Audit 309672

FY End
2023-09-30
Total Expended
$26.40M
Findings
2
Programs
5
Year: 2023 Accepted: 2024-06-24

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
401754 2023-001 Significant Deficiency - E
978196 2023-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $13.73M Yes 1
14.850 Public and Indian Housing $8.43M - 0
14.872 Public Housing Capital Fund $4.09M - 0
14.896 Family Self-Sufficiency Program $76,355 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $65,916 - 0

Contacts

Name Title Type
JHHNMRSAS7N3 Jamie Mitchum Auditee
8433771659 Jake Dooley Auditor
No contacts on file

Notes to SEFA

Title: Note 1: Basis of Accounting Accounting Policies: The accompanying Schedule of Financial Assistance is prepared on the accrual basis of accounting. Theinformation on this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for FederalAwards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of theAuthority, it is not intended to and does not present the financial position, changes in net position, or cash flowsof the Authority. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10-percent de minimus indirect cost rate as allowed under Uniform Guidance. The accompanying Schedule of Financial Assistance is prepared on the accrual basis of accounting. The information on this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, 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.
Title: Note 2: Major Programs Accounting Policies: The accompanying Schedule of Financial Assistance is prepared on the accrual basis of accounting. Theinformation on this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for FederalAwards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of theAuthority, it is not intended to and does not present the financial position, changes in net position, or cash flowsof the Authority. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10-percent de minimus indirect cost rate as allowed under Uniform Guidance. The (*) to the right of a CFDA number identifies the grant as a major federal program as defined by the Uniform Guidance.
Title: Note 3: Award Balance Accounting Policies: The accompanying Schedule of Financial Assistance is prepared on the accrual basis of accounting. Theinformation on this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for FederalAwards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of theAuthority, it is not intended to and does not present the financial position, changes in net position, or cash flowsof the Authority. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10-percent de minimus indirect cost rate as allowed under Uniform Guidance. On the Section 8 Vouchers/Certificate programs, the Authority receives annual funds based on an annual estimate of need. Unexpended grant funds are available to meet subsequent year HAP shortfalls.
Title: Note 4: Program Costs Accounting Policies: The accompanying Schedule of Financial Assistance is prepared on the accrual basis of accounting. Theinformation on this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for FederalAwards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of theAuthority, it is not intended to and does not present the financial position, changes in net position, or cash flowsof the Authority. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10-percent de minimus indirect cost rate as allowed under Uniform Guidance. The amounts shown as current year expenditures represent only the federal portion of the actual program costs. Actual program costs, including the housing Authority's portion, may be more than shown.
Title: Note 5: Indirect Cost Allocation Accounting Policies: The accompanying Schedule of Financial Assistance is prepared on the accrual basis of accounting. Theinformation on this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for FederalAwards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of theAuthority, it is not intended to and does not present the financial position, changes in net position, or cash flowsof the Authority. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10-percent de minimus indirect cost rate as allowed under Uniform Guidance. The Authority has not elected to use the 10-percent de minimus indirect cost rate as allowed under Uniform Guidance.

Finding Details

CONDITION: The Authority failed to perform Enterprise Income Verification (EIV) system checks on new participant admissions to the Housing Choice Voucher (HCV) program. CRITERIA: The Authority is required to perform EIV system checks for all new admissions to the Program within 120 days per 24 CFR 5.233.QUESTIONED COSTS: Unknown.CONTEXT: Forty tenant files were chosen using a statically valid sample. Of the tenant files examined, three participant files for new admissions to the program did not have EIV system reports.EFFECT: The Housing Authority could be maintaining or accepting tenants who are not properly certified in accordance with HUD regulations and may not be paying the appropriate amount of rent. The Authority could be making HAP payments on a unit that should instead be at market rent.CAUSE: The overall cause was staff overturn and understaffing in the department and a lack of effective management oversight and quality control over this program.RECOMMENDATION: The Housing Authority should implement greater oversight over Housing Choice Voucher tenant compliance and train employees on procedures mandated by HUD regarding use of the EIV system with respect to new participant admissions.
CONDITION: The Authority failed to perform Enterprise Income Verification (EIV) system checks on new participant admissions to the Housing Choice Voucher (HCV) program. CRITERIA: The Authority is required to perform EIV system checks for all new admissions to the Program within 120 days per 24 CFR 5.233.QUESTIONED COSTS: Unknown.CONTEXT: Forty tenant files were chosen using a statically valid sample. Of the tenant files examined, three participant files for new admissions to the program did not have EIV system reports.EFFECT: The Housing Authority could be maintaining or accepting tenants who are not properly certified in accordance with HUD regulations and may not be paying the appropriate amount of rent. The Authority could be making HAP payments on a unit that should instead be at market rent.CAUSE: The overall cause was staff overturn and understaffing in the department and a lack of effective management oversight and quality control over this program.RECOMMENDATION: The Housing Authority should implement greater oversight over Housing Choice Voucher tenant compliance and train employees on procedures mandated by HUD regarding use of the EIV system with respect to new participant admissions.