FAC Explorer

Audit 319475

FY End
2020-12-31
Total Expended
$46.99M
Findings
6
Programs
9
Organization: Housing Authority of the City of Durham (NC)
Year: 2020 Accepted: 2024-09-12
Auditor: Novogradac & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
496658 2020-002 Material Weakness Yes E
496659 2020-002 Material Weakness - E
496660 2020-003 Material Weakness Yes E
1073100 2020-002 Material Weakness Yes E
1073101 2020-002 Material Weakness - E
1073102 2020-003 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $23.12M Yes 1
14.872 Public Housing Capital Fund $13.68M - 0
14.850 Public and Indian Housing $8.93M - 1
14.218 Community Development Block Grants/entitlement Grants $513,136 - 0
14.879 Mainstream Vouchers $188,087 Yes 1
14.241 Housing Opportunities for Persons with Aids $172,494 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $154,504 - 0
14.896 Family Self-Sufficiency Program $132,977 - 0
14.238 Shelter Plus Care $94,035 - 0

Contacts

Name Title Type
FULKBEHDD6L8 Ralph Staley Auditee
9196831551 Rich Larsen Auditor
No contacts on file

Notes to SEFA

Accounting Policies: BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the Authority under programs of the federal government for the year ended December 31, 2020. The information in the 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 operations of the Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of the Authority. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: INDIRECT COST RATE The Authority has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2020-002
Finding 2020-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs Federal Assistance Listing Numbers: 14.871 & 14.879 Material Noncompliance Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: The Authority must maintain complete and accurate accounts and other records for the program in accordance with HUD compliance requirements. Condition: The Authority did not maintain complete and accurate accounts and other records in accordance with HUD compliance requirements including Eligibility, Reporting, and Special Tests and Provisions including selection from the waiting list, housing quality standards inspections, HQS enforcement, and housing assistance payment. Context: The Authority was unable to provide requested documentation at the time of audit to properly test the HUD compliance requirements: Known Questioned Costs: Unknown Cause: There is a material weakness in internal controls over compliance for the compliance related to the maintenance of accounts and other records. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Housing Vouchers Cluster Programs are in non-compliance requirements of the program. Recommendation: We recommend that the Authority implement a process whereby Authority documents are stored and safeguarded to ensure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Housing Voucher Cluster Program and will implement internal control procedures that will ensure compliance with federal regulations. Completion date or proposed completion date: December 31, 2024
Finding 2020-002
Finding 2020-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs Federal Assistance Listing Numbers: 14.871 & 14.879 Material Noncompliance Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: The Authority must maintain complete and accurate accounts and other records for the program in accordance with HUD compliance requirements. Condition: The Authority did not maintain complete and accurate accounts and other records in accordance with HUD compliance requirements including Eligibility, Reporting, and Special Tests and Provisions including selection from the waiting list, housing quality standards inspections, HQS enforcement, and housing assistance payment. Context: The Authority was unable to provide requested documentation at the time of audit to properly test the HUD compliance requirements: Known Questioned Costs: Unknown Cause: There is a material weakness in internal controls over compliance for the compliance related to the maintenance of accounts and other records. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Housing Vouchers Cluster Programs are in non-compliance requirements of the program. Recommendation: We recommend that the Authority implement a process whereby Authority documents are stored and safeguarded to ensure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Housing Voucher Cluster Program and will implement internal control procedures that will ensure compliance with federal regulations. Completion date or proposed completion date: December 31, 2024
Finding 2020-003
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Federal Catalog Numbers: 14.850 Material Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Condition: Based upon inspection of the Authority’s files and on discussion with management there were a significant number of documents that were unavailable for examination at the time of audit. Context: Of a sample size of twenty-six (26) tenant files, the following information was unavailable for examination at the time of audit: Verification of income and assets was missing in four (4) files. Our sample size is statistically valid. Known Questioned Costs: $24,672 Cause: There is a material weakness in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Public and Indian Housing Program is in non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Public and Indian Housing Program and will implement internal control procedures that will ensure compliance with federal regulations. Completion date or proposed completion date: December 31, 2024
Finding 2020-002
Finding 2020-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs Federal Assistance Listing Numbers: 14.871 & 14.879 Material Noncompliance Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: The Authority must maintain complete and accurate accounts and other records for the program in accordance with HUD compliance requirements. Condition: The Authority did not maintain complete and accurate accounts and other records in accordance with HUD compliance requirements including Eligibility, Reporting, and Special Tests and Provisions including selection from the waiting list, housing quality standards inspections, HQS enforcement, and housing assistance payment. Context: The Authority was unable to provide requested documentation at the time of audit to properly test the HUD compliance requirements: Known Questioned Costs: Unknown Cause: There is a material weakness in internal controls over compliance for the compliance related to the maintenance of accounts and other records. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Housing Vouchers Cluster Programs are in non-compliance requirements of the program. Recommendation: We recommend that the Authority implement a process whereby Authority documents are stored and safeguarded to ensure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Housing Voucher Cluster Program and will implement internal control procedures that will ensure compliance with federal regulations. Completion date or proposed completion date: December 31, 2024
Finding 2020-002
Finding 2020-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs Federal Assistance Listing Numbers: 14.871 & 14.879 Material Noncompliance Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: The Authority must maintain complete and accurate accounts and other records for the program in accordance with HUD compliance requirements. Condition: The Authority did not maintain complete and accurate accounts and other records in accordance with HUD compliance requirements including Eligibility, Reporting, and Special Tests and Provisions including selection from the waiting list, housing quality standards inspections, HQS enforcement, and housing assistance payment. Context: The Authority was unable to provide requested documentation at the time of audit to properly test the HUD compliance requirements: Known Questioned Costs: Unknown Cause: There is a material weakness in internal controls over compliance for the compliance related to the maintenance of accounts and other records. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Housing Vouchers Cluster Programs are in non-compliance requirements of the program. Recommendation: We recommend that the Authority implement a process whereby Authority documents are stored and safeguarded to ensure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Housing Voucher Cluster Program and will implement internal control procedures that will ensure compliance with federal regulations. Completion date or proposed completion date: December 31, 2024
Finding 2020-003
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Federal Catalog Numbers: 14.850 Material Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Condition: Based upon inspection of the Authority’s files and on discussion with management there were a significant number of documents that were unavailable for examination at the time of audit. Context: Of a sample size of twenty-six (26) tenant files, the following information was unavailable for examination at the time of audit: Verification of income and assets was missing in four (4) files. Our sample size is statistically valid. Known Questioned Costs: $24,672 Cause: There is a material weakness in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Public and Indian Housing Program is in non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Public and Indian Housing Program and will implement internal control procedures that will ensure compliance with federal regulations. Completion date or proposed completion date: December 31, 2024