FAC Explorer

Audit 321386

FY End
2023-12-31
Total Expended
$44.53M
Findings
6
Programs
6
Organization: Pinellas County Housing Authority (FL)
Year: 2023 Accepted: 2024-09-26
Auditor: Berman Hopkins Wright & Laham CPAS and Associates LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
498669 2023-001 Significant Deficiency - A
498670 2023-001 Significant Deficiency - A
498671 2023-001 Significant Deficiency - A
1075111 2023-001 Significant Deficiency - A
1075112 2023-001 Significant Deficiency - A
1075113 2023-001 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $1.62M Yes 1
14.850 Public Housing Operating Fund $1.18M - 0
14.879 Mainstream Vouchers $1.01M Yes 1
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $494,227 - 0
14.872 Public Housing Capital Fund $265,073 - 0
14.896 Family Self-Sufficiency Program $122,000 - 0

Contacts

Name Title Type
FWEFFEKDC7D3 Neil Thompson Auditee
7274437684 Laura Anne Pray Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 Accounting Policies: The above schedule of expenditures of federal awards includes the federal grant activity of the Authority and is presented on the accrual basis of accounting. The information on this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements. 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 did not elect to use the 10-percent de minimis indirect cost rate. The above schedule of expenditures of federal awards includes the federal grant activity of the Authority and is presented on the accrual basis of accounting. The information on this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: NOTE 2 Accounting Policies: The above schedule of expenditures of federal awards includes the federal grant activity of the Authority and is presented on the accrual basis of accounting. The information on this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements. 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 did not elect to use the 10-percent de minimis indirect cost rate. In accordance with HUD regulations, HUD considers the Annual Budget Authority for the Housing Choice Voucher Program, AL No. 14.871, to be considered an expenditure for the purposes of this schedule. Therefore, the amount in this schedule is the total amount received directly from HUD.
Title: NOTE 3 Accounting Policies: The above schedule of expenditures of federal awards includes the federal grant activity of the Authority and is presented on the accrual basis of accounting. The information on this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements. 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 did not elect to use the 10-percent de minimis indirect cost rate. The Authority did not elect to use the 10-percent de minimis indirect cost rate.
Title: NOTE 4 Accounting Policies: The above schedule of expenditures of federal awards includes the federal grant activity of the Authority and is presented on the accrual basis of accounting. The information on this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements. 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 did not elect to use the 10-percent de minimis indirect cost rate. During the year ended December 31, 2023, the Authority had no sub-recipients.
Title: NOTE 5 Accounting Policies: The above schedule of expenditures of federal awards includes the federal grant activity of the Authority and is presented on the accrual basis of accounting. The information on this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements. 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 did not elect to use the 10-percent de minimis indirect cost rate. During the year ended December 31, 2023, the Authority did not receive any noncash assistance, federal loans, or federally funded insurance.

Finding Details

Finding 2023-001
Allowability - Landlord Overpayments Housing Voucher Cluster Significant Deficiency in Internal Control Other Matter to be Reported Under the Uniform Guidance Condition: The Authority made numerous overpayments in HAP to landlords starting in the month of October 2023. A variance in HAP disbursements was noted by the Department of Housing and Urban Development (HUD), and upon further investigation by management it was determined that the overpayment to landlords was not caught by staff when the original disbursements were made. Criteria: HUD enters into Annual Contributions Contracts (ACCs) with PHAs under which HUD provides funds to the PHAs to administer the HCV program locally. HUD provides funds for the payments to landlords based on the Authority’s 50058 calculation. Amounts paid to landlord should be based on those calculations. Context: The Authority notified the auditor at the beginning of the audit when management became aware of the overpayment issue. Effect: The Authority is not in compliance with applicable regulations regarding allowable use of HAP funds. Cause: The Authority underwent a software conversion during the year which caused issues with the landlord payment module for HCV. There was inadequate review performed on the process and controls over the posting of HAP payments to landlords within the new system that allowed for the error to continue until April 2024. Questioned Costs: $242,129, during fiscal year. Auditor Recommendations: The Authority should work on recapturing overpaid funds from landlords that have current tenant agreements. The Authority should also monitor internal controls in place with the new software to make sure the accounting software is functioning properly. Management Response: See Corrective Action Plan.
Finding 2023-001
Allowability - Landlord Overpayments Housing Voucher Cluster Significant Deficiency in Internal Control Other Matter to be Reported Under the Uniform Guidance Condition: The Authority made numerous overpayments in HAP to landlords starting in the month of October 2023. A variance in HAP disbursements was noted by the Department of Housing and Urban Development (HUD), and upon further investigation by management it was determined that the overpayment to landlords was not caught by staff when the original disbursements were made. Criteria: HUD enters into Annual Contributions Contracts (ACCs) with PHAs under which HUD provides funds to the PHAs to administer the HCV program locally. HUD provides funds for the payments to landlords based on the Authority’s 50058 calculation. Amounts paid to landlord should be based on those calculations. Context: The Authority notified the auditor at the beginning of the audit when management became aware of the overpayment issue. Effect: The Authority is not in compliance with applicable regulations regarding allowable use of HAP funds. Cause: The Authority underwent a software conversion during the year which caused issues with the landlord payment module for HCV. There was inadequate review performed on the process and controls over the posting of HAP payments to landlords within the new system that allowed for the error to continue until April 2024. Questioned Costs: $242,129, during fiscal year. Auditor Recommendations: The Authority should work on recapturing overpaid funds from landlords that have current tenant agreements. The Authority should also monitor internal controls in place with the new software to make sure the accounting software is functioning properly. Management Response: See Corrective Action Plan.
Finding 2023-001
Allowability - Landlord Overpayments Housing Voucher Cluster Significant Deficiency in Internal Control Other Matter to be Reported Under the Uniform Guidance Condition: The Authority made numerous overpayments in HAP to landlords starting in the month of October 2023. A variance in HAP disbursements was noted by the Department of Housing and Urban Development (HUD), and upon further investigation by management it was determined that the overpayment to landlords was not caught by staff when the original disbursements were made. Criteria: HUD enters into Annual Contributions Contracts (ACCs) with PHAs under which HUD provides funds to the PHAs to administer the HCV program locally. HUD provides funds for the payments to landlords based on the Authority’s 50058 calculation. Amounts paid to landlord should be based on those calculations. Context: The Authority notified the auditor at the beginning of the audit when management became aware of the overpayment issue. Effect: The Authority is not in compliance with applicable regulations regarding allowable use of HAP funds. Cause: The Authority underwent a software conversion during the year which caused issues with the landlord payment module for HCV. There was inadequate review performed on the process and controls over the posting of HAP payments to landlords within the new system that allowed for the error to continue until April 2024. Questioned Costs: $242,129, during fiscal year. Auditor Recommendations: The Authority should work on recapturing overpaid funds from landlords that have current tenant agreements. The Authority should also monitor internal controls in place with the new software to make sure the accounting software is functioning properly. Management Response: See Corrective Action Plan.
Finding 2023-001
Allowability - Landlord Overpayments Housing Voucher Cluster Significant Deficiency in Internal Control Other Matter to be Reported Under the Uniform Guidance Condition: The Authority made numerous overpayments in HAP to landlords starting in the month of October 2023. A variance in HAP disbursements was noted by the Department of Housing and Urban Development (HUD), and upon further investigation by management it was determined that the overpayment to landlords was not caught by staff when the original disbursements were made. Criteria: HUD enters into Annual Contributions Contracts (ACCs) with PHAs under which HUD provides funds to the PHAs to administer the HCV program locally. HUD provides funds for the payments to landlords based on the Authority’s 50058 calculation. Amounts paid to landlord should be based on those calculations. Context: The Authority notified the auditor at the beginning of the audit when management became aware of the overpayment issue. Effect: The Authority is not in compliance with applicable regulations regarding allowable use of HAP funds. Cause: The Authority underwent a software conversion during the year which caused issues with the landlord payment module for HCV. There was inadequate review performed on the process and controls over the posting of HAP payments to landlords within the new system that allowed for the error to continue until April 2024. Questioned Costs: $242,129, during fiscal year. Auditor Recommendations: The Authority should work on recapturing overpaid funds from landlords that have current tenant agreements. The Authority should also monitor internal controls in place with the new software to make sure the accounting software is functioning properly. Management Response: See Corrective Action Plan.
Finding 2023-001
Allowability - Landlord Overpayments Housing Voucher Cluster Significant Deficiency in Internal Control Other Matter to be Reported Under the Uniform Guidance Condition: The Authority made numerous overpayments in HAP to landlords starting in the month of October 2023. A variance in HAP disbursements was noted by the Department of Housing and Urban Development (HUD), and upon further investigation by management it was determined that the overpayment to landlords was not caught by staff when the original disbursements were made. Criteria: HUD enters into Annual Contributions Contracts (ACCs) with PHAs under which HUD provides funds to the PHAs to administer the HCV program locally. HUD provides funds for the payments to landlords based on the Authority’s 50058 calculation. Amounts paid to landlord should be based on those calculations. Context: The Authority notified the auditor at the beginning of the audit when management became aware of the overpayment issue. Effect: The Authority is not in compliance with applicable regulations regarding allowable use of HAP funds. Cause: The Authority underwent a software conversion during the year which caused issues with the landlord payment module for HCV. There was inadequate review performed on the process and controls over the posting of HAP payments to landlords within the new system that allowed for the error to continue until April 2024. Questioned Costs: $242,129, during fiscal year. Auditor Recommendations: The Authority should work on recapturing overpaid funds from landlords that have current tenant agreements. The Authority should also monitor internal controls in place with the new software to make sure the accounting software is functioning properly. Management Response: See Corrective Action Plan.
Finding 2023-001
Allowability - Landlord Overpayments Housing Voucher Cluster Significant Deficiency in Internal Control Other Matter to be Reported Under the Uniform Guidance Condition: The Authority made numerous overpayments in HAP to landlords starting in the month of October 2023. A variance in HAP disbursements was noted by the Department of Housing and Urban Development (HUD), and upon further investigation by management it was determined that the overpayment to landlords was not caught by staff when the original disbursements were made. Criteria: HUD enters into Annual Contributions Contracts (ACCs) with PHAs under which HUD provides funds to the PHAs to administer the HCV program locally. HUD provides funds for the payments to landlords based on the Authority’s 50058 calculation. Amounts paid to landlord should be based on those calculations. Context: The Authority notified the auditor at the beginning of the audit when management became aware of the overpayment issue. Effect: The Authority is not in compliance with applicable regulations regarding allowable use of HAP funds. Cause: The Authority underwent a software conversion during the year which caused issues with the landlord payment module for HCV. There was inadequate review performed on the process and controls over the posting of HAP payments to landlords within the new system that allowed for the error to continue until April 2024. Questioned Costs: $242,129, during fiscal year. Auditor Recommendations: The Authority should work on recapturing overpaid funds from landlords that have current tenant agreements. The Authority should also monitor internal controls in place with the new software to make sure the accounting software is functioning properly. Management Response: See Corrective Action Plan.