Audit 307491

FY End
2023-12-31
Total Expended
$91.58M
Findings
4
Programs
2
Year: 2023 Accepted: 2024-05-29
Auditor: Cohnreznick LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
398751 2023-001 Significant Deficiency Yes L
398752 2023-002 Significant Deficiency Yes N
975193 2023-001 Significant Deficiency Yes L
975194 2023-002 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
21.023 Emergency Rental Assistance Program $726,490 - 0
14.881 Moving to Work Demonstration Program $122,510 Yes 0

Contacts

Name Title Type
LDF2JEF4NNU1 Alison James Auditee
6672072142 Daniel O'Shea Auditor
No contacts on file

Notes to SEFA

Title: Basis of presentation Accounting Policies: 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: BRHP has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Baltimore Regional Housing Partnership, Inc. ("BRHP") under programs of the federal government for the year ended December 31, 2023. The information in this 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 BRHP, it is not intended to and does not present the financial position, changes in net assets or cash flows of BRHP.

Finding Details

Finding No. 2023 - 001: Federal Agency: Department of Housing and Urban Development ("HUD") Federal Program Title: Moving to Work Demonstration Program (HCVP Only) Federal Assistance Listing Number: 14.881 Award Period: January 1, 2023 through December 31, 2023 Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Condition/Context A sample of 60 tenant files tested found that 10 files did not have HUD-50058 data uploaded to the PIH Information Center ("PIC") in a timely manner. Our sample was a statistically valid sample. Questioned Costs N/A Criteria Per the agreement between BRHP and the Housing Authority of Baltimore City, BRHP shall create an Administrative Plan for the program. Per BRHP's Program Administrative Plan, tenant information must be uploaded to the PIC system for each HUD-50058 report completed no later than 60 calendar days from the effective date of any action recorded on the form HUD-50058. Cause Of the 10 files selected, 8 were families submitted to PIC in 2022 prior to a revision in BRHP's process to submit weekly. Two of the families were submitted in 2023 with action 7's for an interim move, a 50058 action. One of these two had an action 7 effective on April 21, 2023, that was approved on June 23, 2023, and submitted to PIC on June 27, 2023. The other had an action 7 effective May 1, 2023, that was approved on August 15, 2023, and submitted to PIC on August 18, 2023. Both files were submitted within the week of the files being approved during BRHP's weekly PIC submission but were late due to the late 50058 approval. Effect The delay in uploading information to the PIC system may result in inaccurate reporting to HUD which is used for funding purposes. Identification of a Repeat Finding This is a repeat finding from the immediate previous audit, Finding No. 2022-002. Recommendations We recommend that BRHP follow its internal policy of reporting to HUD on a weekly basis. Views of the Responsible Officials At this time, all files selected for the audit have corresponding records successfully submitted to HUD through the PIC submission portal. BRHP will continue weekly PIC submissions and clearing of fatal errors. The late PIC submissions identified were a result of late 50058 approvals which resulted in late PIC submission. The 50058's were uploaded to PIC within 5 days of the approval. BRHP monitors 50058's related to moves in a weekly leasing report. In addition, BRHP meets biweekly to discuss the report. BRHP will monitor the weekly leasing report to review the lease effective dates to HAP executed dates to ensure the actions are approved timely.
Finding No. 2023 - 002: Federal Agency: Department of Housing and Urban Development Federal Program Title: Moving to Work Demonstration Program (HCVP Only) Federal Assistance Listing Number: 14.881 Award Period: January 1, 2023 through December 31, 2023 Compliance Requirement: Special Tests and Provisions Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Condition/Context A sample of 60 tenant files tested for special tests found the following exceptions:  Three (3) of 60 files tested did not have a housing quality standards inspection performed within 25 months of the previous inspection. Our sample was a statistically valid sample. Questioned Costs N/A Criteria The Program Administrative Plan states that BRHP will attempt to inspect all units under contract in accordance with its Housing Quality Standards ("HQS") and the units must pass inspection at least once every 25 months. Cause Two of the three BRHP families had inspections completed within the required timeframe of 25 months by BRHP's third-party contractor, however, both failed HQS. The reinspections of both units were not scheduled in a timely manner by the contractor. Effect BRHP is not in compliance with its administrative plan and the Uniform Guidance compliance requirements. Identification of a Repeat Finding This is a repeat finding from the immediate previous audit, Finding No. 2022-003. Recommendations We recommend that BRHP review their process for tracking and scheduling inspections to ensure compliance. Views of the Responsible Officials The two files noted for missed inspections have since been scheduled for reinspection, and one passed HQS inspection on March 14, 2024. The other was scheduled for inspection on March 12, 2024, and resulted in a Broken Scheduled Appointment ("BSA"). A second inspection was scheduled for March 28, 2024. BRHP has added two elements to the reporting process for inspections. The weekly leasing report now identifies failed inspections within the period. The second element is the Inspection Audit report. BRHP has increased the reporting metric from monthly to bi-weekly and included a pivot table to ensure the report is user friendly to staff that are responsible for reviewing. Both changes allow for greater visibility and frequency to ensure missed inspections are identified.
Finding No. 2023 - 001: Federal Agency: Department of Housing and Urban Development ("HUD") Federal Program Title: Moving to Work Demonstration Program (HCVP Only) Federal Assistance Listing Number: 14.881 Award Period: January 1, 2023 through December 31, 2023 Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Condition/Context A sample of 60 tenant files tested found that 10 files did not have HUD-50058 data uploaded to the PIH Information Center ("PIC") in a timely manner. Our sample was a statistically valid sample. Questioned Costs N/A Criteria Per the agreement between BRHP and the Housing Authority of Baltimore City, BRHP shall create an Administrative Plan for the program. Per BRHP's Program Administrative Plan, tenant information must be uploaded to the PIC system for each HUD-50058 report completed no later than 60 calendar days from the effective date of any action recorded on the form HUD-50058. Cause Of the 10 files selected, 8 were families submitted to PIC in 2022 prior to a revision in BRHP's process to submit weekly. Two of the families were submitted in 2023 with action 7's for an interim move, a 50058 action. One of these two had an action 7 effective on April 21, 2023, that was approved on June 23, 2023, and submitted to PIC on June 27, 2023. The other had an action 7 effective May 1, 2023, that was approved on August 15, 2023, and submitted to PIC on August 18, 2023. Both files were submitted within the week of the files being approved during BRHP's weekly PIC submission but were late due to the late 50058 approval. Effect The delay in uploading information to the PIC system may result in inaccurate reporting to HUD which is used for funding purposes. Identification of a Repeat Finding This is a repeat finding from the immediate previous audit, Finding No. 2022-002. Recommendations We recommend that BRHP follow its internal policy of reporting to HUD on a weekly basis. Views of the Responsible Officials At this time, all files selected for the audit have corresponding records successfully submitted to HUD through the PIC submission portal. BRHP will continue weekly PIC submissions and clearing of fatal errors. The late PIC submissions identified were a result of late 50058 approvals which resulted in late PIC submission. The 50058's were uploaded to PIC within 5 days of the approval. BRHP monitors 50058's related to moves in a weekly leasing report. In addition, BRHP meets biweekly to discuss the report. BRHP will monitor the weekly leasing report to review the lease effective dates to HAP executed dates to ensure the actions are approved timely.
Finding No. 2023 - 002: Federal Agency: Department of Housing and Urban Development Federal Program Title: Moving to Work Demonstration Program (HCVP Only) Federal Assistance Listing Number: 14.881 Award Period: January 1, 2023 through December 31, 2023 Compliance Requirement: Special Tests and Provisions Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Condition/Context A sample of 60 tenant files tested for special tests found the following exceptions:  Three (3) of 60 files tested did not have a housing quality standards inspection performed within 25 months of the previous inspection. Our sample was a statistically valid sample. Questioned Costs N/A Criteria The Program Administrative Plan states that BRHP will attempt to inspect all units under contract in accordance with its Housing Quality Standards ("HQS") and the units must pass inspection at least once every 25 months. Cause Two of the three BRHP families had inspections completed within the required timeframe of 25 months by BRHP's third-party contractor, however, both failed HQS. The reinspections of both units were not scheduled in a timely manner by the contractor. Effect BRHP is not in compliance with its administrative plan and the Uniform Guidance compliance requirements. Identification of a Repeat Finding This is a repeat finding from the immediate previous audit, Finding No. 2022-003. Recommendations We recommend that BRHP review their process for tracking and scheduling inspections to ensure compliance. Views of the Responsible Officials The two files noted for missed inspections have since been scheduled for reinspection, and one passed HQS inspection on March 14, 2024. The other was scheduled for inspection on March 12, 2024, and resulted in a Broken Scheduled Appointment ("BSA"). A second inspection was scheduled for March 28, 2024. BRHP has added two elements to the reporting process for inspections. The weekly leasing report now identifies failed inspections within the period. The second element is the Inspection Audit report. BRHP has increased the reporting metric from monthly to bi-weekly and included a pivot table to ensure the report is user friendly to staff that are responsible for reviewing. Both changes allow for greater visibility and frequency to ensure missed inspections are identified.