FAC Explorer

Audit 321393

FY End
2023-12-31
Total Expended
$11.73M
Findings
6
Programs
5
Organization: Topeka Housing Authority (KS)
Year: 2023 Accepted: 2024-09-26
Auditor: Aprio LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
498677 2023-001 Material Weakness - N
498678 2023-002 Material Weakness - B
498679 2023-002 Material Weakness - B
1075119 2023-001 Material Weakness - N
1075120 2023-002 Material Weakness - B
1075121 2023-002 Material Weakness - B

Programs

ALN Program Spent Major Findings
14.850 Public Housing Operating Fund $3.62M - 0
14.872 Public Housing Capital Fund $3.02M Yes 0
14.871 Section 8 Housing Choice Vouchers $643,646 Yes 1
14.879 Mainstream Vouchers $102,284 Yes 0
14.896 Family Self-Sufficiency Program $44,035 - 0

Contacts

Name Title Type
F8V5PEN89KK9 Dwayne Tucker Auditee
7853572645 Tom Carr Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% De Minimus Indirect Cost Rate allowed under the Uniform Guidance. The above Schedule of Expenditures of Federal Awards includes the federal award activity of the Authority under programs of the federal government for the year ended December 31, 2023. 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 for Federal Awards. Because the Schedule presents only a selected portion of operations of the Authority, it is not intended to and does not present the financial net position, changes in net position, or cash flows of the Authority.
Title: NOTE 3 – AWARDS PASSED-THROUGH TO SUBRECIPIENTS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% De Minimus Indirect Cost Rate allowed under the Uniform Guidance. No federal award funds were passed-through to subrecipient grantees during the year ended December 31, 2023.
Title: NOTE 4 – NON-MONETARY FEDERAL AWARDS ASSISTANCE Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% De Minimus Indirect Cost Rate allowed under the Uniform Guidance. The Authority did not receive or expend non-monetary federal awards assistance during the year ended December 31, 2023.

Finding Details

Finding 2023-001
Finding 2023-001 – Housing Quality Standards Inspections (Material Weakness, Non-Compliance) Section 8 Housing Choice Voucher Program (Housing Choice Voucher Cluster) – Assistance Listing No. 14.871; Grant Period: Year-End December 31, 2023 Criteria The Code of Federal Regulations and other HUD PIH Notices provide requirements and guidance for Housing Quality Standards (HQS) Inspections with respect to the Section 8 Housing Choice Voucher Program. Specifically, the Authority must inspect an assisted unit at least biennially to determine if the unit meets HQS and must conduct quality control re-inspections. Condition and Perspective During audit fieldwork, HQS inspections were reviewed for forty Section 8 Housing Choice Voucher Program-assisted units. It was noted that three of the forty units were not inspected during 2022 or 2023. Questioned Costs – None noted Cause Failure to execute monitoring controls over Program requirements. Effect Noncompliance with federal HQS requirements. Recommendation We recommend that the Authority perform inspections of assisted-units at least biennially. Management’s Response The Authority will perform inspections of assisted-units at least biennially. The identified units were not inspected due to a software anomaly. The applicable software provider has been contacted. The Authority’s Executive Director, Trey George, has assumed the responsibility of assuring timely HQS inspections and anticipates the applicable corrections by November 1, 2024.
Finding 2023-002
Unallowable Use of Housing Choice Voucher Cluster Programs’ Funds (Material Weakness, Material Non-Compliance) Section 8 Housing Choice Voucher Program (Housing Choice Voucher Cluster) – Assistance Listing No. 14.871, Emergency Housing Voucher Program (Housing Choice Voucher Cluster) – Assistance Listing No. 14.EHV, Grant Period: Year-End December 31, 2023 Criteria The cost principles in 2 CFR Part 200, Sub-part E of the Uniform Guidance describe allowable and unallowable uses of federal award program subsidies. Parts 200.403 and 200.405 prohibit the use of federal award program subsidies to fund expenditures outside of the applicable federal award program. Specifically, the Section 8 Housing Choice Voucher and Emergency Housing Voucher Programs’ subsidies and reserves cannot be used to fund expenditures and/or deficits of other federal or non-federal programs, except through allowable Management and Book-keeping Fees. Condition and Perspective During 2023, the Authority’s Section 8 Housing Choice Voucher Program advanced $255,941 out of its Program. The Emergency Housing Choice Voucher Program advanced $186,741 out of its Program. Questioned Costs – $255,941 and $186,741 from the Programs. Cause Lack of non-federal funds available to finance non-federal expenditures. Effect Non-compliance with federal Allowable Cost requirements. Recommendation We recommend that the Authority limit advancing funds from the Section 8 Housing Choice Voucher and Emergency Housing Voucher Programs, to allowable Fees only as specified in the Uniform Guidance and applicable HUD literature. Management’s Response The Authority will limit advancing funds from the Section 8 Housing Choice Voucher and Emergency Housing Voucher Programs, to allowable Fees only. The Authority’s Executive Director, Trey George, has assumed the responsibility of executing this corrective action as of November 1, 2024.
Finding 2023-002
Unallowable Use of Housing Choice Voucher Cluster Programs’ Funds (Material Weakness, Material Non-Compliance) Section 8 Housing Choice Voucher Program (Housing Choice Voucher Cluster) – Assistance Listing No. 14.871, Emergency Housing Voucher Program (Housing Choice Voucher Cluster) – Assistance Listing No. 14.EHV, Grant Period: Year-End December 31, 2023 Criteria The cost principles in 2 CFR Part 200, Sub-part E of the Uniform Guidance describe allowable and unallowable uses of federal award program subsidies. Parts 200.403 and 200.405 prohibit the use of federal award program subsidies to fund expenditures outside of the applicable federal award program. Specifically, the Section 8 Housing Choice Voucher and Emergency Housing Voucher Programs’ subsidies and reserves cannot be used to fund expenditures and/or deficits of other federal or non-federal programs, except through allowable Management and Book-keeping Fees. Condition and Perspective During 2023, the Authority’s Section 8 Housing Choice Voucher Program advanced $255,941 out of its Program. The Emergency Housing Choice Voucher Program advanced $186,741 out of its Program. Questioned Costs – $255,941 and $186,741 from the Programs. Cause Lack of non-federal funds available to finance non-federal expenditures. Effect Non-compliance with federal Allowable Cost requirements. Recommendation We recommend that the Authority limit advancing funds from the Section 8 Housing Choice Voucher and Emergency Housing Voucher Programs, to allowable Fees only as specified in the Uniform Guidance and applicable HUD literature. Management’s Response The Authority will limit advancing funds from the Section 8 Housing Choice Voucher and Emergency Housing Voucher Programs, to allowable Fees only. The Authority’s Executive Director, Trey George, has assumed the responsibility of executing this corrective action as of November 1, 2024.
Finding 2023-001
Finding 2023-001 – Housing Quality Standards Inspections (Material Weakness, Non-Compliance) Section 8 Housing Choice Voucher Program (Housing Choice Voucher Cluster) – Assistance Listing No. 14.871; Grant Period: Year-End December 31, 2023 Criteria The Code of Federal Regulations and other HUD PIH Notices provide requirements and guidance for Housing Quality Standards (HQS) Inspections with respect to the Section 8 Housing Choice Voucher Program. Specifically, the Authority must inspect an assisted unit at least biennially to determine if the unit meets HQS and must conduct quality control re-inspections. Condition and Perspective During audit fieldwork, HQS inspections were reviewed for forty Section 8 Housing Choice Voucher Program-assisted units. It was noted that three of the forty units were not inspected during 2022 or 2023. Questioned Costs – None noted Cause Failure to execute monitoring controls over Program requirements. Effect Noncompliance with federal HQS requirements. Recommendation We recommend that the Authority perform inspections of assisted-units at least biennially. Management’s Response The Authority will perform inspections of assisted-units at least biennially. The identified units were not inspected due to a software anomaly. The applicable software provider has been contacted. The Authority’s Executive Director, Trey George, has assumed the responsibility of assuring timely HQS inspections and anticipates the applicable corrections by November 1, 2024.
Finding 2023-002
Unallowable Use of Housing Choice Voucher Cluster Programs’ Funds (Material Weakness, Material Non-Compliance) Section 8 Housing Choice Voucher Program (Housing Choice Voucher Cluster) – Assistance Listing No. 14.871, Emergency Housing Voucher Program (Housing Choice Voucher Cluster) – Assistance Listing No. 14.EHV, Grant Period: Year-End December 31, 2023 Criteria The cost principles in 2 CFR Part 200, Sub-part E of the Uniform Guidance describe allowable and unallowable uses of federal award program subsidies. Parts 200.403 and 200.405 prohibit the use of federal award program subsidies to fund expenditures outside of the applicable federal award program. Specifically, the Section 8 Housing Choice Voucher and Emergency Housing Voucher Programs’ subsidies and reserves cannot be used to fund expenditures and/or deficits of other federal or non-federal programs, except through allowable Management and Book-keeping Fees. Condition and Perspective During 2023, the Authority’s Section 8 Housing Choice Voucher Program advanced $255,941 out of its Program. The Emergency Housing Choice Voucher Program advanced $186,741 out of its Program. Questioned Costs – $255,941 and $186,741 from the Programs. Cause Lack of non-federal funds available to finance non-federal expenditures. Effect Non-compliance with federal Allowable Cost requirements. Recommendation We recommend that the Authority limit advancing funds from the Section 8 Housing Choice Voucher and Emergency Housing Voucher Programs, to allowable Fees only as specified in the Uniform Guidance and applicable HUD literature. Management’s Response The Authority will limit advancing funds from the Section 8 Housing Choice Voucher and Emergency Housing Voucher Programs, to allowable Fees only. The Authority’s Executive Director, Trey George, has assumed the responsibility of executing this corrective action as of November 1, 2024.
Finding 2023-002
Unallowable Use of Housing Choice Voucher Cluster Programs’ Funds (Material Weakness, Material Non-Compliance) Section 8 Housing Choice Voucher Program (Housing Choice Voucher Cluster) – Assistance Listing No. 14.871, Emergency Housing Voucher Program (Housing Choice Voucher Cluster) – Assistance Listing No. 14.EHV, Grant Period: Year-End December 31, 2023 Criteria The cost principles in 2 CFR Part 200, Sub-part E of the Uniform Guidance describe allowable and unallowable uses of federal award program subsidies. Parts 200.403 and 200.405 prohibit the use of federal award program subsidies to fund expenditures outside of the applicable federal award program. Specifically, the Section 8 Housing Choice Voucher and Emergency Housing Voucher Programs’ subsidies and reserves cannot be used to fund expenditures and/or deficits of other federal or non-federal programs, except through allowable Management and Book-keeping Fees. Condition and Perspective During 2023, the Authority’s Section 8 Housing Choice Voucher Program advanced $255,941 out of its Program. The Emergency Housing Choice Voucher Program advanced $186,741 out of its Program. Questioned Costs – $255,941 and $186,741 from the Programs. Cause Lack of non-federal funds available to finance non-federal expenditures. Effect Non-compliance with federal Allowable Cost requirements. Recommendation We recommend that the Authority limit advancing funds from the Section 8 Housing Choice Voucher and Emergency Housing Voucher Programs, to allowable Fees only as specified in the Uniform Guidance and applicable HUD literature. Management’s Response The Authority will limit advancing funds from the Section 8 Housing Choice Voucher and Emergency Housing Voucher Programs, to allowable Fees only. The Authority’s Executive Director, Trey George, has assumed the responsibility of executing this corrective action as of November 1, 2024.