Audit 320625

FY End

2023-12-31

Total Expended

$15.22M

Findings

4

Programs

5

Organization: Housing Authority of the City of New Britain (CT)

Year: 2023 Accepted: 2024-09-24

Auditor: Marcum LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
497965	2023-002	Material Weakness	Yes	N
497966	2023-003	Significant Deficiency	Yes	I
1074407	2023-002	Material Weakness	Yes	N
1074408	2023-003	Significant Deficiency	Yes	I

ALN	Program	Spent	Major	Findings
14.871	Section 8 Housing Choice Vouchers	$8.77M	Yes	1
14.850	Public Housing Operating Fund	$4.41M	Yes	1
14.872	Public Housing Capital Fund	$1.82M	-	0
14.896	Family Self-Sufficiency Program	$153,531	-	0
14.870	Resident Opportunity and Supportive Services - Service Coordinators	$70,687	-	0

Contacts

Name	Title	Type
NLQ2DDM9X168	John Hamilton	Auditee
8602253534	Michael Guyder	Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Housing Authority of the City of New Britain, under programs of the federal government for the year ended December 31, 2023. 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 Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Housing Authority of the City of New Britain, it is not intended to and does not present the financial position, changes in net position or cash flows of Housing Authority of the City of New Britain. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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. For performance-based awards, expenditures reported represent amounts earned. De Minimis Rate Used: N Rate Explanation: The Housing Authority of the City of New Britain has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-002

2023-002 – SPECIAL TESTS AND PROVISIONS – HQS ENFORCEMENT Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.871 – Housing Voucher Cluster CRITERIA The PHA must not make any housing assistance payments for a dwelling unit that fails to meet the HQS, unless the owner corrects the defect within the period specified by the PHA and the PHA verifies the correction. If a defect is life threatening, the owner must correct the defect within no more than 24 hours. For other defects, the owner must correct the defect within no more than 30 calendar days (or any PHA-approved extension). (24 CFR 982.404 (3)) CONDITION Reinspection, follow up and/or abatement documentation was missing for 5 out of 25 initial failed inspections. CAUSE Procedures were not in place to properly document the corrections of deficiencies and abate the housing assistance payments when necessary. EFFECT The Authority may have made housing assistance payments to landlords for units that failed to meet housing quality standards. QUESTIONED COSTS None identified. CONTEXT There were 180 failed HQS inspections for the Housing Choice Voucher Program during 2023. We selected a sample of 25 failed HQS inspections. This was not a statistically valid sample. REPEAT FINDING Repeated from Finding 2022-002. RECOMMENDATION We recommend that procedures be strengthened to ensure that documentation is maintained for all inspections and enforcements. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.

Finding 2023-003

2023-003 – PROCUREMENT, SUSPENSION, AND DEBARMENT Significant Deficiency / Other Matter U.S. Department of Housing and Urban Development CFDA #: 14.850 – Public and Indian Housing Program CRITERIA For any amounts above the Petty Cash ceiling, but not exceeding $250,000 in accordance with revisions to 2CFR 200.67 and 2 CFR 200.88, the NBHA may use small purchase procedures. Under small purchase procedures, the NBHA shall obtain a reasonable number of quotes (preferably three); however, for purchases of less than $10,000, per NDAA Section 806 also known as Micro Purchases, only one quote is required provided the quote is reasonable. CONDITION We identified 3 instances in which sufficient documentation was not maintained to support the procurement of a vendor. CAUSE The Authority was in the process of implementing their corrective action plan from the prior year. EFFECT The Authority has not ensured that it is receiving the most competitive prices or rates for services that have been procured, which may have resulted in unnecessary additional costs to the Authority. QUESTIONED COSTS Known Questioned Costs - $115,135, representing the aggregate payments to these four vendors. CONTEXT All purchases are required to be made in accordance with the Authority’s procurement policy. There were approximately 60 vendors paid in excess of the micro purchase threshold. We selected a sample of 11 vendors. This was not a statistically valid sample. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority continue with their corrective action plan from the prior year. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.

Finding 2023-002

2023-002 – SPECIAL TESTS AND PROVISIONS – HQS ENFORCEMENT Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.871 – Housing Voucher Cluster CRITERIA The PHA must not make any housing assistance payments for a dwelling unit that fails to meet the HQS, unless the owner corrects the defect within the period specified by the PHA and the PHA verifies the correction. If a defect is life threatening, the owner must correct the defect within no more than 24 hours. For other defects, the owner must correct the defect within no more than 30 calendar days (or any PHA-approved extension). (24 CFR 982.404 (3)) CONDITION Reinspection, follow up and/or abatement documentation was missing for 5 out of 25 initial failed inspections. CAUSE Procedures were not in place to properly document the corrections of deficiencies and abate the housing assistance payments when necessary. EFFECT The Authority may have made housing assistance payments to landlords for units that failed to meet housing quality standards. QUESTIONED COSTS None identified. CONTEXT There were 180 failed HQS inspections for the Housing Choice Voucher Program during 2023. We selected a sample of 25 failed HQS inspections. This was not a statistically valid sample. REPEAT FINDING Repeated from Finding 2022-002. RECOMMENDATION We recommend that procedures be strengthened to ensure that documentation is maintained for all inspections and enforcements. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.

Finding 2023-003

2023-003 – PROCUREMENT, SUSPENSION, AND DEBARMENT Significant Deficiency / Other Matter U.S. Department of Housing and Urban Development CFDA #: 14.850 – Public and Indian Housing Program CRITERIA For any amounts above the Petty Cash ceiling, but not exceeding $250,000 in accordance with revisions to 2CFR 200.67 and 2 CFR 200.88, the NBHA may use small purchase procedures. Under small purchase procedures, the NBHA shall obtain a reasonable number of quotes (preferably three); however, for purchases of less than $10,000, per NDAA Section 806 also known as Micro Purchases, only one quote is required provided the quote is reasonable. CONDITION We identified 3 instances in which sufficient documentation was not maintained to support the procurement of a vendor. CAUSE The Authority was in the process of implementing their corrective action plan from the prior year. EFFECT The Authority has not ensured that it is receiving the most competitive prices or rates for services that have been procured, which may have resulted in unnecessary additional costs to the Authority. QUESTIONED COSTS Known Questioned Costs - $115,135, representing the aggregate payments to these four vendors. CONTEXT All purchases are required to be made in accordance with the Authority’s procurement policy. There were approximately 60 vendors paid in excess of the micro purchase threshold. We selected a sample of 11 vendors. This was not a statistically valid sample. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority continue with their corrective action plan from the prior year. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.