FAC Explorer

Audit 31693

FY End
2022-03-31
Total Expended
$44.59M
Findings
8
Programs
7
Organization: Springfield Housing Authority (MA)
Year: 2022 Accepted: 2022-12-29
Auditor: Dooley & Vicars CPAS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
37532 2022-001 - Yes N
37533 2022-002 - Yes N
37534 2022-001 - Yes N
37535 2022-002 - Yes N
613974 2022-001 - Yes N
613975 2022-002 - Yes N
613976 2022-001 - Yes N
613977 2022-002 - Yes N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $30.04M Yes 2
14.872 Public Housing Capital Fund $2.61M - 0
14.182 Section 8 New Construction and Substantial Rehabilitation $711,704 - 0
14.879 Mainstream Vouchers $262,429 Yes 2
14.850 Public and Indian Housing $167,709 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $70,813 - 0
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $32,535 - 0

Contacts

Name Title Type
REEUQA24ZX31 Michele Decoteau Auditee
4137854520 Jake Dooley Auditor
No contacts on file

Notes to SEFA

Title: Program Costs Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Springfield Housing Authority under programs of the federal government for the year ended March 31, 2022. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Because the schedule presents only a selected portion of the operations of the Springfield Housing Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Springfield Housing Authority. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The amounts shown as current year expenditures represent only the federal and state portion of the actual program costs. Actual program costs, including the Housing Authoritys portion, may be more than shown.
Title: Award Balance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Springfield Housing Authority under programs of the federal government for the year ended March 31, 2022. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Because the schedule presents only a selected portion of the operations of the Springfield Housing Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Springfield Housing Authority. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. On the Housing Choice Voucher program, the Authority receives annual funds based on an annual estimate of need. Unexpended grant funds are available to meet subsequent year HAP shortfalls.
Title: Major Programs Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Springfield Housing Authority under programs of the federal government for the year ended March 31, 2022. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Because the schedule presents only a selected portion of the operations of the Springfield Housing Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Springfield Housing Authority. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The (*) to the right of a CFDA number identifies the grant as a major federal program as defined by Uniform Guidance.

Finding Details

Finding 2022-001
Finding No. 2022-001 ? CFDA No. 14.871 ? Special Tests and Provisions CONDITION: The Authority failed to document annual Housing Quality Standards (HQS) inspections in accordance with its Administrative Plan and HUD regulations. CRITERIA: PHAs are required to inspect units leased to Housing Choice Voucher program participants at least annually and prepare unit inspection reports in accordance with 21 CFR 982.158(d). QUESTIONED COSTS: The amount of questioned costs could not be determined. CONTEXT: During audit fieldwork, 40 HAP contract files from a statistically valid sample were examined for compliance with annual HQS inspection requirements. Of the 40 files examined, nine (9) files did not contain current annual inspection reports. EFFECT: The Authority is not in compliance with federal regulations regarding HQS inspections and documentation. This could result in unallowable HAP payments to owners of units that do not meet required Housing Quality Standards. CAUSE: The overall cause was a lack of management oversight and quality control over this program. RECOMMENDATION: The Authority should implement greater oversight over the Housing Choice Voucher program to ensure that annual inspections are completed and documented at least annually as required. The Authority indicated in the 2021 Corrective Action plan they hope to have a process in place for this by October 1, 2022, after the conclusion of this period under audit.
Finding 2022-002
Finding No. 2022-002 ? CFDA 14.871 ? Special Tests and Provisions ? Rent Reasonableness CONDITION: The Authority failed to employ an effective methodology to determine and document the reasonableness of rents charged by owners to Housing Choice Voucher participants in accordance with its written Administrative Plan and HUD regulations. CRITERIA: PHAs are required to determine whether rents charged by owners to Housing Choice Voucher program participants are reasonable, with respect to comparable unassisted units; prior to entering into HAP contracts; when there is a 5 percent or more decrease in the FMR within 60 days of the HAP contract anniversary; and prior to approving any subsequent rent increases in accordance with 24 CFR 982.507. QUESTIONED COSTS: The amount of questioned costs could not be determined. CONTEXT: During audit fieldwork, 40 HAP contract files from a statistically valid sample were examined for compliance with rent reasonableness determination criteria. Of the 40 files examined, 6 files did not contain evidence to support that sufficient steps had been taken to determine that HAP contract rents paid to owners were reasonable. EFFECT: Failure to determine rent reasonableness provides no assurance that HUD funds are being used efficiently as it may lead to the approval of rents that are too high. CAUSE: The overall cause was a lack of management oversight and quality control over this program. RECOMMENDATION: The Authority should implement greater oversight over the Housing Choice Voucher program and provide additional training to staff on determining rent reasonableness in accordance with SHA?s Administrative Plan and HUD regulations. The Authority indicated in the 2021 Corrective Action plan they hope to have a process in place for this by October 1, 2022, after the conclusion of this period under audit.
Finding 2022-001
Finding No. 2022-001 ? CFDA No. 14.871 ? Special Tests and Provisions CONDITION: The Authority failed to document annual Housing Quality Standards (HQS) inspections in accordance with its Administrative Plan and HUD regulations. CRITERIA: PHAs are required to inspect units leased to Housing Choice Voucher program participants at least annually and prepare unit inspection reports in accordance with 21 CFR 982.158(d). QUESTIONED COSTS: The amount of questioned costs could not be determined. CONTEXT: During audit fieldwork, 40 HAP contract files from a statistically valid sample were examined for compliance with annual HQS inspection requirements. Of the 40 files examined, nine (9) files did not contain current annual inspection reports. EFFECT: The Authority is not in compliance with federal regulations regarding HQS inspections and documentation. This could result in unallowable HAP payments to owners of units that do not meet required Housing Quality Standards. CAUSE: The overall cause was a lack of management oversight and quality control over this program. RECOMMENDATION: The Authority should implement greater oversight over the Housing Choice Voucher program to ensure that annual inspections are completed and documented at least annually as required. The Authority indicated in the 2021 Corrective Action plan they hope to have a process in place for this by October 1, 2022, after the conclusion of this period under audit.
Finding 2022-002
Finding No. 2022-002 ? CFDA 14.871 ? Special Tests and Provisions ? Rent Reasonableness CONDITION: The Authority failed to employ an effective methodology to determine and document the reasonableness of rents charged by owners to Housing Choice Voucher participants in accordance with its written Administrative Plan and HUD regulations. CRITERIA: PHAs are required to determine whether rents charged by owners to Housing Choice Voucher program participants are reasonable, with respect to comparable unassisted units; prior to entering into HAP contracts; when there is a 5 percent or more decrease in the FMR within 60 days of the HAP contract anniversary; and prior to approving any subsequent rent increases in accordance with 24 CFR 982.507. QUESTIONED COSTS: The amount of questioned costs could not be determined. CONTEXT: During audit fieldwork, 40 HAP contract files from a statistically valid sample were examined for compliance with rent reasonableness determination criteria. Of the 40 files examined, 6 files did not contain evidence to support that sufficient steps had been taken to determine that HAP contract rents paid to owners were reasonable. EFFECT: Failure to determine rent reasonableness provides no assurance that HUD funds are being used efficiently as it may lead to the approval of rents that are too high. CAUSE: The overall cause was a lack of management oversight and quality control over this program. RECOMMENDATION: The Authority should implement greater oversight over the Housing Choice Voucher program and provide additional training to staff on determining rent reasonableness in accordance with SHA?s Administrative Plan and HUD regulations. The Authority indicated in the 2021 Corrective Action plan they hope to have a process in place for this by October 1, 2022, after the conclusion of this period under audit.
Finding 2022-001
Finding No. 2022-001 ? CFDA No. 14.871 ? Special Tests and Provisions CONDITION: The Authority failed to document annual Housing Quality Standards (HQS) inspections in accordance with its Administrative Plan and HUD regulations. CRITERIA: PHAs are required to inspect units leased to Housing Choice Voucher program participants at least annually and prepare unit inspection reports in accordance with 21 CFR 982.158(d). QUESTIONED COSTS: The amount of questioned costs could not be determined. CONTEXT: During audit fieldwork, 40 HAP contract files from a statistically valid sample were examined for compliance with annual HQS inspection requirements. Of the 40 files examined, nine (9) files did not contain current annual inspection reports. EFFECT: The Authority is not in compliance with federal regulations regarding HQS inspections and documentation. This could result in unallowable HAP payments to owners of units that do not meet required Housing Quality Standards. CAUSE: The overall cause was a lack of management oversight and quality control over this program. RECOMMENDATION: The Authority should implement greater oversight over the Housing Choice Voucher program to ensure that annual inspections are completed and documented at least annually as required. The Authority indicated in the 2021 Corrective Action plan they hope to have a process in place for this by October 1, 2022, after the conclusion of this period under audit.
Finding 2022-002
Finding No. 2022-002 ? CFDA 14.871 ? Special Tests and Provisions ? Rent Reasonableness CONDITION: The Authority failed to employ an effective methodology to determine and document the reasonableness of rents charged by owners to Housing Choice Voucher participants in accordance with its written Administrative Plan and HUD regulations. CRITERIA: PHAs are required to determine whether rents charged by owners to Housing Choice Voucher program participants are reasonable, with respect to comparable unassisted units; prior to entering into HAP contracts; when there is a 5 percent or more decrease in the FMR within 60 days of the HAP contract anniversary; and prior to approving any subsequent rent increases in accordance with 24 CFR 982.507. QUESTIONED COSTS: The amount of questioned costs could not be determined. CONTEXT: During audit fieldwork, 40 HAP contract files from a statistically valid sample were examined for compliance with rent reasonableness determination criteria. Of the 40 files examined, 6 files did not contain evidence to support that sufficient steps had been taken to determine that HAP contract rents paid to owners were reasonable. EFFECT: Failure to determine rent reasonableness provides no assurance that HUD funds are being used efficiently as it may lead to the approval of rents that are too high. CAUSE: The overall cause was a lack of management oversight and quality control over this program. RECOMMENDATION: The Authority should implement greater oversight over the Housing Choice Voucher program and provide additional training to staff on determining rent reasonableness in accordance with SHA?s Administrative Plan and HUD regulations. The Authority indicated in the 2021 Corrective Action plan they hope to have a process in place for this by October 1, 2022, after the conclusion of this period under audit.
Finding 2022-001
Finding No. 2022-001 ? CFDA No. 14.871 ? Special Tests and Provisions CONDITION: The Authority failed to document annual Housing Quality Standards (HQS) inspections in accordance with its Administrative Plan and HUD regulations. CRITERIA: PHAs are required to inspect units leased to Housing Choice Voucher program participants at least annually and prepare unit inspection reports in accordance with 21 CFR 982.158(d). QUESTIONED COSTS: The amount of questioned costs could not be determined. CONTEXT: During audit fieldwork, 40 HAP contract files from a statistically valid sample were examined for compliance with annual HQS inspection requirements. Of the 40 files examined, nine (9) files did not contain current annual inspection reports. EFFECT: The Authority is not in compliance with federal regulations regarding HQS inspections and documentation. This could result in unallowable HAP payments to owners of units that do not meet required Housing Quality Standards. CAUSE: The overall cause was a lack of management oversight and quality control over this program. RECOMMENDATION: The Authority should implement greater oversight over the Housing Choice Voucher program to ensure that annual inspections are completed and documented at least annually as required. The Authority indicated in the 2021 Corrective Action plan they hope to have a process in place for this by October 1, 2022, after the conclusion of this period under audit.
Finding 2022-002
Finding No. 2022-002 ? CFDA 14.871 ? Special Tests and Provisions ? Rent Reasonableness CONDITION: The Authority failed to employ an effective methodology to determine and document the reasonableness of rents charged by owners to Housing Choice Voucher participants in accordance with its written Administrative Plan and HUD regulations. CRITERIA: PHAs are required to determine whether rents charged by owners to Housing Choice Voucher program participants are reasonable, with respect to comparable unassisted units; prior to entering into HAP contracts; when there is a 5 percent or more decrease in the FMR within 60 days of the HAP contract anniversary; and prior to approving any subsequent rent increases in accordance with 24 CFR 982.507. QUESTIONED COSTS: The amount of questioned costs could not be determined. CONTEXT: During audit fieldwork, 40 HAP contract files from a statistically valid sample were examined for compliance with rent reasonableness determination criteria. Of the 40 files examined, 6 files did not contain evidence to support that sufficient steps had been taken to determine that HAP contract rents paid to owners were reasonable. EFFECT: Failure to determine rent reasonableness provides no assurance that HUD funds are being used efficiently as it may lead to the approval of rents that are too high. CAUSE: The overall cause was a lack of management oversight and quality control over this program. RECOMMENDATION: The Authority should implement greater oversight over the Housing Choice Voucher program and provide additional training to staff on determining rent reasonableness in accordance with SHA?s Administrative Plan and HUD regulations. The Authority indicated in the 2021 Corrective Action plan they hope to have a process in place for this by October 1, 2022, after the conclusion of this period under audit.