FAC Explorer

Audit 319635

FY End
2023-06-30
Total Expended
$13.47M
Findings
4
Programs
7
Organization: Cumberland County Housing Authority (PA)
Year: 2023 Accepted: 2024-09-16
Auditor: Smco

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
496891 2023-003 Significant Deficiency - N
496892 2023-002 Significant Deficiency - N
1073333 2023-003 Significant Deficiency - N
1073334 2023-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $8.48M Yes 2
21.023 Emergency Rental Assistance Program $1.92M - 0
14.872 Public Housing Capital Fund $1.14M Yes 0
14.267 Continuum of Care Program $829,005 Yes 0
14.850 Public and Indian Housing $654,909 - 0
14.238 Shelter Plus Care $440,240 - 0
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $6,281 - 0

Contacts

Name Title Type
L4MAGUSXFWD1 Kira Kessler Auditee
7172490789 Chad Porter Auditor
No contacts on file

Notes to SEFA

Title: Scope of Presentation Accounting Policies: Scope of Presentation The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of the County of Cumberland (Authority) that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal or state reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. Basis of Accounting The expenditures included in the accompanying schedule were reported on the accrual basis of accounting. Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The information in this schedule is presented in accordance with the requirements of Uniform Guidance, Audit of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements De Minimis Rate Used: N Rate Explanation: The Authority elected not to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414. The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of the County of Cumberland (Authority) that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal or state reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule.
Title: Basis of Accounting Accounting Policies: Scope of Presentation The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of the County of Cumberland (Authority) that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal or state reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. Basis of Accounting The expenditures included in the accompanying schedule were reported on the accrual basis of accounting. Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The information in this schedule is presented in accordance with the requirements of Uniform Guidance, Audit of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements De Minimis Rate Used: N Rate Explanation: The Authority elected not to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414. The expenditures included in the accompanying schedule were reported on the accrual basis of accounting. Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The information in this schedule is presented in accordance with the requirements of Uniform Guidance, Audit of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Title: Subrecipients Accounting Policies: Scope of Presentation The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of the County of Cumberland (Authority) that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal or state reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. Basis of Accounting The expenditures included in the accompanying schedule were reported on the accrual basis of accounting. Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The information in this schedule is presented in accordance with the requirements of Uniform Guidance, Audit of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements De Minimis Rate Used: N Rate Explanation: The Authority elected not to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414. During the fiscal year ended June 30, 2023, Housing Authority of the County of Cumberland disbursed no Federal funds to subrecipients.
Title: Indirect Cost Rate Accounting Policies: Scope of Presentation The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of the County of Cumberland (Authority) that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal or state reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. Basis of Accounting The expenditures included in the accompanying schedule were reported on the accrual basis of accounting. Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The information in this schedule is presented in accordance with the requirements of Uniform Guidance, Audit of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements De Minimis Rate Used: N Rate Explanation: The Authority elected not to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414. The Authority elected not to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414.

Finding Details

Finding 2023-003
The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re‐inspections. The PHA must prepare a unit inspection report (24 CFR §§982.405, 983.103)). Additionally, for units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA‐approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family‐caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). During our audit, we identified four (4) failed HQS that did not receive a pass for several months and no rent abetment process was started or enforced during that time period. The HQS population was 135 failed inspection. We selected a sample of 29 inspection and identified of those 29 reviewed 4 did not obtain a re-inspection pass within the Criteria noted above and no rent abetment process was enforce on landlord. The Authority staff did not want to jeopardize the tenants lease by enforcing the rent abatements and rather worked with the landlord over an extend period to resolve the failed inspection issues. The Authority is non‐compliant with the federal regulations over this federal program, this could potentially result in operating and financial penalties. We suggest the Authority properly oversee compliance with regulations and enforce rent abatements if necessary to adherence to federal compliance requirements. Management agrees with the finding, see Management's corrective action plan.
Finding 2023-002
Reporting None Financial Data Schedule (FDS) submission for unaudited financials are due within 2 months after the fiscal year end; FDS audited submissions are due 9 months after fiscal year end; and the Federal Audit Clearing House reporting package is due 30 days after receipt of the auditors reports or 9 months after the end of the fiscal year end (24 CFR section 5.801). Management missed deadlines for the audited submissions and missed the deadline for completing it Federal Audit Clearing House reporting package. Significant delay in the audit process resulted from these journal entries identified in finding 2023-001. Management was late in submitting its financial information to the auditor. This in part was caused by personnel changes that limited its ability to produce timely and reliable financial data. The Authority will receive a lower SEMAP score and will be classified as a troubled housing authority which could impact its subsidies. The Authority needs to improve its internal controls over financial reporting by submitting its financial data on a timelier basis. We agree with this finding and have outlined our plan of action in management's corrective action plan.
Finding 2023-003
The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re‐inspections. The PHA must prepare a unit inspection report (24 CFR §§982.405, 983.103)). Additionally, for units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA‐approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family‐caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). During our audit, we identified four (4) failed HQS that did not receive a pass for several months and no rent abetment process was started or enforced during that time period. The HQS population was 135 failed inspection. We selected a sample of 29 inspection and identified of those 29 reviewed 4 did not obtain a re-inspection pass within the Criteria noted above and no rent abetment process was enforce on landlord. The Authority staff did not want to jeopardize the tenants lease by enforcing the rent abatements and rather worked with the landlord over an extend period to resolve the failed inspection issues. The Authority is non‐compliant with the federal regulations over this federal program, this could potentially result in operating and financial penalties. We suggest the Authority properly oversee compliance with regulations and enforce rent abatements if necessary to adherence to federal compliance requirements. Management agrees with the finding, see Management's corrective action plan.
Finding 2023-002
Reporting None Financial Data Schedule (FDS) submission for unaudited financials are due within 2 months after the fiscal year end; FDS audited submissions are due 9 months after fiscal year end; and the Federal Audit Clearing House reporting package is due 30 days after receipt of the auditors reports or 9 months after the end of the fiscal year end (24 CFR section 5.801). Management missed deadlines for the audited submissions and missed the deadline for completing it Federal Audit Clearing House reporting package. Significant delay in the audit process resulted from these journal entries identified in finding 2023-001. Management was late in submitting its financial information to the auditor. This in part was caused by personnel changes that limited its ability to produce timely and reliable financial data. The Authority will receive a lower SEMAP score and will be classified as a troubled housing authority which could impact its subsidies. The Authority needs to improve its internal controls over financial reporting by submitting its financial data on a timelier basis. We agree with this finding and have outlined our plan of action in management's corrective action plan.