FAC Explorer

Audit 310613

FY End
2023-09-30
Total Expended
$82.31M
Findings
22
Programs
17
Organization: Guam Housing and Urban Renewal Authority (GU)
Year: 2023 Accepted: 2024-06-27
Auditor: Ernst & Young LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
403588 2023-001 Material Weakness Yes L
403589 2023-001 Material Weakness Yes L
403590 2023-002 Material Weakness - G
403591 2023-003 Material Weakness Yes L
403592 2023-003 Material Weakness Yes L
403593 2023-003 Material Weakness Yes L
403594 2023-003 Material Weakness Yes L
403595 2023-004 Material Weakness Yes N
403596 2023-004 Material Weakness Yes N
403597 2023-004 Material Weakness Yes N
403598 2023-004 Material Weakness Yes N
980030 2023-001 Material Weakness Yes L
980031 2023-001 Material Weakness Yes L
980032 2023-002 Material Weakness - G
980033 2023-003 Material Weakness Yes L
980034 2023-003 Material Weakness Yes L
980035 2023-003 Material Weakness Yes L
980036 2023-003 Material Weakness Yes L
980037 2023-004 Material Weakness Yes N
980038 2023-004 Material Weakness Yes N
980039 2023-004 Material Weakness Yes N
980040 2023-004 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $48.26M Yes 2
14.248 Community Development Block Grants_section 108 Loan Guarantees $11.55M - 0
14.850 Public and Indian Housing $6.59M - 0
14.239 Home Investment Partnerships Program $4.37M - 0
14.225 Community Development Block Grants/special Purpose Grants/insular Areas $3.85M Yes 1
14.872 Public Housing Capital Fund $1.92M - 0
14.U03 Emergency Housing Voucher $1.74M Yes 2
14.267 Continuum of Care Program $912,497 Yes 1
14.157 Supportive Housing for the Elderly $620,754 - 0
14.231 Emergency Solutions Grant Program $364,730 - 0
14.879 Mainstream Vouchers $277,812 Yes 2
14.896 Family Self-Sufficiency Program $142,182 - 0
14.191 Multifamily Housing Service Coordinators $55,641 - 0
14.U02 Fss Escrow Forfeiture $456 - 0
14.U01 Central Office Cost Center Cares Act Funding $-963 - 0
14.U04 Hcv Cares Act Funding $-65,838 Yes 2
14.870 Resident Opportunity and Supportive Services - Service Coordinators $-74,447 - 0

Contacts

Name Title Type
H8HNL7Y96VG8 Elizabeth Napoli Auditee
6714751378 Rizalito Paglingayen Auditor
No contacts on file

Notes to SEFA

Title: 1. Scope of Audit Accounting Policies: 3. Summary of Significant Accounting Policies a. Basis of Accounting For purposes of this Schedule, certain accounting procedures were followed, which help illustrate the expenditures of the individual programs. 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. Disbursements made to subrecipients related to the grant agreements are reported as expenditures. b. Subgrants Certain program funds are passed through GHURA to subrecipient organizations. The Schedule of Expenditures of Federal Awards does not contain separate schedules disclosing how the subrecipients outside of GHURA’s control utilized the funds. 3. Summary of Significant Accounting Policies, continued c. Funds Received GHURA received all the funds indicated on this Schedule in a direct capacity in Fiscal Year 2023. GHURA also administers all the funds and is responsible for compliance with the laws and regulations. d. Indirect Costs GHURA does not have an indirect cost negotiation agreement and does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance in accordance with 2 CFR §200.414. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Guam Housing and Urban Renewal Authority (GHURA), a component unit of the Government of Guam, was formed primarily to provide safe, decent, sanitary, and affordable housing for low- to moderate-income families and elderly families in the Territory of Guam. All operations of GHURA are included in the scope of the Single Audit. The U.S. Department of Housing and Urban Development is the oversight agency for GHURA’s Single Audit
Title: 2. Basis of Presentation Accounting Policies: 3. Summary of Significant Accounting Policies a. Basis of Accounting For purposes of this Schedule, certain accounting procedures were followed, which help illustrate the expenditures of the individual programs. 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. Disbursements made to subrecipients related to the grant agreements are reported as expenditures. b. Subgrants Certain program funds are passed through GHURA to subrecipient organizations. The Schedule of Expenditures of Federal Awards does not contain separate schedules disclosing how the subrecipients outside of GHURA’s control utilized the funds. 3. Summary of Significant Accounting Policies, continued c. Funds Received GHURA received all the funds indicated on this Schedule in a direct capacity in Fiscal Year 2023. GHURA also administers all the funds and is responsible for compliance with the laws and regulations. d. Indirect Costs GHURA does not have an indirect cost negotiation agreement and does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance in accordance with 2 CFR §200.414. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of GHURA 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 GHURA, it is not intended to and does not present the financial position, changes in net position or cash flows of GHURA.
Title: 3. Summary of Significant Accounting Policies Accounting Policies: 3. Summary of Significant Accounting Policies a. Basis of Accounting For purposes of this Schedule, certain accounting procedures were followed, which help illustrate the expenditures of the individual programs. 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. Disbursements made to subrecipients related to the grant agreements are reported as expenditures. b. Subgrants Certain program funds are passed through GHURA to subrecipient organizations. The Schedule of Expenditures of Federal Awards does not contain separate schedules disclosing how the subrecipients outside of GHURA’s control utilized the funds. 3. Summary of Significant Accounting Policies, continued c. Funds Received GHURA received all the funds indicated on this Schedule in a direct capacity in Fiscal Year 2023. GHURA also administers all the funds and is responsible for compliance with the laws and regulations. d. Indirect Costs GHURA does not have an indirect cost negotiation agreement and does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance in accordance with 2 CFR §200.414. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. a. Basis of Accounting For purposes of this Schedule, certain accounting procedures were followed, which help illustrate the expenditures of the individual programs. 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. Disbursements made to subrecipients related to the grant agreements are reported as expenditures. b. Subgrants Certain program funds are passed through GHURA to subrecipient organizations. The Schedule of Expenditures of Federal Awards does not contain separate schedules disclosing how the subrecipients outside of GHURA’s control utilized the funds. 3. Summary of Significant Accounting Policies, continued c. Funds Received GHURA received all the funds indicated on this Schedule in a direct capacity in Fiscal Year 2023. GHURA also administers all the funds and is responsible for compliance with the laws and regulations. d. Indirect Costs GHURA does not have an indirect cost negotiation agreement and does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance in accordance with 2 CFR §200.414.
Title: 4. Loan Funds Accounting Policies: 3. Summary of Significant Accounting Policies a. Basis of Accounting For purposes of this Schedule, certain accounting procedures were followed, which help illustrate the expenditures of the individual programs. 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. Disbursements made to subrecipients related to the grant agreements are reported as expenditures. b. Subgrants Certain program funds are passed through GHURA to subrecipient organizations. The Schedule of Expenditures of Federal Awards does not contain separate schedules disclosing how the subrecipients outside of GHURA’s control utilized the funds. 3. Summary of Significant Accounting Policies, continued c. Funds Received GHURA received all the funds indicated on this Schedule in a direct capacity in Fiscal Year 2023. GHURA also administers all the funds and is responsible for compliance with the laws and regulations. d. Indirect Costs GHURA does not have an indirect cost negotiation agreement and does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance in accordance with 2 CFR §200.414. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. GHURA, on behalf of the Government of Guam, has been designated the responsibility of implementing and carrying out the objectives of the HOME Program. The program is designed to increase homeownership and affordable housing opportunities for low- and very low-income Americans. HOME loan applicants that have been determined to be eligible for financial assistance are required to comply with the terms and requirements. Balances and transactions relating to the HOME program are included in GHURA’s financial statements. Loans made during the year and the balances of loans from previous years for which the federal government imposes continuing compliance requirements are included in the federal expenditures presented in the Schedule. As of September 30, 2023, the HOME and CDBG Program expenditures include $307,064 and $3,631,997 in current year disbursements and the beginning balance of HOME and CDBG loans of $4,272,650 and $243,349, with continuing compliance requirements, respectively. The balance of HOME Investment Partnerships and CDBG grant loans outstanding and recorded by GHURA on September 30, 2023 is $4,058,424 and $220,096, respectively. In December 2020, GHURA entered into a $12M loan with the U.S. Department of Housing and Urban Development to provide a source of low-cost, long-term financing loan to The Learning Institute through the Section 108 Loan Guarantee Program to construct a public facility for use as a school. The facility will be leased to the eLearn Academy Charter School by The Learning Institute. As of September 30, 2023, the Section 108 expenditures include $646,806 in current year interest expense and reimbursable costs of $313 to GHURA from The Learning Institute. The balance of the Section 108 loan outstanding and recorded by GHURA as of September 30, 2023 is $11,380,000.

Finding Details

Finding 2023-001
Finding No.: 2023-001 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.225 CDBG - Entitlement Grants Cluster Federal Award No.: B22ST660001, COVID-19 B20SW660001, B20ST660001 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, reported amounts in the Integrated Disbursement and Information System (IDIS) should be accurate and complete. Also, recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: 1. Certain amounts reported in PR26 – CDBG Financial Summary Report, Program Year 2022, Grant No. B22ST660001, do not agree with underlying accounting records and result in obligations for planning and administration (PA) activities exceeding the 20-percent ceiling. See Schedule of Findings and Question Costs for chart/table. COVID-19 2. Certain amounts reported in PR26 – CDBG-CV Financial Summary Report, Grant No. B20SW660001 do not agree with underlying accounting records, as follows: See Schedule of Findings and Question Costs for chart/table. 3. Certain amounts reported in C04PR26 – CDBG Activity Summary by Selected Grant for Program Years do not agree with underlying accounting records, as follows: See Schedule of Findings and Question Costs for chart/table. 4. Subawards are not reported in FSRS, as follows: See Schedule of Findings and Question Costs for chart/table. Cause: GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost results because the variances do not represent Program overpayments. Identification as a Repeat Finding: 2022-001 Recommendation: Responsible personnel should strengthen monitoring controls over compliance with applicable reporting requirements. Prior to certifying IDIS reports, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, responsible personnel should monitor subawards for reporting in FSRS. Views of Responsible Officials: Condition 1, 2, and 3: The reporting and recording requirements in the Integrated Disbursement and Information System (IDIS), use and reconciliation of the CDBG Program is complex in nature. The Authority will review its accounting processes to accurately record and provide complete reports as required by the U.S. Department of Housing and Urban Development (HUD), by the recommendations from HUD’s technical assistance, and by the updated Uniform Guidance requirements. Responsible accounting and planning personnel will be trained on updated Uniform Guidance and the IDIS. Condition 4: The data for the reporting and recording requirements for subawards in the FSRS are currently entered in FY 2024. The Authority will review its accounting processes to continue to accurately record and provide complete reports as required by the U.S. Housing and Urban Development (HUD), by the recommendations from HUD’s technical assistance, and by the updated Uniform Guidance requirements. Responsible accounting and planning personnel will be trained on updated Uniform Guidance and the IDIS to enhance the reporting requirements.
Finding 2023-001
Finding No.: 2023-001 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.225 CDBG - Entitlement Grants Cluster Federal Award No.: B22ST660001, COVID-19 B20SW660001, B20ST660001 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, reported amounts in the Integrated Disbursement and Information System (IDIS) should be accurate and complete. Also, recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: 1. Certain amounts reported in PR26 – CDBG Financial Summary Report, Program Year 2022, Grant No. B22ST660001, do not agree with underlying accounting records and result in obligations for planning and administration (PA) activities exceeding the 20-percent ceiling. See Schedule of Findings and Question Costs for chart/table. COVID-19 2. Certain amounts reported in PR26 – CDBG-CV Financial Summary Report, Grant No. B20SW660001 do not agree with underlying accounting records, as follows: See Schedule of Findings and Question Costs for chart/table. 3. Certain amounts reported in C04PR26 – CDBG Activity Summary by Selected Grant for Program Years do not agree with underlying accounting records, as follows: See Schedule of Findings and Question Costs for chart/table. 4. Subawards are not reported in FSRS, as follows: See Schedule of Findings and Question Costs for chart/table. Cause: GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost results because the variances do not represent Program overpayments. Identification as a Repeat Finding: 2022-001 Recommendation: Responsible personnel should strengthen monitoring controls over compliance with applicable reporting requirements. Prior to certifying IDIS reports, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, responsible personnel should monitor subawards for reporting in FSRS. Views of Responsible Officials: Condition 1, 2, and 3: The reporting and recording requirements in the Integrated Disbursement and Information System (IDIS), use and reconciliation of the CDBG Program is complex in nature. The Authority will review its accounting processes to accurately record and provide complete reports as required by the U.S. Department of Housing and Urban Development (HUD), by the recommendations from HUD’s technical assistance, and by the updated Uniform Guidance requirements. Responsible accounting and planning personnel will be trained on updated Uniform Guidance and the IDIS. Condition 4: The data for the reporting and recording requirements for subawards in the FSRS are currently entered in FY 2024. The Authority will review its accounting processes to continue to accurately record and provide complete reports as required by the U.S. Housing and Urban Development (HUD), by the recommendations from HUD’s technical assistance, and by the updated Uniform Guidance requirements. Responsible accounting and planning personnel will be trained on updated Uniform Guidance and the IDIS to enhance the reporting requirements.
Finding 2023-002
Finding No.: 2023-002 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.267 Continuum of Care Program Area: Matching, Level of Effort, Earmarking Questioned Costs: $51,281 Criteria: In accordance with applicable matching requirements, the recipient or subrecipient must match all grant funds, except for leasing funds, with no less than 25 percent of cash or in-kind contributions from other sources that is verifiable from the non-federal entity’s records and are not included as contributions for any other federal award. Condition: For 5 (or 36%) of 14 projects tested, we noted deficient matches, as follows: See Schedule of Findings and Question Costs for chart/table. Cause: GHURA did not effectively monitor controls over compliance with applicable matching, level of effort, earmarking requirements. Effect: GHURA is in noncompliance with applicable matching, level of effort, earmarking requirements. The total questioned cost is $51,281. Recommendation: GHURA should strengthen monitoring controls over compliance with applicable matching, level of effort, earmarking requirements. Responsible personnel should coordinate with subrecipients to ascertain the funding source of the required and actual match. Prior to approving administrative costs, responsible personnel should verify cumulative administrative cost totals and compare such totals to the administrative cost ceilings to ascertain that such ceilings are not exceeded. Views of Responsible Officials: The Authority will review its accounting processes to accurately record and provide complete reports as required by the U.S. Housing and Urban Development (HUD), by the recommendations from HUD’s technical assistance, and by the updated Uniform Guidance requirements to report matching requirements. Responsible accounting and planning personnel will be trained on updated Uniform Guidance.
Finding 2023-003
Finding No.: 2023-003 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.EHV, COVID-19 14.HCC, 14.871, 14.879 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, the Uniform Reporting Standards require PHAs to submit timely GAAP-based unaudited financial information electronically to HUD. Amounts reported in the Financial Assessment Subsystem, FASS-PH, should be accurate. Condition: Unaudited amounts reported in certain key line items in the FASS-PH for FY 2023 do not agree with underlying accounting records, as follows: See Schedule of Findings and Question Costs for chart/table. Cause: GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements. Also, relative to equity line items, GHURA is unable to input accurate unaudited FY 2023 financial information in the FASS-PH because audited FY 2020, FY 2021, and FY 2022 financial information in the FASS-PH are yet to be certified. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2022-004 Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to reporting amounts in the FASS-PH, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, as recommended by HUD, GHURA should contract its current independent public accountant (IPA) to certify the FY 2020 and FY 2021 financial information in the FASS-PH since the predecessor IPA is no longer available to certify the information they audited. Views of Responsible Officials: Responsible accounting personnel coordinated and prioritized with HUD-Honolulu to resolve the submission of its unaudited and audited Fiscal Year 2020 and 2021 financial information in the Financial Assessment Sub-System (FASS-PH) as required from HUD-Honolulu by June 06, 2024. The Authority submitted the unaudited FY 2020 to HUD on May 18, 2024 and is in review by HUD. The unaudited FY 2021 is completed and inputted in the FASS-PH. To submit the audited FY 2020 and 2021, the audited submissions must be certified by an IPA before it is submitted to HUD. To get pass this step, the Authority is required to procure an Independent Public Auditor to certify the audited submissions for FY 2020 and FY 2021. The request for proposal is still ongoing. The audited FY 2022 was rejected by the current IPA on May 23, 2024. The Authority will be working with the IPA to submit the audited FY 2022 to HUD so that the Authority can meet the reporting requirements. Fiscal Year 2023 unaudited submission is in review with HUD and the audited FY 2023 submission will be worked on with the current IPA. Submission of the audited FY 2023 is contingent on the IPA’s agreement with the Authority. A waiver to submit the audited FY 2023 was submitted to HUD to request a due date on 09/01/2024.
Finding 2023-003
Finding No.: 2023-003 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.EHV, COVID-19 14.HCC, 14.871, 14.879 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, the Uniform Reporting Standards require PHAs to submit timely GAAP-based unaudited financial information electronically to HUD. Amounts reported in the Financial Assessment Subsystem, FASS-PH, should be accurate. Condition: Unaudited amounts reported in certain key line items in the FASS-PH for FY 2023 do not agree with underlying accounting records, as follows: See Schedule of Findings and Question Costs for chart/table. Cause: GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements. Also, relative to equity line items, GHURA is unable to input accurate unaudited FY 2023 financial information in the FASS-PH because audited FY 2020, FY 2021, and FY 2022 financial information in the FASS-PH are yet to be certified. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2022-004 Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to reporting amounts in the FASS-PH, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, as recommended by HUD, GHURA should contract its current independent public accountant (IPA) to certify the FY 2020 and FY 2021 financial information in the FASS-PH since the predecessor IPA is no longer available to certify the information they audited. Views of Responsible Officials: Responsible accounting personnel coordinated and prioritized with HUD-Honolulu to resolve the submission of its unaudited and audited Fiscal Year 2020 and 2021 financial information in the Financial Assessment Sub-System (FASS-PH) as required from HUD-Honolulu by June 06, 2024. The Authority submitted the unaudited FY 2020 to HUD on May 18, 2024 and is in review by HUD. The unaudited FY 2021 is completed and inputted in the FASS-PH. To submit the audited FY 2020 and 2021, the audited submissions must be certified by an IPA before it is submitted to HUD. To get pass this step, the Authority is required to procure an Independent Public Auditor to certify the audited submissions for FY 2020 and FY 2021. The request for proposal is still ongoing. The audited FY 2022 was rejected by the current IPA on May 23, 2024. The Authority will be working with the IPA to submit the audited FY 2022 to HUD so that the Authority can meet the reporting requirements. Fiscal Year 2023 unaudited submission is in review with HUD and the audited FY 2023 submission will be worked on with the current IPA. Submission of the audited FY 2023 is contingent on the IPA’s agreement with the Authority. A waiver to submit the audited FY 2023 was submitted to HUD to request a due date on 09/01/2024.
Finding 2023-003
Finding No.: 2023-003 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.EHV, COVID-19 14.HCC, 14.871, 14.879 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, the Uniform Reporting Standards require PHAs to submit timely GAAP-based unaudited financial information electronically to HUD. Amounts reported in the Financial Assessment Subsystem, FASS-PH, should be accurate. Condition: Unaudited amounts reported in certain key line items in the FASS-PH for FY 2023 do not agree with underlying accounting records, as follows: See Schedule of Findings and Question Costs for chart/table. Cause: GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements. Also, relative to equity line items, GHURA is unable to input accurate unaudited FY 2023 financial information in the FASS-PH because audited FY 2020, FY 2021, and FY 2022 financial information in the FASS-PH are yet to be certified. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2022-004 Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to reporting amounts in the FASS-PH, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, as recommended by HUD, GHURA should contract its current independent public accountant (IPA) to certify the FY 2020 and FY 2021 financial information in the FASS-PH since the predecessor IPA is no longer available to certify the information they audited. Views of Responsible Officials: Responsible accounting personnel coordinated and prioritized with HUD-Honolulu to resolve the submission of its unaudited and audited Fiscal Year 2020 and 2021 financial information in the Financial Assessment Sub-System (FASS-PH) as required from HUD-Honolulu by June 06, 2024. The Authority submitted the unaudited FY 2020 to HUD on May 18, 2024 and is in review by HUD. The unaudited FY 2021 is completed and inputted in the FASS-PH. To submit the audited FY 2020 and 2021, the audited submissions must be certified by an IPA before it is submitted to HUD. To get pass this step, the Authority is required to procure an Independent Public Auditor to certify the audited submissions for FY 2020 and FY 2021. The request for proposal is still ongoing. The audited FY 2022 was rejected by the current IPA on May 23, 2024. The Authority will be working with the IPA to submit the audited FY 2022 to HUD so that the Authority can meet the reporting requirements. Fiscal Year 2023 unaudited submission is in review with HUD and the audited FY 2023 submission will be worked on with the current IPA. Submission of the audited FY 2023 is contingent on the IPA’s agreement with the Authority. A waiver to submit the audited FY 2023 was submitted to HUD to request a due date on 09/01/2024.
Finding 2023-003
Finding No.: 2023-003 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.EHV, COVID-19 14.HCC, 14.871, 14.879 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, the Uniform Reporting Standards require PHAs to submit timely GAAP-based unaudited financial information electronically to HUD. Amounts reported in the Financial Assessment Subsystem, FASS-PH, should be accurate. Condition: Unaudited amounts reported in certain key line items in the FASS-PH for FY 2023 do not agree with underlying accounting records, as follows: See Schedule of Findings and Question Costs for chart/table. Cause: GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements. Also, relative to equity line items, GHURA is unable to input accurate unaudited FY 2023 financial information in the FASS-PH because audited FY 2020, FY 2021, and FY 2022 financial information in the FASS-PH are yet to be certified. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2022-004 Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to reporting amounts in the FASS-PH, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, as recommended by HUD, GHURA should contract its current independent public accountant (IPA) to certify the FY 2020 and FY 2021 financial information in the FASS-PH since the predecessor IPA is no longer available to certify the information they audited. Views of Responsible Officials: Responsible accounting personnel coordinated and prioritized with HUD-Honolulu to resolve the submission of its unaudited and audited Fiscal Year 2020 and 2021 financial information in the Financial Assessment Sub-System (FASS-PH) as required from HUD-Honolulu by June 06, 2024. The Authority submitted the unaudited FY 2020 to HUD on May 18, 2024 and is in review by HUD. The unaudited FY 2021 is completed and inputted in the FASS-PH. To submit the audited FY 2020 and 2021, the audited submissions must be certified by an IPA before it is submitted to HUD. To get pass this step, the Authority is required to procure an Independent Public Auditor to certify the audited submissions for FY 2020 and FY 2021. The request for proposal is still ongoing. The audited FY 2022 was rejected by the current IPA on May 23, 2024. The Authority will be working with the IPA to submit the audited FY 2022 to HUD so that the Authority can meet the reporting requirements. Fiscal Year 2023 unaudited submission is in review with HUD and the audited FY 2023 submission will be worked on with the current IPA. Submission of the audited FY 2023 is contingent on the IPA’s agreement with the Authority. A waiver to submit the audited FY 2023 was submitted to HUD to request a due date on 09/01/2024.
Finding 2023-004
Finding No.: 2023-004 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.EHV, COVID-19 14.HCC, 14.871, 14.879 Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for rolling forward equity balances, the Annual Contributions Contract (ACC) requires Public Housing Agencies (PHAs) to properly account for program activity by properly maintaining account balances, by supporting a proper roll-forward of equity with records and accounting transactions, and by correcting detected errors. Condition: Beginning balances of equity, including any adjustments by GHURA, per the FY2023 Trial Balance (TB) did not agree with the audited ending balances per the FY2022 Single Audit Report (SAR). We noted variances, as follows: See Schedule of Findings and Question Costs for chart/table. Cause: GHURA did not effectively enforce monitoring controls over compliance with special tests and provisions requirements for rolling forward equity balances. Effect: GHURA is in noncompliance with applicable special tests and provisions requirements for rolling forward equity balances. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2022-005 Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions requirements for rolling forward equity balances. Responsible personnel should reconcile the current year beginning balances with the prior year ending balances and should record adjustments, as necessary, to properly roll forward audited amounts. Views of Responsible Officials: Responsible accounting personnel coordinated and prioritized with HUD-Honolulu to resolve the submission of its unaudited and audited Fiscal Year 2020 and 2021 financial information in the Financial Assessment Sub-System (FASS-PH) as required from HUD-Honolulu by June 06, 2024. The Authority submitted the unaudited FY 2020 to HUD on May 18, 2024 and is in review by HUD. The unaudited FY 2021 is completed and inputted in the FASS-PH. To submit the audited FY 2020 and 2021, the audited submissions must be certified by an IPA before it is submitted to HUD. To get pass this step, the Authority is required to procure an Independent Public Auditor to certify the audited submissions for FY 2020 and FY 2021. The request for proposal is still ongoing. The audited FY 2022 was rejected by the current IPA on May 23, 2024. The Authority will be working with the IPA to submit the audited FY 2022 to HUD so that the Authority can meet the reporting requirements. Fiscal Year 2023 unaudited submission is in review with HUD and the audited FY 2023 submission will be worked on with the current IPA. Submission of the audited FY 2023 is contingent on the IPA’s agreement with the Authority. A waiver to submit the audited FY 2023 was submitted to HUD to request a due date on 09/01/2024.
Finding 2023-004
Finding No.: 2023-004 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.EHV, COVID-19 14.HCC, 14.871, 14.879 Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for rolling forward equity balances, the Annual Contributions Contract (ACC) requires Public Housing Agencies (PHAs) to properly account for program activity by properly maintaining account balances, by supporting a proper roll-forward of equity with records and accounting transactions, and by correcting detected errors. Condition: Beginning balances of equity, including any adjustments by GHURA, per the FY2023 Trial Balance (TB) did not agree with the audited ending balances per the FY2022 Single Audit Report (SAR). We noted variances, as follows: See Schedule of Findings and Question Costs for chart/table. Cause: GHURA did not effectively enforce monitoring controls over compliance with special tests and provisions requirements for rolling forward equity balances. Effect: GHURA is in noncompliance with applicable special tests and provisions requirements for rolling forward equity balances. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2022-005 Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions requirements for rolling forward equity balances. Responsible personnel should reconcile the current year beginning balances with the prior year ending balances and should record adjustments, as necessary, to properly roll forward audited amounts. Views of Responsible Officials: Responsible accounting personnel coordinated and prioritized with HUD-Honolulu to resolve the submission of its unaudited and audited Fiscal Year 2020 and 2021 financial information in the Financial Assessment Sub-System (FASS-PH) as required from HUD-Honolulu by June 06, 2024. The Authority submitted the unaudited FY 2020 to HUD on May 18, 2024 and is in review by HUD. The unaudited FY 2021 is completed and inputted in the FASS-PH. To submit the audited FY 2020 and 2021, the audited submissions must be certified by an IPA before it is submitted to HUD. To get pass this step, the Authority is required to procure an Independent Public Auditor to certify the audited submissions for FY 2020 and FY 2021. The request for proposal is still ongoing. The audited FY 2022 was rejected by the current IPA on May 23, 2024. The Authority will be working with the IPA to submit the audited FY 2022 to HUD so that the Authority can meet the reporting requirements. Fiscal Year 2023 unaudited submission is in review with HUD and the audited FY 2023 submission will be worked on with the current IPA. Submission of the audited FY 2023 is contingent on the IPA’s agreement with the Authority. A waiver to submit the audited FY 2023 was submitted to HUD to request a due date on 09/01/2024.
Finding 2023-004
Finding No.: 2023-004 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.EHV, COVID-19 14.HCC, 14.871, 14.879 Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for rolling forward equity balances, the Annual Contributions Contract (ACC) requires Public Housing Agencies (PHAs) to properly account for program activity by properly maintaining account balances, by supporting a proper roll-forward of equity with records and accounting transactions, and by correcting detected errors. Condition: Beginning balances of equity, including any adjustments by GHURA, per the FY2023 Trial Balance (TB) did not agree with the audited ending balances per the FY2022 Single Audit Report (SAR). We noted variances, as follows: See Schedule of Findings and Question Costs for chart/table. Cause: GHURA did not effectively enforce monitoring controls over compliance with special tests and provisions requirements for rolling forward equity balances. Effect: GHURA is in noncompliance with applicable special tests and provisions requirements for rolling forward equity balances. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2022-005 Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions requirements for rolling forward equity balances. Responsible personnel should reconcile the current year beginning balances with the prior year ending balances and should record adjustments, as necessary, to properly roll forward audited amounts. Views of Responsible Officials: Responsible accounting personnel coordinated and prioritized with HUD-Honolulu to resolve the submission of its unaudited and audited Fiscal Year 2020 and 2021 financial information in the Financial Assessment Sub-System (FASS-PH) as required from HUD-Honolulu by June 06, 2024. The Authority submitted the unaudited FY 2020 to HUD on May 18, 2024 and is in review by HUD. The unaudited FY 2021 is completed and inputted in the FASS-PH. To submit the audited FY 2020 and 2021, the audited submissions must be certified by an IPA before it is submitted to HUD. To get pass this step, the Authority is required to procure an Independent Public Auditor to certify the audited submissions for FY 2020 and FY 2021. The request for proposal is still ongoing. The audited FY 2022 was rejected by the current IPA on May 23, 2024. The Authority will be working with the IPA to submit the audited FY 2022 to HUD so that the Authority can meet the reporting requirements. Fiscal Year 2023 unaudited submission is in review with HUD and the audited FY 2023 submission will be worked on with the current IPA. Submission of the audited FY 2023 is contingent on the IPA’s agreement with the Authority. A waiver to submit the audited FY 2023 was submitted to HUD to request a due date on 09/01/2024.
Finding 2023-004
Finding No.: 2023-004 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.EHV, COVID-19 14.HCC, 14.871, 14.879 Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for rolling forward equity balances, the Annual Contributions Contract (ACC) requires Public Housing Agencies (PHAs) to properly account for program activity by properly maintaining account balances, by supporting a proper roll-forward of equity with records and accounting transactions, and by correcting detected errors. Condition: Beginning balances of equity, including any adjustments by GHURA, per the FY2023 Trial Balance (TB) did not agree with the audited ending balances per the FY2022 Single Audit Report (SAR). We noted variances, as follows: See Schedule of Findings and Question Costs for chart/table. Cause: GHURA did not effectively enforce monitoring controls over compliance with special tests and provisions requirements for rolling forward equity balances. Effect: GHURA is in noncompliance with applicable special tests and provisions requirements for rolling forward equity balances. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2022-005 Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions requirements for rolling forward equity balances. Responsible personnel should reconcile the current year beginning balances with the prior year ending balances and should record adjustments, as necessary, to properly roll forward audited amounts. Views of Responsible Officials: Responsible accounting personnel coordinated and prioritized with HUD-Honolulu to resolve the submission of its unaudited and audited Fiscal Year 2020 and 2021 financial information in the Financial Assessment Sub-System (FASS-PH) as required from HUD-Honolulu by June 06, 2024. The Authority submitted the unaudited FY 2020 to HUD on May 18, 2024 and is in review by HUD. The unaudited FY 2021 is completed and inputted in the FASS-PH. To submit the audited FY 2020 and 2021, the audited submissions must be certified by an IPA before it is submitted to HUD. To get pass this step, the Authority is required to procure an Independent Public Auditor to certify the audited submissions for FY 2020 and FY 2021. The request for proposal is still ongoing. The audited FY 2022 was rejected by the current IPA on May 23, 2024. The Authority will be working with the IPA to submit the audited FY 2022 to HUD so that the Authority can meet the reporting requirements. Fiscal Year 2023 unaudited submission is in review with HUD and the audited FY 2023 submission will be worked on with the current IPA. Submission of the audited FY 2023 is contingent on the IPA’s agreement with the Authority. A waiver to submit the audited FY 2023 was submitted to HUD to request a due date on 09/01/2024.
Finding 2023-001
Finding No.: 2023-001 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.225 CDBG - Entitlement Grants Cluster Federal Award No.: B22ST660001, COVID-19 B20SW660001, B20ST660001 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, reported amounts in the Integrated Disbursement and Information System (IDIS) should be accurate and complete. Also, recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: 1. Certain amounts reported in PR26 – CDBG Financial Summary Report, Program Year 2022, Grant No. B22ST660001, do not agree with underlying accounting records and result in obligations for planning and administration (PA) activities exceeding the 20-percent ceiling. See Schedule of Findings and Question Costs for chart/table. COVID-19 2. Certain amounts reported in PR26 – CDBG-CV Financial Summary Report, Grant No. B20SW660001 do not agree with underlying accounting records, as follows: See Schedule of Findings and Question Costs for chart/table. 3. Certain amounts reported in C04PR26 – CDBG Activity Summary by Selected Grant for Program Years do not agree with underlying accounting records, as follows: See Schedule of Findings and Question Costs for chart/table. 4. Subawards are not reported in FSRS, as follows: See Schedule of Findings and Question Costs for chart/table. Cause: GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost results because the variances do not represent Program overpayments. Identification as a Repeat Finding: 2022-001 Recommendation: Responsible personnel should strengthen monitoring controls over compliance with applicable reporting requirements. Prior to certifying IDIS reports, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, responsible personnel should monitor subawards for reporting in FSRS. Views of Responsible Officials: Condition 1, 2, and 3: The reporting and recording requirements in the Integrated Disbursement and Information System (IDIS), use and reconciliation of the CDBG Program is complex in nature. The Authority will review its accounting processes to accurately record and provide complete reports as required by the U.S. Department of Housing and Urban Development (HUD), by the recommendations from HUD’s technical assistance, and by the updated Uniform Guidance requirements. Responsible accounting and planning personnel will be trained on updated Uniform Guidance and the IDIS. Condition 4: The data for the reporting and recording requirements for subawards in the FSRS are currently entered in FY 2024. The Authority will review its accounting processes to continue to accurately record and provide complete reports as required by the U.S. Housing and Urban Development (HUD), by the recommendations from HUD’s technical assistance, and by the updated Uniform Guidance requirements. Responsible accounting and planning personnel will be trained on updated Uniform Guidance and the IDIS to enhance the reporting requirements.
Finding 2023-001
Finding No.: 2023-001 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.225 CDBG - Entitlement Grants Cluster Federal Award No.: B22ST660001, COVID-19 B20SW660001, B20ST660001 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, reported amounts in the Integrated Disbursement and Information System (IDIS) should be accurate and complete. Also, recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: 1. Certain amounts reported in PR26 – CDBG Financial Summary Report, Program Year 2022, Grant No. B22ST660001, do not agree with underlying accounting records and result in obligations for planning and administration (PA) activities exceeding the 20-percent ceiling. See Schedule of Findings and Question Costs for chart/table. COVID-19 2. Certain amounts reported in PR26 – CDBG-CV Financial Summary Report, Grant No. B20SW660001 do not agree with underlying accounting records, as follows: See Schedule of Findings and Question Costs for chart/table. 3. Certain amounts reported in C04PR26 – CDBG Activity Summary by Selected Grant for Program Years do not agree with underlying accounting records, as follows: See Schedule of Findings and Question Costs for chart/table. 4. Subawards are not reported in FSRS, as follows: See Schedule of Findings and Question Costs for chart/table. Cause: GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost results because the variances do not represent Program overpayments. Identification as a Repeat Finding: 2022-001 Recommendation: Responsible personnel should strengthen monitoring controls over compliance with applicable reporting requirements. Prior to certifying IDIS reports, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, responsible personnel should monitor subawards for reporting in FSRS. Views of Responsible Officials: Condition 1, 2, and 3: The reporting and recording requirements in the Integrated Disbursement and Information System (IDIS), use and reconciliation of the CDBG Program is complex in nature. The Authority will review its accounting processes to accurately record and provide complete reports as required by the U.S. Department of Housing and Urban Development (HUD), by the recommendations from HUD’s technical assistance, and by the updated Uniform Guidance requirements. Responsible accounting and planning personnel will be trained on updated Uniform Guidance and the IDIS. Condition 4: The data for the reporting and recording requirements for subawards in the FSRS are currently entered in FY 2024. The Authority will review its accounting processes to continue to accurately record and provide complete reports as required by the U.S. Housing and Urban Development (HUD), by the recommendations from HUD’s technical assistance, and by the updated Uniform Guidance requirements. Responsible accounting and planning personnel will be trained on updated Uniform Guidance and the IDIS to enhance the reporting requirements.
Finding 2023-002
Finding No.: 2023-002 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.267 Continuum of Care Program Area: Matching, Level of Effort, Earmarking Questioned Costs: $51,281 Criteria: In accordance with applicable matching requirements, the recipient or subrecipient must match all grant funds, except for leasing funds, with no less than 25 percent of cash or in-kind contributions from other sources that is verifiable from the non-federal entity’s records and are not included as contributions for any other federal award. Condition: For 5 (or 36%) of 14 projects tested, we noted deficient matches, as follows: See Schedule of Findings and Question Costs for chart/table. Cause: GHURA did not effectively monitor controls over compliance with applicable matching, level of effort, earmarking requirements. Effect: GHURA is in noncompliance with applicable matching, level of effort, earmarking requirements. The total questioned cost is $51,281. Recommendation: GHURA should strengthen monitoring controls over compliance with applicable matching, level of effort, earmarking requirements. Responsible personnel should coordinate with subrecipients to ascertain the funding source of the required and actual match. Prior to approving administrative costs, responsible personnel should verify cumulative administrative cost totals and compare such totals to the administrative cost ceilings to ascertain that such ceilings are not exceeded. Views of Responsible Officials: The Authority will review its accounting processes to accurately record and provide complete reports as required by the U.S. Housing and Urban Development (HUD), by the recommendations from HUD’s technical assistance, and by the updated Uniform Guidance requirements to report matching requirements. Responsible accounting and planning personnel will be trained on updated Uniform Guidance.
Finding 2023-003
Finding No.: 2023-003 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.EHV, COVID-19 14.HCC, 14.871, 14.879 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, the Uniform Reporting Standards require PHAs to submit timely GAAP-based unaudited financial information electronically to HUD. Amounts reported in the Financial Assessment Subsystem, FASS-PH, should be accurate. Condition: Unaudited amounts reported in certain key line items in the FASS-PH for FY 2023 do not agree with underlying accounting records, as follows: See Schedule of Findings and Question Costs for chart/table. Cause: GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements. Also, relative to equity line items, GHURA is unable to input accurate unaudited FY 2023 financial information in the FASS-PH because audited FY 2020, FY 2021, and FY 2022 financial information in the FASS-PH are yet to be certified. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2022-004 Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to reporting amounts in the FASS-PH, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, as recommended by HUD, GHURA should contract its current independent public accountant (IPA) to certify the FY 2020 and FY 2021 financial information in the FASS-PH since the predecessor IPA is no longer available to certify the information they audited. Views of Responsible Officials: Responsible accounting personnel coordinated and prioritized with HUD-Honolulu to resolve the submission of its unaudited and audited Fiscal Year 2020 and 2021 financial information in the Financial Assessment Sub-System (FASS-PH) as required from HUD-Honolulu by June 06, 2024. The Authority submitted the unaudited FY 2020 to HUD on May 18, 2024 and is in review by HUD. The unaudited FY 2021 is completed and inputted in the FASS-PH. To submit the audited FY 2020 and 2021, the audited submissions must be certified by an IPA before it is submitted to HUD. To get pass this step, the Authority is required to procure an Independent Public Auditor to certify the audited submissions for FY 2020 and FY 2021. The request for proposal is still ongoing. The audited FY 2022 was rejected by the current IPA on May 23, 2024. The Authority will be working with the IPA to submit the audited FY 2022 to HUD so that the Authority can meet the reporting requirements. Fiscal Year 2023 unaudited submission is in review with HUD and the audited FY 2023 submission will be worked on with the current IPA. Submission of the audited FY 2023 is contingent on the IPA’s agreement with the Authority. A waiver to submit the audited FY 2023 was submitted to HUD to request a due date on 09/01/2024.
Finding 2023-003
Finding No.: 2023-003 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.EHV, COVID-19 14.HCC, 14.871, 14.879 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, the Uniform Reporting Standards require PHAs to submit timely GAAP-based unaudited financial information electronically to HUD. Amounts reported in the Financial Assessment Subsystem, FASS-PH, should be accurate. Condition: Unaudited amounts reported in certain key line items in the FASS-PH for FY 2023 do not agree with underlying accounting records, as follows: See Schedule of Findings and Question Costs for chart/table. Cause: GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements. Also, relative to equity line items, GHURA is unable to input accurate unaudited FY 2023 financial information in the FASS-PH because audited FY 2020, FY 2021, and FY 2022 financial information in the FASS-PH are yet to be certified. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2022-004 Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to reporting amounts in the FASS-PH, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, as recommended by HUD, GHURA should contract its current independent public accountant (IPA) to certify the FY 2020 and FY 2021 financial information in the FASS-PH since the predecessor IPA is no longer available to certify the information they audited. Views of Responsible Officials: Responsible accounting personnel coordinated and prioritized with HUD-Honolulu to resolve the submission of its unaudited and audited Fiscal Year 2020 and 2021 financial information in the Financial Assessment Sub-System (FASS-PH) as required from HUD-Honolulu by June 06, 2024. The Authority submitted the unaudited FY 2020 to HUD on May 18, 2024 and is in review by HUD. The unaudited FY 2021 is completed and inputted in the FASS-PH. To submit the audited FY 2020 and 2021, the audited submissions must be certified by an IPA before it is submitted to HUD. To get pass this step, the Authority is required to procure an Independent Public Auditor to certify the audited submissions for FY 2020 and FY 2021. The request for proposal is still ongoing. The audited FY 2022 was rejected by the current IPA on May 23, 2024. The Authority will be working with the IPA to submit the audited FY 2022 to HUD so that the Authority can meet the reporting requirements. Fiscal Year 2023 unaudited submission is in review with HUD and the audited FY 2023 submission will be worked on with the current IPA. Submission of the audited FY 2023 is contingent on the IPA’s agreement with the Authority. A waiver to submit the audited FY 2023 was submitted to HUD to request a due date on 09/01/2024.
Finding 2023-003
Finding No.: 2023-003 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.EHV, COVID-19 14.HCC, 14.871, 14.879 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, the Uniform Reporting Standards require PHAs to submit timely GAAP-based unaudited financial information electronically to HUD. Amounts reported in the Financial Assessment Subsystem, FASS-PH, should be accurate. Condition: Unaudited amounts reported in certain key line items in the FASS-PH for FY 2023 do not agree with underlying accounting records, as follows: See Schedule of Findings and Question Costs for chart/table. Cause: GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements. Also, relative to equity line items, GHURA is unable to input accurate unaudited FY 2023 financial information in the FASS-PH because audited FY 2020, FY 2021, and FY 2022 financial information in the FASS-PH are yet to be certified. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2022-004 Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to reporting amounts in the FASS-PH, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, as recommended by HUD, GHURA should contract its current independent public accountant (IPA) to certify the FY 2020 and FY 2021 financial information in the FASS-PH since the predecessor IPA is no longer available to certify the information they audited. Views of Responsible Officials: Responsible accounting personnel coordinated and prioritized with HUD-Honolulu to resolve the submission of its unaudited and audited Fiscal Year 2020 and 2021 financial information in the Financial Assessment Sub-System (FASS-PH) as required from HUD-Honolulu by June 06, 2024. The Authority submitted the unaudited FY 2020 to HUD on May 18, 2024 and is in review by HUD. The unaudited FY 2021 is completed and inputted in the FASS-PH. To submit the audited FY 2020 and 2021, the audited submissions must be certified by an IPA before it is submitted to HUD. To get pass this step, the Authority is required to procure an Independent Public Auditor to certify the audited submissions for FY 2020 and FY 2021. The request for proposal is still ongoing. The audited FY 2022 was rejected by the current IPA on May 23, 2024. The Authority will be working with the IPA to submit the audited FY 2022 to HUD so that the Authority can meet the reporting requirements. Fiscal Year 2023 unaudited submission is in review with HUD and the audited FY 2023 submission will be worked on with the current IPA. Submission of the audited FY 2023 is contingent on the IPA’s agreement with the Authority. A waiver to submit the audited FY 2023 was submitted to HUD to request a due date on 09/01/2024.
Finding 2023-003
Finding No.: 2023-003 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.EHV, COVID-19 14.HCC, 14.871, 14.879 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, the Uniform Reporting Standards require PHAs to submit timely GAAP-based unaudited financial information electronically to HUD. Amounts reported in the Financial Assessment Subsystem, FASS-PH, should be accurate. Condition: Unaudited amounts reported in certain key line items in the FASS-PH for FY 2023 do not agree with underlying accounting records, as follows: See Schedule of Findings and Question Costs for chart/table. Cause: GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements. Also, relative to equity line items, GHURA is unable to input accurate unaudited FY 2023 financial information in the FASS-PH because audited FY 2020, FY 2021, and FY 2022 financial information in the FASS-PH are yet to be certified. Effect: GHURA is in noncompliance with applicable reporting requirements. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2022-004 Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to reporting amounts in the FASS-PH, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, as recommended by HUD, GHURA should contract its current independent public accountant (IPA) to certify the FY 2020 and FY 2021 financial information in the FASS-PH since the predecessor IPA is no longer available to certify the information they audited. Views of Responsible Officials: Responsible accounting personnel coordinated and prioritized with HUD-Honolulu to resolve the submission of its unaudited and audited Fiscal Year 2020 and 2021 financial information in the Financial Assessment Sub-System (FASS-PH) as required from HUD-Honolulu by June 06, 2024. The Authority submitted the unaudited FY 2020 to HUD on May 18, 2024 and is in review by HUD. The unaudited FY 2021 is completed and inputted in the FASS-PH. To submit the audited FY 2020 and 2021, the audited submissions must be certified by an IPA before it is submitted to HUD. To get pass this step, the Authority is required to procure an Independent Public Auditor to certify the audited submissions for FY 2020 and FY 2021. The request for proposal is still ongoing. The audited FY 2022 was rejected by the current IPA on May 23, 2024. The Authority will be working with the IPA to submit the audited FY 2022 to HUD so that the Authority can meet the reporting requirements. Fiscal Year 2023 unaudited submission is in review with HUD and the audited FY 2023 submission will be worked on with the current IPA. Submission of the audited FY 2023 is contingent on the IPA’s agreement with the Authority. A waiver to submit the audited FY 2023 was submitted to HUD to request a due date on 09/01/2024.
Finding 2023-004
Finding No.: 2023-004 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.EHV, COVID-19 14.HCC, 14.871, 14.879 Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for rolling forward equity balances, the Annual Contributions Contract (ACC) requires Public Housing Agencies (PHAs) to properly account for program activity by properly maintaining account balances, by supporting a proper roll-forward of equity with records and accounting transactions, and by correcting detected errors. Condition: Beginning balances of equity, including any adjustments by GHURA, per the FY2023 Trial Balance (TB) did not agree with the audited ending balances per the FY2022 Single Audit Report (SAR). We noted variances, as follows: See Schedule of Findings and Question Costs for chart/table. Cause: GHURA did not effectively enforce monitoring controls over compliance with special tests and provisions requirements for rolling forward equity balances. Effect: GHURA is in noncompliance with applicable special tests and provisions requirements for rolling forward equity balances. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2022-005 Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions requirements for rolling forward equity balances. Responsible personnel should reconcile the current year beginning balances with the prior year ending balances and should record adjustments, as necessary, to properly roll forward audited amounts. Views of Responsible Officials: Responsible accounting personnel coordinated and prioritized with HUD-Honolulu to resolve the submission of its unaudited and audited Fiscal Year 2020 and 2021 financial information in the Financial Assessment Sub-System (FASS-PH) as required from HUD-Honolulu by June 06, 2024. The Authority submitted the unaudited FY 2020 to HUD on May 18, 2024 and is in review by HUD. The unaudited FY 2021 is completed and inputted in the FASS-PH. To submit the audited FY 2020 and 2021, the audited submissions must be certified by an IPA before it is submitted to HUD. To get pass this step, the Authority is required to procure an Independent Public Auditor to certify the audited submissions for FY 2020 and FY 2021. The request for proposal is still ongoing. The audited FY 2022 was rejected by the current IPA on May 23, 2024. The Authority will be working with the IPA to submit the audited FY 2022 to HUD so that the Authority can meet the reporting requirements. Fiscal Year 2023 unaudited submission is in review with HUD and the audited FY 2023 submission will be worked on with the current IPA. Submission of the audited FY 2023 is contingent on the IPA’s agreement with the Authority. A waiver to submit the audited FY 2023 was submitted to HUD to request a due date on 09/01/2024.
Finding 2023-004
Finding No.: 2023-004 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.EHV, COVID-19 14.HCC, 14.871, 14.879 Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for rolling forward equity balances, the Annual Contributions Contract (ACC) requires Public Housing Agencies (PHAs) to properly account for program activity by properly maintaining account balances, by supporting a proper roll-forward of equity with records and accounting transactions, and by correcting detected errors. Condition: Beginning balances of equity, including any adjustments by GHURA, per the FY2023 Trial Balance (TB) did not agree with the audited ending balances per the FY2022 Single Audit Report (SAR). We noted variances, as follows: See Schedule of Findings and Question Costs for chart/table. Cause: GHURA did not effectively enforce monitoring controls over compliance with special tests and provisions requirements for rolling forward equity balances. Effect: GHURA is in noncompliance with applicable special tests and provisions requirements for rolling forward equity balances. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2022-005 Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions requirements for rolling forward equity balances. Responsible personnel should reconcile the current year beginning balances with the prior year ending balances and should record adjustments, as necessary, to properly roll forward audited amounts. Views of Responsible Officials: Responsible accounting personnel coordinated and prioritized with HUD-Honolulu to resolve the submission of its unaudited and audited Fiscal Year 2020 and 2021 financial information in the Financial Assessment Sub-System (FASS-PH) as required from HUD-Honolulu by June 06, 2024. The Authority submitted the unaudited FY 2020 to HUD on May 18, 2024 and is in review by HUD. The unaudited FY 2021 is completed and inputted in the FASS-PH. To submit the audited FY 2020 and 2021, the audited submissions must be certified by an IPA before it is submitted to HUD. To get pass this step, the Authority is required to procure an Independent Public Auditor to certify the audited submissions for FY 2020 and FY 2021. The request for proposal is still ongoing. The audited FY 2022 was rejected by the current IPA on May 23, 2024. The Authority will be working with the IPA to submit the audited FY 2022 to HUD so that the Authority can meet the reporting requirements. Fiscal Year 2023 unaudited submission is in review with HUD and the audited FY 2023 submission will be worked on with the current IPA. Submission of the audited FY 2023 is contingent on the IPA’s agreement with the Authority. A waiver to submit the audited FY 2023 was submitted to HUD to request a due date on 09/01/2024.
Finding 2023-004
Finding No.: 2023-004 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.EHV, COVID-19 14.HCC, 14.871, 14.879 Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for rolling forward equity balances, the Annual Contributions Contract (ACC) requires Public Housing Agencies (PHAs) to properly account for program activity by properly maintaining account balances, by supporting a proper roll-forward of equity with records and accounting transactions, and by correcting detected errors. Condition: Beginning balances of equity, including any adjustments by GHURA, per the FY2023 Trial Balance (TB) did not agree with the audited ending balances per the FY2022 Single Audit Report (SAR). We noted variances, as follows: See Schedule of Findings and Question Costs for chart/table. Cause: GHURA did not effectively enforce monitoring controls over compliance with special tests and provisions requirements for rolling forward equity balances. Effect: GHURA is in noncompliance with applicable special tests and provisions requirements for rolling forward equity balances. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2022-005 Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions requirements for rolling forward equity balances. Responsible personnel should reconcile the current year beginning balances with the prior year ending balances and should record adjustments, as necessary, to properly roll forward audited amounts. Views of Responsible Officials: Responsible accounting personnel coordinated and prioritized with HUD-Honolulu to resolve the submission of its unaudited and audited Fiscal Year 2020 and 2021 financial information in the Financial Assessment Sub-System (FASS-PH) as required from HUD-Honolulu by June 06, 2024. The Authority submitted the unaudited FY 2020 to HUD on May 18, 2024 and is in review by HUD. The unaudited FY 2021 is completed and inputted in the FASS-PH. To submit the audited FY 2020 and 2021, the audited submissions must be certified by an IPA before it is submitted to HUD. To get pass this step, the Authority is required to procure an Independent Public Auditor to certify the audited submissions for FY 2020 and FY 2021. The request for proposal is still ongoing. The audited FY 2022 was rejected by the current IPA on May 23, 2024. The Authority will be working with the IPA to submit the audited FY 2022 to HUD so that the Authority can meet the reporting requirements. Fiscal Year 2023 unaudited submission is in review with HUD and the audited FY 2023 submission will be worked on with the current IPA. Submission of the audited FY 2023 is contingent on the IPA’s agreement with the Authority. A waiver to submit the audited FY 2023 was submitted to HUD to request a due date on 09/01/2024.
Finding 2023-004
Finding No.: 2023-004 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.EHV, COVID-19 14.HCC, 14.871, 14.879 Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for rolling forward equity balances, the Annual Contributions Contract (ACC) requires Public Housing Agencies (PHAs) to properly account for program activity by properly maintaining account balances, by supporting a proper roll-forward of equity with records and accounting transactions, and by correcting detected errors. Condition: Beginning balances of equity, including any adjustments by GHURA, per the FY2023 Trial Balance (TB) did not agree with the audited ending balances per the FY2022 Single Audit Report (SAR). We noted variances, as follows: See Schedule of Findings and Question Costs for chart/table. Cause: GHURA did not effectively enforce monitoring controls over compliance with special tests and provisions requirements for rolling forward equity balances. Effect: GHURA is in noncompliance with applicable special tests and provisions requirements for rolling forward equity balances. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2022-005 Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions requirements for rolling forward equity balances. Responsible personnel should reconcile the current year beginning balances with the prior year ending balances and should record adjustments, as necessary, to properly roll forward audited amounts. Views of Responsible Officials: Responsible accounting personnel coordinated and prioritized with HUD-Honolulu to resolve the submission of its unaudited and audited Fiscal Year 2020 and 2021 financial information in the Financial Assessment Sub-System (FASS-PH) as required from HUD-Honolulu by June 06, 2024. The Authority submitted the unaudited FY 2020 to HUD on May 18, 2024 and is in review by HUD. The unaudited FY 2021 is completed and inputted in the FASS-PH. To submit the audited FY 2020 and 2021, the audited submissions must be certified by an IPA before it is submitted to HUD. To get pass this step, the Authority is required to procure an Independent Public Auditor to certify the audited submissions for FY 2020 and FY 2021. The request for proposal is still ongoing. The audited FY 2022 was rejected by the current IPA on May 23, 2024. The Authority will be working with the IPA to submit the audited FY 2022 to HUD so that the Authority can meet the reporting requirements. Fiscal Year 2023 unaudited submission is in review with HUD and the audited FY 2023 submission will be worked on with the current IPA. Submission of the audited FY 2023 is contingent on the IPA’s agreement with the Authority. A waiver to submit the audited FY 2023 was submitted to HUD to request a due date on 09/01/2024.