Audit 307329

FY End
2023-09-30
Total Expended
$16.51M
Findings
2
Programs
3
Organization: Scranton Housing Authority (PA)
Year: 2023 Accepted: 2024-05-28

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
398588 2023-001 - - N
975030 2023-001 - - N

Programs

ALN Program Spent Major Findings
14.850 Low Rent Public Housing $8.07M - 0
14.871 Housing Choice Vouchers $5.73M Yes 1
14.872 Public Housing Capital Fund Program $2.71M - 0

Contacts

Name Title Type
LT35R5LP12V5 Scott Lombardi Auditee
5703484408 Donald Jump Auditor
No contacts on file

Notes to SEFA

Title: 1. Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Scranton Housing Authority and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance, Audits of States, Local Governments, and Non- Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The 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 includes the federal grant activity of the Scranton Housing Authority and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance, Audits of States, Local Governments, and Non- Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements.
Title: 2. Non-Cash Federal Assistance Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Scranton Housing Authority and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance, Audits of States, Local Governments, and Non- Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Authority did not receive any non-cash Federal assistance for the year ended September 30, 2023.
Title: 3. Loan Guarantees Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Scranton Housing Authority and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance, Audits of States, Local Governments, and Non- Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. At September 30, 2023, the Authority is not the guarantor of any loans outstanding.
Title: 4. Indirect Cost Rate Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Scranton Housing Authority and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance, Audits of States, Local Governments, and Non- Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

III. Federal Award Findings and Questioned Costs Reference Number 2023-001 Finding Questioned Costs None Federal Program Information: Housing Choice Vouchers, FALN 14.871 Program year 2023, U.S. Department of Housing and Urban Development Criteria: In accordance with 24 CFR Sections 982.404 and 982.405, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must abate HAPS beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Statement of Condition: In our sample of 5 failed unit inspections, we noted one instance in which the tenant moved out after the unit failed inspection and subsequently a new tenant moved in and the PHA did not properly abate the HAP resulting in the landlord being paid for both tenants. Statement of Cause/Possible Asserted Effect: The instance above was a result of the controls to abate the HAP were not operating effectively. Questioned Costs: The landlaord was paid two additional HAP payments. There were no questioned costs associated with this instance. Recommendation: The Authority should strenghten controls over its review process regarding HQS failed units, including abatement and payment procedures. Views of Responsible Officials: Management agrees with this finding. 34
III. Federal Award Findings and Questioned Costs Reference Number 2023-001 Finding Questioned Costs None Federal Program Information: Housing Choice Vouchers, FALN 14.871 Program year 2023, U.S. Department of Housing and Urban Development Criteria: In accordance with 24 CFR Sections 982.404 and 982.405, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must abate HAPS beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Statement of Condition: In our sample of 5 failed unit inspections, we noted one instance in which the tenant moved out after the unit failed inspection and subsequently a new tenant moved in and the PHA did not properly abate the HAP resulting in the landlord being paid for both tenants. Statement of Cause/Possible Asserted Effect: The instance above was a result of the controls to abate the HAP were not operating effectively. Questioned Costs: The landlaord was paid two additional HAP payments. There were no questioned costs associated with this instance. Recommendation: The Authority should strenghten controls over its review process regarding HQS failed units, including abatement and payment procedures. Views of Responsible Officials: Management agrees with this finding. 34