FAC Explorer

Audit 310197

FY End
2023-09-30
Total Expended
$21.23M
Findings
4
Programs
11
Organization: Pasco County Housing Authority (FL)
Year: 2023 Accepted: 2024-06-26
Auditor: Aprio LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
403058 2023-001 Material Weakness - N
403059 2023-002 Material Weakness - N
979500 2023-001 Material Weakness - N
979501 2023-002 Material Weakness - N

Programs

ALN Program Spent Major Findings
10.415 Rural Rental Housing Loans $3.89M - 0
14.850 Public and Indian Housing $842,615 - 0
14.872 Public Housing Capital Fund $825,203 Yes 0
10.427 Rural Rental Assistance Payments $647,572 Yes 2
14.879 Mainstream Vouchers $567,626 Yes 0
14.182 Section 8 New Construction and Substantial Rehabilitation $558,147 - 0
14.241 Housing Opportunities for Persons with Aids $262,780 - 0
14.238 Shelter Plus Care $241,969 - 0
14.871 Section 8 Housing Choice Vouchers $125,916 Yes 0
14.239 Home Investment Partnerships Program $114,154 - 0
14.896 Family Self-Sufficiency Program $92,019 - 0

Contacts

Name Title Type
F86FU85TKV93 Michael Blakely Auditee
2156365592 Tom Carr Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – 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 allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% De Minimus Indirect Cost Rate allowed under the Uniform Guidance. The above Schedule of Expenditures of Federal Awards includes the federal award activity of the Authority under programs of the federal government for the year ended September 30, 2023. The information on 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. Because the Schedule presents only a selected portion of operations of the Authority, it is not intended to and does not present the financial net position, changes in net position, or cash flows of the Authority.
Title: NOTE 4 - LOAN BALANCE 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 allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% De Minimus Indirect Cost Rate allowed under the Uniform Guidance. The Authority’s outstanding Rural Rental Housing Loan Program loan balance as of September 30, 2023 was $3,861,576.
Title: NOTE 5 - AWARDS PASSED THROUGH TO 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 allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% De Minimus Indirect Cost Rate allowed under the Uniform Guidance. No federal award funds were passed-through to subrecipient grantees during the fiscal year ended September 30, 2023.
Title: NOTE 6 - NON-MONETARY FEDERAL AWARD 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 allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% De Minimus Indirect Cost Rate allowed under the Uniform Guidance. The Authority did not receive or expend non-monetary federal awards assistance during the fiscal year ended September 30, 2023.

Finding Details

Finding 2023-001
Finding 2023-001 – Annual Physical Inspections Not Consistently Performed (Material Weakness, Material Non-Compliance) Rural Rental Assistance Payments Program – Assistance Listing No. 10.427; Grant Period: Fiscal Year-End September 30, 2023 Criteria The Multi-Family Housing Programs and Asset Management Handbook (HB-2-3560) and the Code of Federal Regulations (CFR) Title 7, Subtitle B, Chapter XXXV, Part 3560 applicable to the Department of Agriculture, Rural Rental Housing provides guidance and criteria under which the Rural Rental Housing Payments Program is to be administered and operated. Specifically, Chapter 5 of the Handbook and CFR 3560.103(b) specify the performance of annual unit inspections. Condition and Perspective During audit fieldwork, auditors requested annual inspection reports for ten sampled units. Authority management was unable to provide applicable annual inspections for three of the ten units requested. The units not inspected appeared to be isolated to one of the three Rural Rental Assistance properties. Questioned Costs - None Cause Failure to perform inspections at one of three applicable sites. Failure to execute controls over property inspection requirements of the Program. Effect Non-compliance with federal requirements of the Program. Recommendation We recommend that the Authority perform annual inspections on each of its Program properties. Management’s Response The Authority will perform annual inspections on each of its Program properties. The Authority’s Executive Director, Jeff Sklet has assumed the responsibility of executing this corrective action as of July 31, 2024.
Finding 2023-002
Finding 2023-002 – Annual Property Budgets Not Submitted / Not Submitted Timely (Material Weakness, Material Non-Compliance) Rural Rental Assistance Payments Program – Assistance Listing No. 10.427; Grant Period: Fiscal Year-End September 30, 2023 Criteria The Multi-Family Housing Programs and Asset Management Handbook (HB-2-3560) and the Code of Federal Regulations (CFR) Title 7, Subtitle B, Chapter XXXV, Part 3560 applicable to the Department of Agriculture, Rural Rental Housing provides guidance and criteria under which the Rural Rental Housing Payments Program is to be administered and operated. Specifically, CFR 3560.303(a) specifies that an annual housing project budget must be submitted to the Rural Housing Service of the U.S. Department of Agriculture prior to the start of the applicable housing project’s fiscal year. Condition and Perspective The Authority did not submit fiscal year 2024 budgets appliable to its three Rural Rental Assistance properties. Questioned Costs - None Cause Failure to complete and submit property budgets. Failure to execute controls over budgeting requirements of the Program. Effect Non-compliance with federal requirements of the Program. Recommendation We recommend that the Authority complete and submit budgets applicable to each of its Program properties prior to the beginnings of subsequent fiscal years. Management’s Response The Authority will complete and submit budgets applicable to each of its Program properties prior to the beginnings of subsequent fiscal years. The Authority’s Executive Director, Jeff Sklet has assumed the responsibility of executing this corrective action as of July 1, 2024.
Finding 2023-001
Finding 2023-001 – Annual Physical Inspections Not Consistently Performed (Material Weakness, Material Non-Compliance) Rural Rental Assistance Payments Program – Assistance Listing No. 10.427; Grant Period: Fiscal Year-End September 30, 2023 Criteria The Multi-Family Housing Programs and Asset Management Handbook (HB-2-3560) and the Code of Federal Regulations (CFR) Title 7, Subtitle B, Chapter XXXV, Part 3560 applicable to the Department of Agriculture, Rural Rental Housing provides guidance and criteria under which the Rural Rental Housing Payments Program is to be administered and operated. Specifically, Chapter 5 of the Handbook and CFR 3560.103(b) specify the performance of annual unit inspections. Condition and Perspective During audit fieldwork, auditors requested annual inspection reports for ten sampled units. Authority management was unable to provide applicable annual inspections for three of the ten units requested. The units not inspected appeared to be isolated to one of the three Rural Rental Assistance properties. Questioned Costs - None Cause Failure to perform inspections at one of three applicable sites. Failure to execute controls over property inspection requirements of the Program. Effect Non-compliance with federal requirements of the Program. Recommendation We recommend that the Authority perform annual inspections on each of its Program properties. Management’s Response The Authority will perform annual inspections on each of its Program properties. The Authority’s Executive Director, Jeff Sklet has assumed the responsibility of executing this corrective action as of July 31, 2024.
Finding 2023-002
Finding 2023-002 – Annual Property Budgets Not Submitted / Not Submitted Timely (Material Weakness, Material Non-Compliance) Rural Rental Assistance Payments Program – Assistance Listing No. 10.427; Grant Period: Fiscal Year-End September 30, 2023 Criteria The Multi-Family Housing Programs and Asset Management Handbook (HB-2-3560) and the Code of Federal Regulations (CFR) Title 7, Subtitle B, Chapter XXXV, Part 3560 applicable to the Department of Agriculture, Rural Rental Housing provides guidance and criteria under which the Rural Rental Housing Payments Program is to be administered and operated. Specifically, CFR 3560.303(a) specifies that an annual housing project budget must be submitted to the Rural Housing Service of the U.S. Department of Agriculture prior to the start of the applicable housing project’s fiscal year. Condition and Perspective The Authority did not submit fiscal year 2024 budgets appliable to its three Rural Rental Assistance properties. Questioned Costs - None Cause Failure to complete and submit property budgets. Failure to execute controls over budgeting requirements of the Program. Effect Non-compliance with federal requirements of the Program. Recommendation We recommend that the Authority complete and submit budgets applicable to each of its Program properties prior to the beginnings of subsequent fiscal years. Management’s Response The Authority will complete and submit budgets applicable to each of its Program properties prior to the beginnings of subsequent fiscal years. The Authority’s Executive Director, Jeff Sklet has assumed the responsibility of executing this corrective action as of July 1, 2024.