FAC Explorer

Audit 309875

FY End
2023-09-30
Total Expended
$182.39M
Findings
2
Programs
7
Organization: Southern Nevada Regional Housing Authority (NV)
Year: 2023 Accepted: 2024-06-25
Auditor: Rector Reeder & Lofton PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
401957 2023-001 Significant Deficiency - E
978399 2023-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $13.38M Yes 0
14.871 Section 8 Housing Choice Vouchers $7.02M Yes 0
14.872 Public Housing Capital Fund $4.68M Yes 0
14.879 Mainstream Vouchers $2.60M Yes 0
14.896 Family Self-Sufficiency Program $989,960 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $99,240 - 0
14.892 Choice Neighborhoods Planning Grants $15,350 - 0

Contacts

Name Title Type
DAE1MQ2FVXV8 Fred Haron Auditee
7024773120 Dale R. Rector 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. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the 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 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 financial position, changes in net assets, or cash flows of the Authority.
Title: SUBRECIPIENTS 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. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10% de minimis cost rate. The Authority provided no federal awards to subrecipients during the fiscal year ending September 30, 2023.
Title: DISCLOSURE OF OTHER FORMS OF ASSISTANCE 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. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10% de minimis cost rate. The Authority received no federal awards of non-monetary assistance that are required to be disclosed for the year ended September 30, 2023. The Authority had no loans or loan guarantees to be disclosed as of September 30, 2023. There were no federally restricted endowment funds required to be disclosed for the fiscal year ended September 30, 2023. The Authority maintains the following limits of insurance as of September 30, 2023: Property $ 427,377,112 Equipment Breakdown $ 100,000,000 Flood $ 250,000 Liability $ 2,000,000 Public Officials $ 1,000,000 Worker Compensation Statutory Employee Practice $ 1,000,000 Auto Liability $ 700,000 Settled claims have not exceeded the above limits over the past three years.

Finding Details

Finding 2023-001
Finding 2023-001 – Housing Choice Voucher Tenant Files – Eligibility – Internal Control over Tenant Files - Noncompliance & Significant Deficiency Housing Choice Voucher Program – ALN 14.871 Condition & Cause: We reviewed two hundred fifty (250) tenant files for full compliance, as well as fifty (50) tenant files for existence, for a total of three hundred (300) tenant files reviewed. Of the two hundred fifty (250) tenant files fully reviewed, we noted twenty-eight (26) tenant files were not in compliance. Of these, twenty-one (21) files, or 8.4% of our sample, contained errors related to adjusted annual income. The income-related discrepancies mainly consist of failure to gather or provide third-party verification of income or deductions and miscalculations of income due to nonconsecutive pay data, improper pay frequencies, or other procedures that are incongruent with the Administrative Plan and Federal Regulations. We were able to extrapolate identified misstatements of HAP and found the potential misstatement to represent 0.07% of program HAP expense, which is immaterial to the financial statements. The remaining discrepancies reflect files for which a biennial inspection was not conducted. We noted two factors that we believe contributed to the tenant file discrepancies. First, the Housing Choice Voucher department has experienced frequent turnover in leadership over the past several audits. Second, the Agency has encountered challenges in their conversion from paper to electronically maintained tenant files. Criteria: The Code of Federal regulations, the Housing Authority Administrative Plan and specific HUD guidelines in documenting and maintaining Housing Choice Voucher tenant files. Effect: Failure to properly verify and calculate annual income can result in a misstatement of HAP expense leading to improper funding for the HCV program. Misstatements of HAP may also cause an undue financial burden to the participant, which goes against the mission of the Agency. Additionally, noncompliance can result in a decrease of vouchers or loss of program funding. Recommendation: We recommend that the Agency increase their monitoring and quality control review of the HCV program files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. Our experience with agencies that increase monitoring and review of the files is that there are dramatically decreased error rates. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.
Finding 2023-001
Finding 2023-001 – Housing Choice Voucher Tenant Files – Eligibility – Internal Control over Tenant Files - Noncompliance & Significant Deficiency Housing Choice Voucher Program – ALN 14.871 Condition & Cause: We reviewed two hundred fifty (250) tenant files for full compliance, as well as fifty (50) tenant files for existence, for a total of three hundred (300) tenant files reviewed. Of the two hundred fifty (250) tenant files fully reviewed, we noted twenty-eight (26) tenant files were not in compliance. Of these, twenty-one (21) files, or 8.4% of our sample, contained errors related to adjusted annual income. The income-related discrepancies mainly consist of failure to gather or provide third-party verification of income or deductions and miscalculations of income due to nonconsecutive pay data, improper pay frequencies, or other procedures that are incongruent with the Administrative Plan and Federal Regulations. We were able to extrapolate identified misstatements of HAP and found the potential misstatement to represent 0.07% of program HAP expense, which is immaterial to the financial statements. The remaining discrepancies reflect files for which a biennial inspection was not conducted. We noted two factors that we believe contributed to the tenant file discrepancies. First, the Housing Choice Voucher department has experienced frequent turnover in leadership over the past several audits. Second, the Agency has encountered challenges in their conversion from paper to electronically maintained tenant files. Criteria: The Code of Federal regulations, the Housing Authority Administrative Plan and specific HUD guidelines in documenting and maintaining Housing Choice Voucher tenant files. Effect: Failure to properly verify and calculate annual income can result in a misstatement of HAP expense leading to improper funding for the HCV program. Misstatements of HAP may also cause an undue financial burden to the participant, which goes against the mission of the Agency. Additionally, noncompliance can result in a decrease of vouchers or loss of program funding. Recommendation: We recommend that the Agency increase their monitoring and quality control review of the HCV program files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. Our experience with agencies that increase monitoring and review of the files is that there are dramatically decreased error rates. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.