FAC Explorer

Audit 304912

FY End
2023-09-30
Total Expended
$1.97M
Findings
6
Programs
4
Organization: Elk County Housing Authority (PA)
Year: 2023 Accepted: 2024-04-29
Auditor: Maher Duessel CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
394998 2023-001 Significant Deficiency Yes E
394999 2023-002 Significant Deficiency - N
395000 2023-003 Significant Deficiency - N
971440 2023-001 Significant Deficiency Yes E
971441 2023-002 Significant Deficiency - N
971442 2023-003 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $989,624 Yes 3
14.850 Public and Indian Housing $641,177 - 0
14.872 Public Housing Capital Fund $318,570 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $18,592 - 0

Contacts

Name Title Type
GCXHHL1GXL91 Amy Auman Auditee
8149652532 Brian T. McCall Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accompanying Schedule is presented using the accrual basis of accounting. Expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Authority has elected to not use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the Elk County Housing Authority (Authority) under programs of the federal government for the year ended September 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 net position, changes in net position, or cash flows of the Authority.

Finding Details

Finding 2023-001
Finding 2023-001 U.S. Department of Housing and Urban Development (HUD) Housing Voucher Cluster/Section 8 Housing Choice Voucher – ALN 14.871 Eligibility Repeat Finding from 2022 Condition: During our review of the HUD-50058 Family Report (HUD-50058), we noted two instances in which the correct income support and/or asset verifications were not used from the tenant’s file. The Elk County Housing Authority (Authority) did not have sufficient controls in place to ensure the required income support and/or asset verifications were used. Criteria: The Authority is required to prepare and submit a HUD-50058 form each time the Authority completes an admission, annual reexamination, portability move-in, or other change of unit for a family. The Authority is to obtain and document in the family file, third party verification of (1) reported family income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). The HUD-50058 and supporting documentation is utilized to determine eligibility and calculate tenant rent and rental/housing assistance payments for each program participant. Cause: The Authority did not have in place proper control procedures to ensure that HUD-50058 forms were completed accurately and that the required income support and/or asset verifications were used. Effect: HUD-50058 forms provide essential information to HUD and assist with the determination of program eligibility. In addition, the HUD-50058 form provides for the calculation of tenant rent and rental/housing assistance payments. A lack of functioning of internal controls could lead to inaccurate HUD-50058 forms. This could result in program participants or HUD being over- or under-charged tenant rent. Questioned Costs: Unknown Recommendation: We recommend that the Authority implement procedures to ensure all required income verification and other supporting documentation is obtained when completing the HUD-50058 forms, and to the extent they are not, that action be taken to resolve any issues, and that this action be documented. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding; see separate corrective action plan.
Finding 2023-002
Finding 2023-002 U.S. Department of Housing and Urban Development (HUD) Housing Voucher Cluster/Section 8 Housing Choice Voucher – ALN 14.871 Special Tests and Provisions Condition: The Authority did not have controls in place to ensure that all unit inspections which were delayed as a result of COVID-19 were performed as required in the Public and Indian Housing Notice 2021-14 (Notice) which was effective January 1, 2022. The Authority did not complete one unit inspection in accordance with the Notice. Criteria: In accordance with the Public and Indian Housing Notice 2021-14, the Authority should have performed all inspections delayed as a result of COVID-19 by June 30, 2022. Cause: The Authority’s internal controls and procedures in place did not ensure that the appropriate housing quality inspections were being performed, as required by HUD and the Uniform Guidance, after the COVID-19 related waivers expired. Effect: The housing quality inspection was not performed in accordance with HUD and the Uniform Guidance requirements, which could result in tenant units to not be in compliance. Failure to comply with grant requirements could jeopardize future funding. Questioned Costs: Unknown Recommendation: We recommend that the Authority implement procedures to ensure that all housing quality inspections are being performed throughout the year, as required by HUD and the Uniform Guidance. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding; see separate corrective action plan.
Finding 2023-003
Finding 2023-003 U.S. Department of Housing and Urban Development (HUD) Housing Voucher Cluster/Section 8 Housing Choice Voucher – ALN 14.871 Special Tests and Provisions Condition: During our review of failed housing quality inspections completed by the Authority, we noted two instances in which rent was not abated for units whose deficiencies were not corrected in the required timeframe. The Authority does not have proper controls in place to ensure that Housing Quality Standards (HQS) and enforcement were met. Criteria: For all units that fail to meet HQS, the Authority must require the owner to correct any life-threatening HQS within 24 hours after inspection and all other HQS deficiencies within 30 calendar days. If the owner does not correct the deficiencies, the Authority must abate rent payments to the owner by no later than the first of the month following the specified correction period or terminate the contract. Cause: The Authority’s internal controls in place were not sufficient to ensure that HQS standards were followed. Effect: Rent was not abated for two units whose deficiencies were not corrected in the required timeframe, which could result in unsafe housing for tenants. Failure to comply with grant requirements could jeopardize future funding. Questioned Costs: Unknown Recommendation: We recommend that the Authority implement procedures to ensure that the appropriate procedures are followed when housing quality inspection deficiencies are not resolved in the required timeframe, as required by HUD (24 CFR 882.516) and the Uniform Guidance. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding; see separate corrective action plan.
Finding 2023-001
Finding 2023-001 U.S. Department of Housing and Urban Development (HUD) Housing Voucher Cluster/Section 8 Housing Choice Voucher – ALN 14.871 Eligibility Repeat Finding from 2022 Condition: During our review of the HUD-50058 Family Report (HUD-50058), we noted two instances in which the correct income support and/or asset verifications were not used from the tenant’s file. The Elk County Housing Authority (Authority) did not have sufficient controls in place to ensure the required income support and/or asset verifications were used. Criteria: The Authority is required to prepare and submit a HUD-50058 form each time the Authority completes an admission, annual reexamination, portability move-in, or other change of unit for a family. The Authority is to obtain and document in the family file, third party verification of (1) reported family income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). The HUD-50058 and supporting documentation is utilized to determine eligibility and calculate tenant rent and rental/housing assistance payments for each program participant. Cause: The Authority did not have in place proper control procedures to ensure that HUD-50058 forms were completed accurately and that the required income support and/or asset verifications were used. Effect: HUD-50058 forms provide essential information to HUD and assist with the determination of program eligibility. In addition, the HUD-50058 form provides for the calculation of tenant rent and rental/housing assistance payments. A lack of functioning of internal controls could lead to inaccurate HUD-50058 forms. This could result in program participants or HUD being over- or under-charged tenant rent. Questioned Costs: Unknown Recommendation: We recommend that the Authority implement procedures to ensure all required income verification and other supporting documentation is obtained when completing the HUD-50058 forms, and to the extent they are not, that action be taken to resolve any issues, and that this action be documented. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding; see separate corrective action plan.
Finding 2023-002
Finding 2023-002 U.S. Department of Housing and Urban Development (HUD) Housing Voucher Cluster/Section 8 Housing Choice Voucher – ALN 14.871 Special Tests and Provisions Condition: The Authority did not have controls in place to ensure that all unit inspections which were delayed as a result of COVID-19 were performed as required in the Public and Indian Housing Notice 2021-14 (Notice) which was effective January 1, 2022. The Authority did not complete one unit inspection in accordance with the Notice. Criteria: In accordance with the Public and Indian Housing Notice 2021-14, the Authority should have performed all inspections delayed as a result of COVID-19 by June 30, 2022. Cause: The Authority’s internal controls and procedures in place did not ensure that the appropriate housing quality inspections were being performed, as required by HUD and the Uniform Guidance, after the COVID-19 related waivers expired. Effect: The housing quality inspection was not performed in accordance with HUD and the Uniform Guidance requirements, which could result in tenant units to not be in compliance. Failure to comply with grant requirements could jeopardize future funding. Questioned Costs: Unknown Recommendation: We recommend that the Authority implement procedures to ensure that all housing quality inspections are being performed throughout the year, as required by HUD and the Uniform Guidance. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding; see separate corrective action plan.
Finding 2023-003
Finding 2023-003 U.S. Department of Housing and Urban Development (HUD) Housing Voucher Cluster/Section 8 Housing Choice Voucher – ALN 14.871 Special Tests and Provisions Condition: During our review of failed housing quality inspections completed by the Authority, we noted two instances in which rent was not abated for units whose deficiencies were not corrected in the required timeframe. The Authority does not have proper controls in place to ensure that Housing Quality Standards (HQS) and enforcement were met. Criteria: For all units that fail to meet HQS, the Authority must require the owner to correct any life-threatening HQS within 24 hours after inspection and all other HQS deficiencies within 30 calendar days. If the owner does not correct the deficiencies, the Authority must abate rent payments to the owner by no later than the first of the month following the specified correction period or terminate the contract. Cause: The Authority’s internal controls in place were not sufficient to ensure that HQS standards were followed. Effect: Rent was not abated for two units whose deficiencies were not corrected in the required timeframe, which could result in unsafe housing for tenants. Failure to comply with grant requirements could jeopardize future funding. Questioned Costs: Unknown Recommendation: We recommend that the Authority implement procedures to ensure that the appropriate procedures are followed when housing quality inspection deficiencies are not resolved in the required timeframe, as required by HUD (24 CFR 882.516) and the Uniform Guidance. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding; see separate corrective action plan.