FAC Explorer

Audit 310302

FY End
2023-09-30
Total Expended
$3.27M
Findings
16
Programs
4
Organization: The Housing Authority of Lafourche Parish (LA)
Year: 2023 Accepted: 2024-06-27
Auditor: Aprio LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
403157 2023-004 Significant Deficiency Yes E
403158 2023-005 Material Weakness - N
403159 2023-002 Material Weakness - I
403160 2023-003 Material Weakness - N
403161 2023-005 Material Weakness - N
403162 2023-005 - - L
403163 2023-006 - - N
403164 2023-005 - - L
979599 2023-004 Significant Deficiency Yes E
979600 2023-005 Material Weakness - N
979601 2023-002 Material Weakness - I
979602 2023-003 Material Weakness - N
979603 2023-005 Material Weakness - N
979604 2023-005 - - L
979605 2023-006 - - N
979606 2023-005 - - L

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $1.49M - 2
14.850 Public and Indian Housing $917,932 Yes 2
14.872 Public Housing Capital Fund $797,714 Yes 3
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $59,720 - 1

Contacts

Name Title Type
M7CNH6PHBKA1 Erial Branch Auditee
9855375289 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 3 – 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 year ended September 30, 2023.
Title: NOTE 4 – NON-MONETARY FEDERAL AWARDS 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 year ended September 30, 2023.

Finding Details

Finding 2023-004
Tenant File Documentation Maintenance (Significant Deficiency, Noncompliance) Public Housing Program – Assistance Listing No. 14.850a; Grant period – Fiscal Year Ended September 30, 2023 Criteria The Public Housing Occupancy Guidebook and other HUD PIH Notices and Handbooks provide requirements and guidance for which the Public Housing Program is to be administered and operated under with respect to tenant eligibility and reexaminations. Condition and Perspective During audit fieldwork, forty Public Housing Program tenant files were requested for review for compliance with Program eligibility and reexamination requirements. The following omissions were noted from the review: 1) Three files were missing at least one birth certificate or valid identification 2) Two files were missing a third-party verification of income Cause Failure to execute controls over tenant file documentation requirements. Effect Non-compliance with tenant file documentation requirements. Questioned Costs – None noted Recommendation We recommend that the Authority implement and execute strengthened controls over tenant file documentation maintenance processes and procedures. Management’s Response The Authority will implement and execute strengthened controls over tenant file documentation maintenance processes and procedures. Erial Branch, Executive Director, has assumed the responsibility of executing strengthened controls over tenant file documentation maintenance as of September 1, 2024.
Finding 2023-005
Federal Reporting Deadline Not Met/ Unaudited Financial Data Schedule Not Submitted Timely (Material Weakness applicable to Major Programs, Material Noncompliance applicable to Major Programs, Other Matter applicable to Non-Major Programs) Public Housing Program – Assistance Listing No. 14.850a, Section 8 Housing Choice Voucher Program – Assistance Listing No. 14.871, Capital Fund Program – Assistance Listing No. 14.872, Disaster Grants – Public Assistance (Presidentially Declared) – Assistance Listing No. 97.036; Grant period – Fiscal Year Ended September 30, 2023 Criteria HUD’s Real Estate Assessment Center (REAC) requires receipt of the Unaudited Financial Data Schedule within two months of a public housing agency’s fiscal year-end. Condition and Perspective The Authority did not submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. The Authority submitted its Unaudited Financial Data in June of 2024. Cause Delays with its fiscal year-end federal reporting process. Effect Noncompliance with REAC (federal) reporting requirements. Questioned Costs – N/A Recommendation We recommend that the Authority complete and submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. Management’s Response The Authority will complete and submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. Erial Branch, Executive Director, has assumed the responsibility of assuring completion and submission of the Authority’s Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end, and expects this instance of noncompliance to be resolved by November 30, 2024.
Finding 2023-002
Non-compliance with Internal Procurement Policy (Material Weakness, Material Non-Compliance) Capital Fund Program – Assistance Listing No. 14.872; Grant Period - Fiscal Year-Ended September 30, 2023 Criteria Public Housing Authorities (PHA’s) should procure federally-funded contracts in accordance with a formal, documented internal Procurement Policy based on federal procurement guidelines, including HUD Handbook 7460.8, Rev. 2, Procurement Handbook for Public Housing Agencies. PHA’s are prohibited from awarding contracts to contractors who have been suspended or debarred from performing contracts funded with federal subsidies. Additionally, the Authority’s Procurement Policy dictates full compliance with the Handbook. PHA’s are permitted to comply with the applicable regulations by A) searching the Excluded Parties List System (EPLS) for the prospective contractor, or B) attaining a certified statement from the contractor in which the contractor certifies against suspension or debarment. Condition and Perspective Two Capital Fund Program funded contract awards were sampled. One applicable contact, awarded in the amount of $481,610, did not contain the contractor’s certification against suspension and debarment or evidence that the EPLS was searched for the contractor. Questioned Costs – None Cause Lack of knowledge of federal procurement requirements among applicable personnel administering contract award. Effect Non-compliance with the Authority’s Procurement Policy and federal regulations. Recommendation We recommend that the Authority attain certification against suspension and debarment or search the EPLS for prospective contractors prior to awarding contracts. Management’s Response The Authority will attain certification against suspension and debarment or search the EPLS for prospective contractors prior to awarding contracts. The Authority’s Executive Director, Erial Branch, has assumed the responsibility of executing this corrective action as of July 1, 2024.
Finding 2023-003
Non-compliance with the Davis-Bacon Act (Material Weakness, Material Non-Compliance) Capital Fund Program – Assistance Listing No. 14.872; Grant Period - Fiscal Year-Ended September 30, 2023 Criteria The Davis-Bacon Act applies to contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works. Title 29 of the Code of Federal Regulations, Subtitle A, Part 5, Subpart A describes the Davis-Bacon Act and includes a requirement that applicable agencies shall include in their contracts a provision that the contractor or subcontractor comply with those requirements of the Department of Labor regulations (the Davis-Bacon Act). 29 CFR, Subtitle A, Part 5, Subpart A 5.5-A.3 Payrolls and Basic Records includes a requirement for the contractor or subcontractor to submit to the non-federal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition and Perspective During audit fieldwork, auditors sampled two contactor files for compliance with the Davis Bacon Act. The Authority was unable to provide certified payrolls for one of the two contractors which were required to submit certified payrolls for each week work was performed. $481,610 was expended under the contract during the fiscal year. Additionally, the Prevailing Wage Rate Clause was not included in the applicable contract. Questioned Costs - None Cause Lack of knowledge of the Davis-Bacon Act requirements among applicable personnel administering contract award and contract oversight. Effect Non-compliance with the Davis-Bacon Act. Recommendation We recommend that the Authority attain weekly certified payrolls from contractors as applicable for all federally funded contracts subject to the Davis-Bacon Act. Management’s Response The Authority will attain weekly certified payrolls from contractors as applicable for all federally funded contracts subject to the Davis-Bacon Act. The Authority’s Executive Director, Erial Branch, has assumed the responsibility of executing this corrective action as of August 1, 2024.
Finding 2023-005
Federal Reporting Deadline Not Met/ Unaudited Financial Data Schedule Not Submitted Timely (Material Weakness applicable to Major Programs, Material Noncompliance applicable to Major Programs, Other Matter applicable to Non-Major Programs) Public Housing Program – Assistance Listing No. 14.850a, Section 8 Housing Choice Voucher Program – Assistance Listing No. 14.871, Capital Fund Program – Assistance Listing No. 14.872, Disaster Grants – Public Assistance (Presidentially Declared) – Assistance Listing No. 97.036; Grant period – Fiscal Year Ended September 30, 2023 Criteria HUD’s Real Estate Assessment Center (REAC) requires receipt of the Unaudited Financial Data Schedule within two months of a public housing agency’s fiscal year-end. Condition and Perspective The Authority did not submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. The Authority submitted its Unaudited Financial Data in June of 2024. Cause Delays with its fiscal year-end federal reporting process. Effect Noncompliance with REAC (federal) reporting requirements. Questioned Costs – N/A Recommendation We recommend that the Authority complete and submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. Management’s Response The Authority will complete and submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. Erial Branch, Executive Director, has assumed the responsibility of assuring completion and submission of the Authority’s Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end, and expects this instance of noncompliance to be resolved by November 30, 2024.
Finding 2023-005
Federal Reporting Deadline Not Met/ Unaudited Financial Data Schedule Not Submitted Timely (Material Weakness applicable to Major Programs, Material Noncompliance applicable to Major Programs, Other Matter applicable to Non-Major Programs) Public Housing Program – Assistance Listing No. 14.850a, Section 8 Housing Choice Voucher Program – Assistance Listing No. 14.871, Capital Fund Program – Assistance Listing No. 14.872, Disaster Grants – Public Assistance (Presidentially Declared) – Assistance Listing No. 97.036; Grant period – Fiscal Year Ended September 30, 2023 Criteria HUD’s Real Estate Assessment Center (REAC) requires receipt of the Unaudited Financial Data Schedule within two months of a public housing agency’s fiscal year-end. Condition and Perspective The Authority did not submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. The Authority submitted its Unaudited Financial Data in June of 2024. Cause Delays with its fiscal year-end federal reporting process. Effect Noncompliance with REAC (federal) reporting requirements. Questioned Costs – N/A Recommendation We recommend that the Authority complete and submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. Management’s Response The Authority will complete and submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. Erial Branch, Executive Director, has assumed the responsibility of assuring completion and submission of the Authority’s Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end, and expects this instance of noncompliance to be resolved by November 30, 2024.
Finding 2023-006
Noncompliance With Waiting List and Move-in Policies and Procedures (Other Matter) Section 8 Housing Choice Voucher Program – Assistance Listing No. 14.871; Grant period – Fiscal Year Ended September 30, 2023 Criteria The Authority’s Section 8 Housing Choice Voucher Program participant admittance policies and procedures dictate selection of potential program participants from its waiting list. Condition and Perspective Three participants were issued vouchers without being selected from the waiting list. The waiting list was bypassed for these participants. There were no preferences or other reasons for bypassing the waiting list. Applicable fiscal year 2023 housing assistance payments expenditures totaled $28,135. Fiscal year 2024 housing assistance payments expenditures total $20,239 through the date of this Report. Cause Lack of sufficient monitoring over program admittance procedures. Effect Noncompliance with waiting list and move-in policies and procedures. Questioned Costs – Applicable fiscal year 2023 housing assistance payments expenditures totaled $28,135. Fiscal year 2024 housing assistance payments expenditures total $20,239 through the date of this Report. Recommendation We recommend that the Authority implement and execute increased monitoring and approval procedures over the program admittance process. Management’s Response The Authority will implement and execute increased monitoring and approval procedures over the program admittance process. Erial Branch, Executive Director, has assumed the responsibility of implementing and executing increased monitoring and approval procedures over the program admittance process, and anticipates the strengthened controls to be in place by August 1, 2024.
Finding 2023-005
Federal Reporting Deadline Not Met/ Unaudited Financial Data Schedule Not Submitted Timely (Material Weakness applicable to Major Programs, Material Noncompliance applicable to Major Programs, Other Matter applicable to Non-Major Programs) Public Housing Program – Assistance Listing No. 14.850a, Section 8 Housing Choice Voucher Program – Assistance Listing No. 14.871, Capital Fund Program – Assistance Listing No. 14.872, Disaster Grants – Public Assistance (Presidentially Declared) – Assistance Listing No. 97.036; Grant period – Fiscal Year Ended September 30, 2023 Criteria HUD’s Real Estate Assessment Center (REAC) requires receipt of the Unaudited Financial Data Schedule within two months of a public housing agency’s fiscal year-end. Condition and Perspective The Authority did not submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. The Authority submitted its Unaudited Financial Data in June of 2024. Cause Delays with its fiscal year-end federal reporting process. Effect Noncompliance with REAC (federal) reporting requirements. Questioned Costs – N/A Recommendation We recommend that the Authority complete and submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. Management’s Response The Authority will complete and submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. Erial Branch, Executive Director, has assumed the responsibility of assuring completion and submission of the Authority’s Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end, and expects this instance of noncompliance to be resolved by November 30, 2024.
Finding 2023-004
Tenant File Documentation Maintenance (Significant Deficiency, Noncompliance) Public Housing Program – Assistance Listing No. 14.850a; Grant period – Fiscal Year Ended September 30, 2023 Criteria The Public Housing Occupancy Guidebook and other HUD PIH Notices and Handbooks provide requirements and guidance for which the Public Housing Program is to be administered and operated under with respect to tenant eligibility and reexaminations. Condition and Perspective During audit fieldwork, forty Public Housing Program tenant files were requested for review for compliance with Program eligibility and reexamination requirements. The following omissions were noted from the review: 1) Three files were missing at least one birth certificate or valid identification 2) Two files were missing a third-party verification of income Cause Failure to execute controls over tenant file documentation requirements. Effect Non-compliance with tenant file documentation requirements. Questioned Costs – None noted Recommendation We recommend that the Authority implement and execute strengthened controls over tenant file documentation maintenance processes and procedures. Management’s Response The Authority will implement and execute strengthened controls over tenant file documentation maintenance processes and procedures. Erial Branch, Executive Director, has assumed the responsibility of executing strengthened controls over tenant file documentation maintenance as of September 1, 2024.
Finding 2023-005
Federal Reporting Deadline Not Met/ Unaudited Financial Data Schedule Not Submitted Timely (Material Weakness applicable to Major Programs, Material Noncompliance applicable to Major Programs, Other Matter applicable to Non-Major Programs) Public Housing Program – Assistance Listing No. 14.850a, Section 8 Housing Choice Voucher Program – Assistance Listing No. 14.871, Capital Fund Program – Assistance Listing No. 14.872, Disaster Grants – Public Assistance (Presidentially Declared) – Assistance Listing No. 97.036; Grant period – Fiscal Year Ended September 30, 2023 Criteria HUD’s Real Estate Assessment Center (REAC) requires receipt of the Unaudited Financial Data Schedule within two months of a public housing agency’s fiscal year-end. Condition and Perspective The Authority did not submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. The Authority submitted its Unaudited Financial Data in June of 2024. Cause Delays with its fiscal year-end federal reporting process. Effect Noncompliance with REAC (federal) reporting requirements. Questioned Costs – N/A Recommendation We recommend that the Authority complete and submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. Management’s Response The Authority will complete and submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. Erial Branch, Executive Director, has assumed the responsibility of assuring completion and submission of the Authority’s Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end, and expects this instance of noncompliance to be resolved by November 30, 2024.
Finding 2023-002
Non-compliance with Internal Procurement Policy (Material Weakness, Material Non-Compliance) Capital Fund Program – Assistance Listing No. 14.872; Grant Period - Fiscal Year-Ended September 30, 2023 Criteria Public Housing Authorities (PHA’s) should procure federally-funded contracts in accordance with a formal, documented internal Procurement Policy based on federal procurement guidelines, including HUD Handbook 7460.8, Rev. 2, Procurement Handbook for Public Housing Agencies. PHA’s are prohibited from awarding contracts to contractors who have been suspended or debarred from performing contracts funded with federal subsidies. Additionally, the Authority’s Procurement Policy dictates full compliance with the Handbook. PHA’s are permitted to comply with the applicable regulations by A) searching the Excluded Parties List System (EPLS) for the prospective contractor, or B) attaining a certified statement from the contractor in which the contractor certifies against suspension or debarment. Condition and Perspective Two Capital Fund Program funded contract awards were sampled. One applicable contact, awarded in the amount of $481,610, did not contain the contractor’s certification against suspension and debarment or evidence that the EPLS was searched for the contractor. Questioned Costs – None Cause Lack of knowledge of federal procurement requirements among applicable personnel administering contract award. Effect Non-compliance with the Authority’s Procurement Policy and federal regulations. Recommendation We recommend that the Authority attain certification against suspension and debarment or search the EPLS for prospective contractors prior to awarding contracts. Management’s Response The Authority will attain certification against suspension and debarment or search the EPLS for prospective contractors prior to awarding contracts. The Authority’s Executive Director, Erial Branch, has assumed the responsibility of executing this corrective action as of July 1, 2024.
Finding 2023-003
Non-compliance with the Davis-Bacon Act (Material Weakness, Material Non-Compliance) Capital Fund Program – Assistance Listing No. 14.872; Grant Period - Fiscal Year-Ended September 30, 2023 Criteria The Davis-Bacon Act applies to contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works. Title 29 of the Code of Federal Regulations, Subtitle A, Part 5, Subpart A describes the Davis-Bacon Act and includes a requirement that applicable agencies shall include in their contracts a provision that the contractor or subcontractor comply with those requirements of the Department of Labor regulations (the Davis-Bacon Act). 29 CFR, Subtitle A, Part 5, Subpart A 5.5-A.3 Payrolls and Basic Records includes a requirement for the contractor or subcontractor to submit to the non-federal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition and Perspective During audit fieldwork, auditors sampled two contactor files for compliance with the Davis Bacon Act. The Authority was unable to provide certified payrolls for one of the two contractors which were required to submit certified payrolls for each week work was performed. $481,610 was expended under the contract during the fiscal year. Additionally, the Prevailing Wage Rate Clause was not included in the applicable contract. Questioned Costs - None Cause Lack of knowledge of the Davis-Bacon Act requirements among applicable personnel administering contract award and contract oversight. Effect Non-compliance with the Davis-Bacon Act. Recommendation We recommend that the Authority attain weekly certified payrolls from contractors as applicable for all federally funded contracts subject to the Davis-Bacon Act. Management’s Response The Authority will attain weekly certified payrolls from contractors as applicable for all federally funded contracts subject to the Davis-Bacon Act. The Authority’s Executive Director, Erial Branch, has assumed the responsibility of executing this corrective action as of August 1, 2024.
Finding 2023-005
Federal Reporting Deadline Not Met/ Unaudited Financial Data Schedule Not Submitted Timely (Material Weakness applicable to Major Programs, Material Noncompliance applicable to Major Programs, Other Matter applicable to Non-Major Programs) Public Housing Program – Assistance Listing No. 14.850a, Section 8 Housing Choice Voucher Program – Assistance Listing No. 14.871, Capital Fund Program – Assistance Listing No. 14.872, Disaster Grants – Public Assistance (Presidentially Declared) – Assistance Listing No. 97.036; Grant period – Fiscal Year Ended September 30, 2023 Criteria HUD’s Real Estate Assessment Center (REAC) requires receipt of the Unaudited Financial Data Schedule within two months of a public housing agency’s fiscal year-end. Condition and Perspective The Authority did not submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. The Authority submitted its Unaudited Financial Data in June of 2024. Cause Delays with its fiscal year-end federal reporting process. Effect Noncompliance with REAC (federal) reporting requirements. Questioned Costs – N/A Recommendation We recommend that the Authority complete and submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. Management’s Response The Authority will complete and submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. Erial Branch, Executive Director, has assumed the responsibility of assuring completion and submission of the Authority’s Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end, and expects this instance of noncompliance to be resolved by November 30, 2024.
Finding 2023-005
Federal Reporting Deadline Not Met/ Unaudited Financial Data Schedule Not Submitted Timely (Material Weakness applicable to Major Programs, Material Noncompliance applicable to Major Programs, Other Matter applicable to Non-Major Programs) Public Housing Program – Assistance Listing No. 14.850a, Section 8 Housing Choice Voucher Program – Assistance Listing No. 14.871, Capital Fund Program – Assistance Listing No. 14.872, Disaster Grants – Public Assistance (Presidentially Declared) – Assistance Listing No. 97.036; Grant period – Fiscal Year Ended September 30, 2023 Criteria HUD’s Real Estate Assessment Center (REAC) requires receipt of the Unaudited Financial Data Schedule within two months of a public housing agency’s fiscal year-end. Condition and Perspective The Authority did not submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. The Authority submitted its Unaudited Financial Data in June of 2024. Cause Delays with its fiscal year-end federal reporting process. Effect Noncompliance with REAC (federal) reporting requirements. Questioned Costs – N/A Recommendation We recommend that the Authority complete and submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. Management’s Response The Authority will complete and submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. Erial Branch, Executive Director, has assumed the responsibility of assuring completion and submission of the Authority’s Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end, and expects this instance of noncompliance to be resolved by November 30, 2024.
Finding 2023-006
Noncompliance With Waiting List and Move-in Policies and Procedures (Other Matter) Section 8 Housing Choice Voucher Program – Assistance Listing No. 14.871; Grant period – Fiscal Year Ended September 30, 2023 Criteria The Authority’s Section 8 Housing Choice Voucher Program participant admittance policies and procedures dictate selection of potential program participants from its waiting list. Condition and Perspective Three participants were issued vouchers without being selected from the waiting list. The waiting list was bypassed for these participants. There were no preferences or other reasons for bypassing the waiting list. Applicable fiscal year 2023 housing assistance payments expenditures totaled $28,135. Fiscal year 2024 housing assistance payments expenditures total $20,239 through the date of this Report. Cause Lack of sufficient monitoring over program admittance procedures. Effect Noncompliance with waiting list and move-in policies and procedures. Questioned Costs – Applicable fiscal year 2023 housing assistance payments expenditures totaled $28,135. Fiscal year 2024 housing assistance payments expenditures total $20,239 through the date of this Report. Recommendation We recommend that the Authority implement and execute increased monitoring and approval procedures over the program admittance process. Management’s Response The Authority will implement and execute increased monitoring and approval procedures over the program admittance process. Erial Branch, Executive Director, has assumed the responsibility of implementing and executing increased monitoring and approval procedures over the program admittance process, and anticipates the strengthened controls to be in place by August 1, 2024.
Finding 2023-005
Federal Reporting Deadline Not Met/ Unaudited Financial Data Schedule Not Submitted Timely (Material Weakness applicable to Major Programs, Material Noncompliance applicable to Major Programs, Other Matter applicable to Non-Major Programs) Public Housing Program – Assistance Listing No. 14.850a, Section 8 Housing Choice Voucher Program – Assistance Listing No. 14.871, Capital Fund Program – Assistance Listing No. 14.872, Disaster Grants – Public Assistance (Presidentially Declared) – Assistance Listing No. 97.036; Grant period – Fiscal Year Ended September 30, 2023 Criteria HUD’s Real Estate Assessment Center (REAC) requires receipt of the Unaudited Financial Data Schedule within two months of a public housing agency’s fiscal year-end. Condition and Perspective The Authority did not submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. The Authority submitted its Unaudited Financial Data in June of 2024. Cause Delays with its fiscal year-end federal reporting process. Effect Noncompliance with REAC (federal) reporting requirements. Questioned Costs – N/A Recommendation We recommend that the Authority complete and submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. Management’s Response The Authority will complete and submit its Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end. Erial Branch, Executive Director, has assumed the responsibility of assuring completion and submission of the Authority’s Unaudited Financial Data Schedule to REAC within two months of its fiscal year-end, and expects this instance of noncompliance to be resolved by November 30, 2024.