FAC Explorer

Audit 322442

FY End
2023-12-31
Total Expended
$5.60M
Findings
2
Programs
4
Organization: Housing Authority of the Town of Vernon (CT)
Year: 2023 Accepted: 2024-09-30
Auditor: Marcum LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
499582 2023-002 Significant Deficiency - E
1076024 2023-002 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $3.75M Yes 1
14.872 Public Housing Capital Fund $1.17M Yes 0
14.850 Public Housing Operating Fund $675,879 - 0
14.888 Lead-Based Paint Capital Fund Program $2,540 - 0

Contacts

Name Title Type
DR9GP6CWNC44 Thomas Cochran Auditee
8608710886 Michael Guyder Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – BASIS OF PRESENTATION Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Vernon Housing Authority, 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 Vernon Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Vernon Housing Authority. 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 Vernon Housing Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Vernon Housing Authority, 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 Vernon Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Vernon Housing Authority.
Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Vernon Housing Authority, 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 Vernon Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Vernon Housing Authority. 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 Vernon Housing Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. 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.
Title: NOTE 3 – INDIRECT COST RATE Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Vernon Housing Authority, 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 Vernon Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Vernon Housing Authority. 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 Vernon Housing Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Vernon Housing Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-002
2023-002 – ELIGIBILITY – ELIGIBILITY FOR INDIVIDUALS Other Matter/Significant Deficiency U.S. Department of Housing and Urban Development ALN 14.871 – Section 8 Housing Choice Vouchers CRITERIA The PHA must conduct a reexamination of family income and composition at least annually. (2) Except as provided in paragraph (a)(3) of this section, the PHA must obtain and document in the tenant file third-party verification of the following factors, or must document in the tenant file why third-party verification was not available: (i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income. (2 CFR 982.516 (a)) (1) As a condition of admission to or continued assistance under the program, the PHA shall require the family head, and such other family members as the PHA designates, to execute a HUD-approved release and consent form (2 CFR 982.516(g)) CONDITION As a result of our testing, we identified the following: • Two instances of incorrect or incomplete verifications of income, assets, or deductions. • Two instances of incorrect payment standards used. • Two instances of utility allowance miscalculations. • One certification that was not completed timely. CAUSE The Authority's system of obtaining and documenting third-party verifications of tenant’s income, assets, or deductions was not sufficient. EFFECT The Authority did obtain proper verification and calculation of income, expenses, and deductions are used in calculating annual income, adjusted income, and thereby housing assistance payments. QUESTIONED COSTS None Noted. CONTEXT The Authority leased approximately 320 vouchers through the Housing Choice Voucher Program throughout the year. We selected a sample of 25 participant files. This was not a statistically valid sample. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend policies and procedures are strengthened to ensure all proper documentation and annual recertification are maintained in all tenant files to document eligibility. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan. SECTION IV – SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS No prior audit findings.
Finding 2023-002
2023-002 – ELIGIBILITY – ELIGIBILITY FOR INDIVIDUALS Other Matter/Significant Deficiency U.S. Department of Housing and Urban Development ALN 14.871 – Section 8 Housing Choice Vouchers CRITERIA The PHA must conduct a reexamination of family income and composition at least annually. (2) Except as provided in paragraph (a)(3) of this section, the PHA must obtain and document in the tenant file third-party verification of the following factors, or must document in the tenant file why third-party verification was not available: (i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income. (2 CFR 982.516 (a)) (1) As a condition of admission to or continued assistance under the program, the PHA shall require the family head, and such other family members as the PHA designates, to execute a HUD-approved release and consent form (2 CFR 982.516(g)) CONDITION As a result of our testing, we identified the following: • Two instances of incorrect or incomplete verifications of income, assets, or deductions. • Two instances of incorrect payment standards used. • Two instances of utility allowance miscalculations. • One certification that was not completed timely. CAUSE The Authority's system of obtaining and documenting third-party verifications of tenant’s income, assets, or deductions was not sufficient. EFFECT The Authority did obtain proper verification and calculation of income, expenses, and deductions are used in calculating annual income, adjusted income, and thereby housing assistance payments. QUESTIONED COSTS None Noted. CONTEXT The Authority leased approximately 320 vouchers through the Housing Choice Voucher Program throughout the year. We selected a sample of 25 participant files. This was not a statistically valid sample. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend policies and procedures are strengthened to ensure all proper documentation and annual recertification are maintained in all tenant files to document eligibility. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan. SECTION IV – SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS No prior audit findings.