitoring, communication and control activities to ensure adherence to the Authority’s key administrative policies including procurement, occupancy and the HCV administrative plan. The Authority outsourced the management of the Housing Choice Voucher and Mainstream Voucher programs and did not properly monitor the activities of the those programs. The third party management company adopted and maintained policies and procedures for the Authority without board approval. CAUSE The Authority did not have proper oversight of their Housing Choice Voucher and Mainstream Voucher programs. EFFECT This deficiency in internal controls resulted in material noncompliance, which could affect the Authority's ability to manage and report on Federal awards accurately. QUESTIONED COSTS None noted. CONTEXT We reviewed the Authority’s internal controls over compliance with federal awards. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority’s management take an active role in reviewing the their policies and monitoring the Authority’s compliance with those policies. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2020-002
2020-002– INTERNAL CONTROL OVER COMPLIANCE MATERIAL WEAKNESS CRITERIA Per Uniform Guidance (2 CFR Part 200.302), the grantee must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the grantee is managing the Federal award in compliance with statutes, regulations, and the terms and conditions of the Federal award. CONDITION The Authority did not maintain proper monitoring, communication and control activities to ensure adherence to the Authority’s key administrative policies including procurement, occupancy and the HCV administrative plan. The Authority outsourced the management of the Housing Choice Voucher and Mainstream Voucher programs and did not properly monitor the activities of the those programs. The third party management company adopted and maintained policies and procedures for the Authority without board approval. CAUSE The Authority did not have proper oversight of their Housing Choice Voucher and Mainstream Voucher programs. EFFECT This deficiency in internal controls resulted in material noncompliance, which could affect the Authority's ability to manage and report on Federal awards accurately. QUESTIONED COSTS None noted. CONTEXT We reviewed the Authority’s internal controls over compliance with federal awards. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority’s management take an active role in reviewing the their policies and monitoring the Authority’s compliance with those policies. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2020-002
2020-002– INTERNAL CONTROL OVER COMPLIANCE MATERIAL WEAKNESS CRITERIA Per Uniform Guidance (2 CFR Part 200.302), the grantee must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the grantee is managing the Federal award in compliance with statutes, regulations, and the terms and conditions of the Federal award. CONDITION The Authority did not maintain proper monitoring, communication and control activities to ensure adherence to the Authority’s key administrative policies including procurement, occupancy and the HCV administrative plan. The Authority outsourced the management of the Housing Choice Voucher and Mainstream Voucher programs and did not properly monitor the activities of the those programs. The third party management company adopted and maintained policies and procedures for the Authority without board approval. CAUSE The Authority did not have proper oversight of their Housing Choice Voucher and Mainstream Voucher programs. EFFECT This deficiency in internal controls resulted in material noncompliance, which could affect the Authority's ability to manage and report on Federal awards accurately. QUESTIONED COSTS None noted. CONTEXT We reviewed the Authority’s internal controls over compliance with federal awards. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority’s management take an active role in reviewing the their policies and monitoring the Authority’s compliance with those policies. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2020-003
2020-003– ELIGIBILITY MATERIAL WEAKNESS/NONCOMPLIANCE U.S. Department of Housing and Urban Development CFDA #:14.871/ 14.879 – Housing Voucher Cluster CRITERIA PHA responsibility for reexamination and verification. (1) The PHA must conduct a reexamination of family income and composition at least annually. (2) The PHA must obtain and document in the tenant file third-party verification of the following factors, or must document in the tenant file why third-party verification was not available: (i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income. (24 CFR 982.516) CONDITION As a result of our audit procedures, we identified the following exceptions in our testing:  Six (6) instances of income, asset or medical expense miscalculation or insufficient verification  Twelve (12) instances of incorrect utility allowance  Two (2) instances of incorrect payment standard CAUSE The Authority did not properly oversee the administration of the Housing Choice Voucher and Mainstream Voucher programs. EFFECT The Authority is potentially incorrectly calculating and adjusting tenant rent and housing assistance payments. QUESTIONED COSTS None identified. CONTEXT We selected a sample of 25 from a population of 251. This was not a statistically valid sample. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority provide training for the performance of reexamination procedures. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2020-003
2020-003– ELIGIBILITY MATERIAL WEAKNESS/NONCOMPLIANCE U.S. Department of Housing and Urban Development CFDA #:14.871/ 14.879 – Housing Voucher Cluster CRITERIA PHA responsibility for reexamination and verification. (1) The PHA must conduct a reexamination of family income and composition at least annually. (2) The PHA must obtain and document in the tenant file third-party verification of the following factors, or must document in the tenant file why third-party verification was not available: (i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income. (24 CFR 982.516) CONDITION As a result of our audit procedures, we identified the following exceptions in our testing:  Six (6) instances of income, asset or medical expense miscalculation or insufficient verification  Twelve (12) instances of incorrect utility allowance  Two (2) instances of incorrect payment standard CAUSE The Authority did not properly oversee the administration of the Housing Choice Voucher and Mainstream Voucher programs. EFFECT The Authority is potentially incorrectly calculating and adjusting tenant rent and housing assistance payments. QUESTIONED COSTS None identified. CONTEXT We selected a sample of 25 from a population of 251. This was not a statistically valid sample. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority provide training for the performance of reexamination procedures. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2020-003
2020-003– ELIGIBILITY MATERIAL WEAKNESS/NONCOMPLIANCE U.S. Department of Housing and Urban Development CFDA #:14.871/ 14.879 – Housing Voucher Cluster CRITERIA PHA responsibility for reexamination and verification. (1) The PHA must conduct a reexamination of family income and composition at least annually. (2) The PHA must obtain and document in the tenant file third-party verification of the following factors, or must document in the tenant file why third-party verification was not available: (i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income. (24 CFR 982.516) CONDITION As a result of our audit procedures, we identified the following exceptions in our testing:  Six (6) instances of income, asset or medical expense miscalculation or insufficient verification  Twelve (12) instances of incorrect utility allowance  Two (2) instances of incorrect payment standard CAUSE The Authority did not properly oversee the administration of the Housing Choice Voucher and Mainstream Voucher programs. EFFECT The Authority is potentially incorrectly calculating and adjusting tenant rent and housing assistance payments. QUESTIONED COSTS None identified. CONTEXT We selected a sample of 25 from a population of 251. This was not a statistically valid sample. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority provide training for the performance of reexamination procedures. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2020-003
2020-003– ELIGIBILITY MATERIAL WEAKNESS/NONCOMPLIANCE U.S. Department of Housing and Urban Development CFDA #:14.871/ 14.879 – Housing Voucher Cluster CRITERIA PHA responsibility for reexamination and verification. (1) The PHA must conduct a reexamination of family income and composition at least annually. (2) The PHA must obtain and document in the tenant file third-party verification of the following factors, or must document in the tenant file why third-party verification was not available: (i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income. (24 CFR 982.516) CONDITION As a result of our audit procedures, we identified the following exceptions in our testing:  Six (6) instances of income, asset or medical expense miscalculation or insufficient verification  Twelve (12) instances of incorrect utility allowance  Two (2) instances of incorrect payment standard CAUSE The Authority did not properly oversee the administration of the Housing Choice Voucher and Mainstream Voucher programs. EFFECT The Authority is potentially incorrectly calculating and adjusting tenant rent and housing assistance payments. QUESTIONED COSTS None identified. CONTEXT We selected a sample of 25 from a population of 251. This was not a statistically valid sample. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority provide training for the performance of reexamination procedures. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2020-004
2020-004– REPORTING MATERIAL WEAKNESS/NONCOMPLIANCE U.S. Department of Housing and Urban Development CFDA #:14.871 / 14.879 – Housing Voucher Cluster CRITERIA Financial Reports (0MB No. 2535-0107) - Financial Assessment Sub- system, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The FASSPH system is one of HUD's main monitoring and oversight systems for the HCVP. CONDITION The audited FDS was required to be submitted to HUD by September 30, 2021. CAUSE The Authority’s internal control processes were not sufficient to ensure the timely filing of the unaudited FDS. EFFECT As a result of not submitting the FDS timely, HUD was limited in its ability to conduct monitoring and oversight of federal programs. QUESTIONED COSTS None identified. CONTEXT The Authority submits the unaudited FDS annually. Our testing of the reporting requirement was limited to the single occurrence of the annual filing. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority ensure its year-end closing process is sufficient to allow for the timely filing of the unaudited FDS. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2020-004
2020-004– REPORTING MATERIAL WEAKNESS/NONCOMPLIANCE U.S. Department of Housing and Urban Development CFDA #:14.871 / 14.879 – Housing Voucher Cluster CRITERIA Financial Reports (0MB No. 2535-0107) - Financial Assessment Sub- system, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The FASSPH system is one of HUD's main monitoring and oversight systems for the HCVP. CONDITION The audited FDS was required to be submitted to HUD by September 30, 2021. CAUSE The Authority’s internal control processes were not sufficient to ensure the timely filing of the unaudited FDS. EFFECT As a result of not submitting the FDS timely, HUD was limited in its ability to conduct monitoring and oversight of federal programs. QUESTIONED COSTS None identified. CONTEXT The Authority submits the unaudited FDS annually. Our testing of the reporting requirement was limited to the single occurrence of the annual filing. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority ensure its year-end closing process is sufficient to allow for the timely filing of the unaudited FDS. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2020-004
2020-004– REPORTING MATERIAL WEAKNESS/NONCOMPLIANCE U.S. Department of Housing and Urban Development CFDA #:14.871 / 14.879 – Housing Voucher Cluster CRITERIA Financial Reports (0MB No. 2535-0107) - Financial Assessment Sub- system, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The FASSPH system is one of HUD's main monitoring and oversight systems for the HCVP. CONDITION The audited FDS was required to be submitted to HUD by September 30, 2021. CAUSE The Authority’s internal control processes were not sufficient to ensure the timely filing of the unaudited FDS. EFFECT As a result of not submitting the FDS timely, HUD was limited in its ability to conduct monitoring and oversight of federal programs. QUESTIONED COSTS None identified. CONTEXT The Authority submits the unaudited FDS annually. Our testing of the reporting requirement was limited to the single occurrence of the annual filing. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority ensure its year-end closing process is sufficient to allow for the timely filing of the unaudited FDS. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2020-004
2020-004– REPORTING MATERIAL WEAKNESS/NONCOMPLIANCE U.S. Department of Housing and Urban Development CFDA #:14.871 / 14.879 – Housing Voucher Cluster CRITERIA Financial Reports (0MB No. 2535-0107) - Financial Assessment Sub- system, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The FASSPH system is one of HUD's main monitoring and oversight systems for the HCVP. CONDITION The audited FDS was required to be submitted to HUD by September 30, 2021. CAUSE The Authority’s internal control processes were not sufficient to ensure the timely filing of the unaudited FDS. EFFECT As a result of not submitting the FDS timely, HUD was limited in its ability to conduct monitoring and oversight of federal programs. QUESTIONED COSTS None identified. CONTEXT The Authority submits the unaudited FDS annually. Our testing of the reporting requirement was limited to the single occurrence of the annual filing. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority ensure its year-end closing process is sufficient to allow for the timely filing of the unaudited FDS. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2020-002
2020-002– INTERNAL CONTROL OVER COMPLIANCE MATERIAL WEAKNESS CRITERIA Per Uniform Guidance (2 CFR Part 200.302), the grantee must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the grantee is managing the Federal award in compliance with statutes, regulations, and the terms and conditions of the Federal award. CONDITION The Authority did not maintain proper monitoring, communication and control activities to ensure adherence to the Authority’s key administrative policies including procurement, occupancy and the HCV administrative plan. The Authority outsourced the management of the Housing Choice Voucher and Mainstream Voucher programs and did not properly monitor the activities of the those programs. The third party management company adopted and maintained policies and procedures for the Authority without board approval. CAUSE The Authority did not have proper oversight of their Housing Choice Voucher and Mainstream Voucher programs. EFFECT This deficiency in internal controls resulted in material noncompliance, which could affect the Authority's ability to manage and report on Federal awards accurately. QUESTIONED COSTS None noted. CONTEXT We reviewed the Authority’s internal controls over compliance with federal awards. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority’s management take an active role in reviewing the their policies and monitoring the Authority’s compliance with those policies. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2020-002
2020-002– INTERNAL CONTROL OVER COMPLIANCE MATERIAL WEAKNESS CRITERIA Per Uniform Guidance (2 CFR Part 200.302), the grantee must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the grantee is managing the Federal award in compliance with statutes, regulations, and the terms and conditions of the Federal award. CONDITION The Authority did not maintain proper monitoring, communication and control activities to ensure adherence to the Authority’s key administrative policies including procurement, occupancy and the HCV administrative plan. The Authority outsourced the management of the Housing Choice Voucher and Mainstream Voucher programs and did not properly monitor the activities of the those programs. The third party management company adopted and maintained policies and procedures for the Authority without board approval. CAUSE The Authority did not have proper oversight of their Housing Choice Voucher and Mainstream Voucher programs. EFFECT This deficiency in internal controls resulted in material noncompliance, which could affect the Authority's ability to manage and report on Federal awards accurately. QUESTIONED COSTS None noted. CONTEXT We reviewed the Authority’s internal controls over compliance with federal awards. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority’s management take an active role in reviewing the their policies and monitoring the Authority’s compliance with those policies. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2020-002
2020-002– INTERNAL CONTROL OVER COMPLIANCE MATERIAL WEAKNESS CRITERIA Per Uniform Guidance (2 CFR Part 200.302), the grantee must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the grantee is managing the Federal award in compliance with statutes, regulations, and the terms and conditions of the Federal award. CONDITION The Authority did not maintain proper monitoring, communication and control activities to ensure adherence to the Authority’s key administrative policies including procurement, occupancy and the HCV administrative plan. The Authority outsourced the management of the Housing Choice Voucher and Mainstream Voucher programs and did not properly monitor the activities of the those programs. The third party management company adopted and maintained policies and procedures for the Authority without board approval. CAUSE The Authority did not have proper oversight of their Housing Choice Voucher and Mainstream Voucher programs. EFFECT This deficiency in internal controls resulted in material noncompliance, which could affect the Authority's ability to manage and report on Federal awards accurately. QUESTIONED COSTS None noted. CONTEXT We reviewed the Authority’s internal controls over compliance with federal awards. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority’s management take an active role in reviewing the their policies and monitoring the Authority’s compliance with those policies. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2020-002
2020-002– INTERNAL CONTROL OVER COMPLIANCE MATERIAL WEAKNESS CRITERIA Per Uniform Guidance (2 CFR Part 200.302), the grantee must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the grantee is managing the Federal award in compliance with statutes, regulations, and the terms and conditions of the Federal award. CONDITION The Authority did not maintain proper monitoring, communication and control activities to ensure adherence to the Authority’s key administrative policies including procurement, occupancy and the HCV administrative plan. The Authority outsourced the management of the Housing Choice Voucher and Mainstream Voucher programs and did not properly monitor the activities of the those programs. The third party management company adopted and maintained policies and procedures for the Authority without board approval. CAUSE The Authority did not have proper oversight of their Housing Choice Voucher and Mainstream Voucher programs. EFFECT This deficiency in internal controls resulted in material noncompliance, which could affect the Authority's ability to manage and report on Federal awards accurately. QUESTIONED COSTS None noted. CONTEXT We reviewed the Authority’s internal controls over compliance with federal awards. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority’s management take an active role in reviewing the their policies and monitoring the Authority’s compliance with those policies. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2020-003
2020-003– ELIGIBILITY MATERIAL WEAKNESS/NONCOMPLIANCE U.S. Department of Housing and Urban Development CFDA #:14.871/ 14.879 – Housing Voucher Cluster CRITERIA PHA responsibility for reexamination and verification. (1) The PHA must conduct a reexamination of family income and composition at least annually. (2) The PHA must obtain and document in the tenant file third-party verification of the following factors, or must document in the tenant file why third-party verification was not available: (i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income. (24 CFR 982.516) CONDITION As a result of our audit procedures, we identified the following exceptions in our testing:  Six (6) instances of income, asset or medical expense miscalculation or insufficient verification  Twelve (12) instances of incorrect utility allowance  Two (2) instances of incorrect payment standard CAUSE The Authority did not properly oversee the administration of the Housing Choice Voucher and Mainstream Voucher programs. EFFECT The Authority is potentially incorrectly calculating and adjusting tenant rent and housing assistance payments. QUESTIONED COSTS None identified. CONTEXT We selected a sample of 25 from a population of 251. This was not a statistically valid sample. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority provide training for the performance of reexamination procedures. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2020-003
2020-003– ELIGIBILITY MATERIAL WEAKNESS/NONCOMPLIANCE U.S. Department of Housing and Urban Development CFDA #:14.871/ 14.879 – Housing Voucher Cluster CRITERIA PHA responsibility for reexamination and verification. (1) The PHA must conduct a reexamination of family income and composition at least annually. (2) The PHA must obtain and document in the tenant file third-party verification of the following factors, or must document in the tenant file why third-party verification was not available: (i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income. (24 CFR 982.516) CONDITION As a result of our audit procedures, we identified the following exceptions in our testing:  Six (6) instances of income, asset or medical expense miscalculation or insufficient verification  Twelve (12) instances of incorrect utility allowance  Two (2) instances of incorrect payment standard CAUSE The Authority did not properly oversee the administration of the Housing Choice Voucher and Mainstream Voucher programs. EFFECT The Authority is potentially incorrectly calculating and adjusting tenant rent and housing assistance payments. QUESTIONED COSTS None identified. CONTEXT We selected a sample of 25 from a population of 251. This was not a statistically valid sample. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority provide training for the performance of reexamination procedures. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2020-003
2020-003– ELIGIBILITY MATERIAL WEAKNESS/NONCOMPLIANCE U.S. Department of Housing and Urban Development CFDA #:14.871/ 14.879 – Housing Voucher Cluster CRITERIA PHA responsibility for reexamination and verification. (1) The PHA must conduct a reexamination of family income and composition at least annually. (2) The PHA must obtain and document in the tenant file third-party verification of the following factors, or must document in the tenant file why third-party verification was not available: (i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income. (24 CFR 982.516) CONDITION As a result of our audit procedures, we identified the following exceptions in our testing:  Six (6) instances of income, asset or medical expense miscalculation or insufficient verification  Twelve (12) instances of incorrect utility allowance  Two (2) instances of incorrect payment standard CAUSE The Authority did not properly oversee the administration of the Housing Choice Voucher and Mainstream Voucher programs. EFFECT The Authority is potentially incorrectly calculating and adjusting tenant rent and housing assistance payments. QUESTIONED COSTS None identified. CONTEXT We selected a sample of 25 from a population of 251. This was not a statistically valid sample. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority provide training for the performance of reexamination procedures. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2020-003
2020-003– ELIGIBILITY MATERIAL WEAKNESS/NONCOMPLIANCE U.S. Department of Housing and Urban Development CFDA #:14.871/ 14.879 – Housing Voucher Cluster CRITERIA PHA responsibility for reexamination and verification. (1) The PHA must conduct a reexamination of family income and composition at least annually. (2) The PHA must obtain and document in the tenant file third-party verification of the following factors, or must document in the tenant file why third-party verification was not available: (i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income. (24 CFR 982.516) CONDITION As a result of our audit procedures, we identified the following exceptions in our testing:  Six (6) instances of income, asset or medical expense miscalculation or insufficient verification  Twelve (12) instances of incorrect utility allowance  Two (2) instances of incorrect payment standard CAUSE The Authority did not properly oversee the administration of the Housing Choice Voucher and Mainstream Voucher programs. EFFECT The Authority is potentially incorrectly calculating and adjusting tenant rent and housing assistance payments. QUESTIONED COSTS None identified. CONTEXT We selected a sample of 25 from a population of 251. This was not a statistically valid sample. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority provide training for the performance of reexamination procedures. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2020-004
2020-004– REPORTING MATERIAL WEAKNESS/NONCOMPLIANCE U.S. Department of Housing and Urban Development CFDA #:14.871 / 14.879 – Housing Voucher Cluster CRITERIA Financial Reports (0MB No. 2535-0107) - Financial Assessment Sub- system, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The FASSPH system is one of HUD's main monitoring and oversight systems for the HCVP. CONDITION The audited FDS was required to be submitted to HUD by September 30, 2021. CAUSE The Authority’s internal control processes were not sufficient to ensure the timely filing of the unaudited FDS. EFFECT As a result of not submitting the FDS timely, HUD was limited in its ability to conduct monitoring and oversight of federal programs. QUESTIONED COSTS None identified. CONTEXT The Authority submits the unaudited FDS annually. Our testing of the reporting requirement was limited to the single occurrence of the annual filing. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority ensure its year-end closing process is sufficient to allow for the timely filing of the unaudited FDS. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2020-004
2020-004– REPORTING MATERIAL WEAKNESS/NONCOMPLIANCE U.S. Department of Housing and Urban Development CFDA #:14.871 / 14.879 – Housing Voucher Cluster CRITERIA Financial Reports (0MB No. 2535-0107) - Financial Assessment Sub- system, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The FASSPH system is one of HUD's main monitoring and oversight systems for the HCVP. CONDITION The audited FDS was required to be submitted to HUD by September 30, 2021. CAUSE The Authority’s internal control processes were not sufficient to ensure the timely filing of the unaudited FDS. EFFECT As a result of not submitting the FDS timely, HUD was limited in its ability to conduct monitoring and oversight of federal programs. QUESTIONED COSTS None identified. CONTEXT The Authority submits the unaudited FDS annually. Our testing of the reporting requirement was limited to the single occurrence of the annual filing. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority ensure its year-end closing process is sufficient to allow for the timely filing of the unaudited FDS. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2020-004
2020-004– REPORTING MATERIAL WEAKNESS/NONCOMPLIANCE U.S. Department of Housing and Urban Development CFDA #:14.871 / 14.879 – Housing Voucher Cluster CRITERIA Financial Reports (0MB No. 2535-0107) - Financial Assessment Sub- system, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The FASSPH system is one of HUD's main monitoring and oversight systems for the HCVP. CONDITION The audited FDS was required to be submitted to HUD by September 30, 2021. CAUSE The Authority’s internal control processes were not sufficient to ensure the timely filing of the unaudited FDS. EFFECT As a result of not submitting the FDS timely, HUD was limited in its ability to conduct monitoring and oversight of federal programs. QUESTIONED COSTS None identified. CONTEXT The Authority submits the unaudited FDS annually. Our testing of the reporting requirement was limited to the single occurrence of the annual filing. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority ensure its year-end closing process is sufficient to allow for the timely filing of the unaudited FDS. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2020-004
2020-004– REPORTING MATERIAL WEAKNESS/NONCOMPLIANCE U.S. Department of Housing and Urban Development CFDA #:14.871 / 14.879 – Housing Voucher Cluster CRITERIA Financial Reports (0MB No. 2535-0107) - Financial Assessment Sub- system, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The FASSPH system is one of HUD's main monitoring and oversight systems for the HCVP. CONDITION The audited FDS was required to be submitted to HUD by September 30, 2021. CAUSE The Authority’s internal control processes were not sufficient to ensure the timely filing of the unaudited FDS. EFFECT As a result of not submitting the FDS timely, HUD was limited in its ability to conduct monitoring and oversight of federal programs. QUESTIONED COSTS None identified. CONTEXT The Authority submits the unaudited FDS annually. Our testing of the reporting requirement was limited to the single occurrence of the annual filing. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority ensure its year-end closing process is sufficient to allow for the timely filing of the unaudited FDS. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.