Audit 32443

FY End
2022-03-31
Total Expended
$10.10M
Findings
14
Programs
6
Year: 2022 Accepted: 2022-11-30

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
34093 2022-006 - - P
34094 2022-007 - - P
34095 2022-001 - Yes P
34096 2022-002 - Yes P
34097 2022-003 - Yes P
34098 2022-004 - - P
34099 2022-005 - - P
610535 2022-006 - - P
610536 2022-007 - - P
610537 2022-001 - Yes P
610538 2022-002 - Yes P
610539 2022-003 - Yes P
610540 2022-004 - - P
610541 2022-005 - - P

Contacts

Name Title Type
KNQRZLMV4YY1 Adrian Lowery Auditee
9106718200 Laura Bailey Auditor
No contacts on file

Notes to SEFA

Title: Note D - Loans Outstanding Accounting Policies: Note A Basis of Presentation:The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awardactivity of the organization under programs of the federal government for the year ended March 31, 2022.The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code ofFederal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selectedportion of the operations of the organization, it is not intended to and does not present the financialposition, changes in net assets, or cash flows of the organization.Note B Summary of Significant Accounting Policies:Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in the Uniform Guidance and/or OMB Circular A-122, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are notallowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Authority has no loans outstanding with compliance requirements at year end.

Finding Details

2022-006: Statement of Condition ? For the Housing Choice Voucher Program, we reviewed 40 files (recertification files and new files) for fiscal year ended March 31, 2022. We reviewed 5 files for tenants who moved out during the fiscal year ended March 31, 2022. We noted 3 instances in which social security benefits were improperly calculated in determining annual family income. Criteria ? Per the Housing Choice Voucher Guidebook (Reexaminations - Section 2.1), ?Fixed income ? mean(s) periodic payments at reasonably predictable levels from one or more of the following sources (including) Social Security, Supplemental Security Income, Supplemental Disability Insurance.? Effect ? For the files referenced above, the following total family income calculation errors were noted: 1) periodic social security benefits were not included, 2) annualized benefits were entered incorrectly in the calculation, and 3) one-time death benefit payment was annualized and included in income. The net effect of these errors was to understate family rent payment by $134 per month. Cause ? Incorrect procedures were followed in regards to calculating social security benefits for inclusion in total family payments. Recommendation ? Procedures surrounding tenant rent calculation processes should be strengthened.
2022-007: Statement of Condition ? For the Housing Choice Voucher Program, we reviewed 40 files (recertification files and new files) for fiscal year ended March 31, 2022. We reviewed 5 files for tenants who moved out during the fiscal year ended March 31, 2022. In 4 instances, we noted that outdated information was used to calculate annual family income. Criteria ? Per the Housing Choice Voucher Guidebook (Reexaminations - Section 2.1), ?When completing a reexamination, PHAs must obtain and document ? third-party verification of ? changes in income, assets, deductions, expenses...? Effect ? For the instances noted above, the Authority is working with the families to obtain updated information to determine if adjustments should have been made in the income calculations. At this time, it is unknown if adjustments to income are necessary. Cause ? Incorrect procedures were followed in regards to family income calculations. Recommendation ? Procedures surrounding family income recertification processes should be strengthened.
Statement of Condition ? For the Low Rent Public Housing, we reviewed 40 tenant files (recertification files and new tenant files) for fiscal year ended March 31, 2022. We reviewed 5 files for tenants who moved out during the fiscal year ended March 31, 2022. The selected files represented a sample of all files in the three AMPS. We noted 4 instances in which the EIV indicated wages for household members. There was no follow up documentation in the files indicating that these wages should or should not be included in the household income calculation. Criteria ? Per the Public Housing Occupancy Guidebook (Section 8.4.5), ?When a source of income appears in EIV that the family did not report, the Authority must investigate to determine if the family is currently receiving income from that source.? Effect ? For the instances noted above, the Authority is working with the families to determine if additional wages should be included in the income calculations. At this time, it is unknown if adjustments to income are necessary. Cause ? Incorrect procedures were followed in regards to tenant leasing processes. Identification of a repeat finding ? This is a repeat finding from the immediate previous audit, 2021-001. Recommendation ? Procedures surrounding tenant leasing processes should be strengthened.
Statement of Condition ? For the Low Rent Public Housing, we reviewed 40 tenant files (recertification files and new tenant files) for fiscal year ended March 31, 2022. We reviewed 5 files for tenants who moved out during the fiscal year ended March 31, 2022. The selected files represented a sample of all files in the three AMPS. We noted 1 instance in which a non-disabled head of household received the $400 income deduction for disability. Criteria ? Per the Public Housing Occupancy Guidebook (Income Determination - Section 6.2), ?An elderly or disabled family is any family in which the head, spouse, or co-head (or the sole member) is at least 62 years of age or a person with disabilities.? Effect ? Tenant rent was understated by $10 per month. Cause ? The disability allowance was incorrectly provided to the family. Identification of a repeat finding ? This is a repeat finding from the immediate previous audit, 2021-002. Recommendation ? Procedures surrounding tenant leasing processes should be strengthened.
2022-003: Statement of Condition ? For the Low Rent Public Housing, we reviewed 40 tenant files (recertification files and new tenant files) for fiscal year ended March 31, 2022. We reviewed 5 files for tenants who moved out during the fiscal year ended March 31, 2022. The selected files represented a sample of all files in the three AMPS. We noted 1 instance in which social security income was incorrectly calculated in determining total tenant income. Criteria ? Per the Public Housing Occupancy Guidebook (Section 3.9), ?The gross amount of social security benefit income, prior to Medicare or other deductions, must be counted as income??. Effect ? For the file referenced above, social security benefits were not included in the calculation. The net effect of this error was to understate tenant rental income by $135 per month. Cause ? Incorrect procedures were followed in regards to calculating total tenant income. Identification of a repeat finding ? This is a repeat finding from the immediate previous audit, 2021-003. Recommendation ? Procedures surrounding tenant rent calculation processes should be strengthened.
Statement of Condition ? For the Low Rent Public Housing, we reviewed 40 tenant files (recertification files and new tenant files) for fiscal year ended March 31, 2022. We reviewed 5 files for tenants who moved out during the fiscal year ended March 31, 2022. The selected files represented a sample of all files in the three AMPS. We noted 1 instance in which the dependent allowance ($480 deduction) was granted to a non-eligible tenant. Criteria ? Per the Public Housing Occupancy Guidebook (Income Determination - Section 6.1), ?The family receives an allowance of $480 for each family member who is 1) under 18 years of age, 2) a person with disabilities, or 3) a full-time student. Effect ? In the instance noted above, a $480 allowance was calculated for a household member that did not meet any of the criteria stated above. The net effect of this error was $0, as the family was paying flat rent. Cause ? Incorrect procedures were followed in regards to calculating total tenant income. Recommendation ? Procedures surrounding tenant rent calculation processes should be strengthened.
2022-005: Statement of Condition ? For the Low Rent Public Housing, we reviewed 40 tenant files (recertification files and new tenant files) for fiscal year ended March 31, 2022. We reviewed 5 files for tenants who moved out during the fiscal year ended March 31, 2022. The selected files represented a sample of all files in the three AMPS. We noted 1 instance in which an interim recalculation of tenant rent was not entered into the rental register system or charged to the tenant. Criteria ? Per the Public Housing Occupancy Guidebook (Reexaminations - Section 2.5), ?The purpose of an interim reexamination is to determine the continued eligibility of the family and adjust the rent, if necessary.? Effect ? For the file referenced above, the interim calculation increased the amount of rent that should have been paid by the tenant. The net effect of this error was to understate tenant rental income by $446 per month. Cause ? Incorrect procedures were followed in regards to calculating total tenant income. Recommendation ? Procedures surrounding tenant rent calculation processes should be strengthened.
2022-006: Statement of Condition ? For the Housing Choice Voucher Program, we reviewed 40 files (recertification files and new files) for fiscal year ended March 31, 2022. We reviewed 5 files for tenants who moved out during the fiscal year ended March 31, 2022. We noted 3 instances in which social security benefits were improperly calculated in determining annual family income. Criteria ? Per the Housing Choice Voucher Guidebook (Reexaminations - Section 2.1), ?Fixed income ? mean(s) periodic payments at reasonably predictable levels from one or more of the following sources (including) Social Security, Supplemental Security Income, Supplemental Disability Insurance.? Effect ? For the files referenced above, the following total family income calculation errors were noted: 1) periodic social security benefits were not included, 2) annualized benefits were entered incorrectly in the calculation, and 3) one-time death benefit payment was annualized and included in income. The net effect of these errors was to understate family rent payment by $134 per month. Cause ? Incorrect procedures were followed in regards to calculating social security benefits for inclusion in total family payments. Recommendation ? Procedures surrounding tenant rent calculation processes should be strengthened.
2022-007: Statement of Condition ? For the Housing Choice Voucher Program, we reviewed 40 files (recertification files and new files) for fiscal year ended March 31, 2022. We reviewed 5 files for tenants who moved out during the fiscal year ended March 31, 2022. In 4 instances, we noted that outdated information was used to calculate annual family income. Criteria ? Per the Housing Choice Voucher Guidebook (Reexaminations - Section 2.1), ?When completing a reexamination, PHAs must obtain and document ? third-party verification of ? changes in income, assets, deductions, expenses...? Effect ? For the instances noted above, the Authority is working with the families to obtain updated information to determine if adjustments should have been made in the income calculations. At this time, it is unknown if adjustments to income are necessary. Cause ? Incorrect procedures were followed in regards to family income calculations. Recommendation ? Procedures surrounding family income recertification processes should be strengthened.
Statement of Condition ? For the Low Rent Public Housing, we reviewed 40 tenant files (recertification files and new tenant files) for fiscal year ended March 31, 2022. We reviewed 5 files for tenants who moved out during the fiscal year ended March 31, 2022. The selected files represented a sample of all files in the three AMPS. We noted 4 instances in which the EIV indicated wages for household members. There was no follow up documentation in the files indicating that these wages should or should not be included in the household income calculation. Criteria ? Per the Public Housing Occupancy Guidebook (Section 8.4.5), ?When a source of income appears in EIV that the family did not report, the Authority must investigate to determine if the family is currently receiving income from that source.? Effect ? For the instances noted above, the Authority is working with the families to determine if additional wages should be included in the income calculations. At this time, it is unknown if adjustments to income are necessary. Cause ? Incorrect procedures were followed in regards to tenant leasing processes. Identification of a repeat finding ? This is a repeat finding from the immediate previous audit, 2021-001. Recommendation ? Procedures surrounding tenant leasing processes should be strengthened.
Statement of Condition ? For the Low Rent Public Housing, we reviewed 40 tenant files (recertification files and new tenant files) for fiscal year ended March 31, 2022. We reviewed 5 files for tenants who moved out during the fiscal year ended March 31, 2022. The selected files represented a sample of all files in the three AMPS. We noted 1 instance in which a non-disabled head of household received the $400 income deduction for disability. Criteria ? Per the Public Housing Occupancy Guidebook (Income Determination - Section 6.2), ?An elderly or disabled family is any family in which the head, spouse, or co-head (or the sole member) is at least 62 years of age or a person with disabilities.? Effect ? Tenant rent was understated by $10 per month. Cause ? The disability allowance was incorrectly provided to the family. Identification of a repeat finding ? This is a repeat finding from the immediate previous audit, 2021-002. Recommendation ? Procedures surrounding tenant leasing processes should be strengthened.
2022-003: Statement of Condition ? For the Low Rent Public Housing, we reviewed 40 tenant files (recertification files and new tenant files) for fiscal year ended March 31, 2022. We reviewed 5 files for tenants who moved out during the fiscal year ended March 31, 2022. The selected files represented a sample of all files in the three AMPS. We noted 1 instance in which social security income was incorrectly calculated in determining total tenant income. Criteria ? Per the Public Housing Occupancy Guidebook (Section 3.9), ?The gross amount of social security benefit income, prior to Medicare or other deductions, must be counted as income??. Effect ? For the file referenced above, social security benefits were not included in the calculation. The net effect of this error was to understate tenant rental income by $135 per month. Cause ? Incorrect procedures were followed in regards to calculating total tenant income. Identification of a repeat finding ? This is a repeat finding from the immediate previous audit, 2021-003. Recommendation ? Procedures surrounding tenant rent calculation processes should be strengthened.
Statement of Condition ? For the Low Rent Public Housing, we reviewed 40 tenant files (recertification files and new tenant files) for fiscal year ended March 31, 2022. We reviewed 5 files for tenants who moved out during the fiscal year ended March 31, 2022. The selected files represented a sample of all files in the three AMPS. We noted 1 instance in which the dependent allowance ($480 deduction) was granted to a non-eligible tenant. Criteria ? Per the Public Housing Occupancy Guidebook (Income Determination - Section 6.1), ?The family receives an allowance of $480 for each family member who is 1) under 18 years of age, 2) a person with disabilities, or 3) a full-time student. Effect ? In the instance noted above, a $480 allowance was calculated for a household member that did not meet any of the criteria stated above. The net effect of this error was $0, as the family was paying flat rent. Cause ? Incorrect procedures were followed in regards to calculating total tenant income. Recommendation ? Procedures surrounding tenant rent calculation processes should be strengthened.
2022-005: Statement of Condition ? For the Low Rent Public Housing, we reviewed 40 tenant files (recertification files and new tenant files) for fiscal year ended March 31, 2022. We reviewed 5 files for tenants who moved out during the fiscal year ended March 31, 2022. The selected files represented a sample of all files in the three AMPS. We noted 1 instance in which an interim recalculation of tenant rent was not entered into the rental register system or charged to the tenant. Criteria ? Per the Public Housing Occupancy Guidebook (Reexaminations - Section 2.5), ?The purpose of an interim reexamination is to determine the continued eligibility of the family and adjust the rent, if necessary.? Effect ? For the file referenced above, the interim calculation increased the amount of rent that should have been paid by the tenant. The net effect of this error was to understate tenant rental income by $446 per month. Cause ? Incorrect procedures were followed in regards to calculating total tenant income. Recommendation ? Procedures surrounding tenant rent calculation processes should be strengthened.