FAC Explorer

Audit 324736

FY End
2023-06-30
Total Expended
$13.92M
Findings
6
Programs
7
Organization: Housing Authority of the City of Annapolis (MD)
Year: 2023 Accepted: 2024-10-15
Auditor: Rubino & Company Chartered

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
502699 2023-001 Material Weakness Yes B
502700 2023-002 Significant Deficiency Yes L
502701 2023-002 Significant Deficiency Yes L
1079141 2023-001 Material Weakness Yes B
1079142 2023-002 Significant Deficiency Yes L
1079143 2023-002 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $7.49M Yes 1
14.850 Public Housing Operating Fund $3.33M Yes 2
14.872 Public Housing Capital Fund $2.29M - 0
14.892 Choice Neighborhoods Planning Grants $310,000 - 0
14.218 Community Development Block Grants/entitlement Grants $288,879 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $111,600 - 0
14.896 Family Self-Sufficiency Program $96,723 - 0

Contacts

Name Title Type
CCWTQZMSKTT4 Melissa Maddox-Evans Auditee
4102678000 Allan Kitchen Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1. BASIS OF PRESENTATION Accounting Policies: NOTE 2. SUMMARY OF SIGNIFICANT 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 allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: NOTE 4. INDIRECT COST RATE The Authority has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Housing Authority of the City of Annapolis (the Authority) under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.
Title: NOTE 3. SUBRECIPIENTS Accounting Policies: NOTE 2. SUMMARY OF SIGNIFICANT 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 allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: NOTE 4. INDIRECT COST RATE The Authority has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Authority did not pass through any federal awards to subrecipients during the year ended June 30, 2023.

Finding Details

Finding 2023-001
Finding 2023-001: Federal Program Funds Utilized for Non-Federal Programs (Material Weakness, Material Noncompliance) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Public and Indian Housing Federal Assistance Listing Number: 14.850 Compliance Requirement: Allowable Costs Criteria: Federal guidelines, HUD regulations, and specific grant provisions mandate that federal funds are not commingled with other federally funded programs and that the funds for one program not be utilized to pay for the costs of another program. Condition: Based on the balance of the Public Housing interfund receivable, it appears that funds from Public Housing have been used to subsidize the Central Office Cost Center (COCC). Context: As of June 30, 2023, Public Housing had an interfund receivable of $1,768,943. Effect: The Authority risks violating federal funding regulations as it is unable to identify a nonfederal source to cover the costs of operations and avoid using other program’s cash flow to cover the costs of operating the COCC. Cause: The Authority does not have enough cash on hand to adequately fund the COCC’s operations. Recommendation: The Authority should locate additional sources of non-federal funds or reduce costs sufficiently so that the program can have enough cash to cover ongoing operations. Repeat Finding: This is a repeat finding. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2023-002
Finding 2023-002: Late Submission of Financial Statements to FAC and REAC (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: All Federal Programs Federal Assistance Listing Number: 14.850, 14.871 Compliance Requirement: Reporting Criteria: Per 2 CFR Section 200.512, the Authority is required to submit the Data Collection Form and the rest of the reporting package within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Per 2 CFR Section 902.33, the Authority is required to submit its audited Financial Data Schedule (FDS) and audited financial statements no later than 9 months after the PHA’s fiscal year end. Condition: The Authority did not submit its audited financial statements to the Federal Audit Clearinghouse and to REAC by the required due dates. Context: PHAs are required to submit an audited FDS to FAC and REAC within 9 months of fiscal year end. Effect: The Authority did not submit its audited FDS to REAC by the required due date. Cause: The Authority did not have the proper controls in place to ensure the unaudited FDS was re-submitted on time. Repeat Finding: This is a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the financial reporting package and audited financial statements are submitted by the required due date. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2023-002
Finding 2023-002: Late Submission of Financial Statements to FAC and REAC (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: All Federal Programs Federal Assistance Listing Number: 14.850, 14.871 Compliance Requirement: Reporting Criteria: Per 2 CFR Section 200.512, the Authority is required to submit the Data Collection Form and the rest of the reporting package within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Per 2 CFR Section 902.33, the Authority is required to submit its audited Financial Data Schedule (FDS) and audited financial statements no later than 9 months after the PHA’s fiscal year end. Condition: The Authority did not submit its audited financial statements to the Federal Audit Clearinghouse and to REAC by the required due dates. Context: PHAs are required to submit an audited FDS to FAC and REAC within 9 months of fiscal year end. Effect: The Authority did not submit its audited FDS to REAC by the required due date. Cause: The Authority did not have the proper controls in place to ensure the unaudited FDS was re-submitted on time. Repeat Finding: This is a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the financial reporting package and audited financial statements are submitted by the required due date. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2023-001
Finding 2023-001: Federal Program Funds Utilized for Non-Federal Programs (Material Weakness, Material Noncompliance) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Public and Indian Housing Federal Assistance Listing Number: 14.850 Compliance Requirement: Allowable Costs Criteria: Federal guidelines, HUD regulations, and specific grant provisions mandate that federal funds are not commingled with other federally funded programs and that the funds for one program not be utilized to pay for the costs of another program. Condition: Based on the balance of the Public Housing interfund receivable, it appears that funds from Public Housing have been used to subsidize the Central Office Cost Center (COCC). Context: As of June 30, 2023, Public Housing had an interfund receivable of $1,768,943. Effect: The Authority risks violating federal funding regulations as it is unable to identify a nonfederal source to cover the costs of operations and avoid using other program’s cash flow to cover the costs of operating the COCC. Cause: The Authority does not have enough cash on hand to adequately fund the COCC’s operations. Recommendation: The Authority should locate additional sources of non-federal funds or reduce costs sufficiently so that the program can have enough cash to cover ongoing operations. Repeat Finding: This is a repeat finding. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2023-002
Finding 2023-002: Late Submission of Financial Statements to FAC and REAC (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: All Federal Programs Federal Assistance Listing Number: 14.850, 14.871 Compliance Requirement: Reporting Criteria: Per 2 CFR Section 200.512, the Authority is required to submit the Data Collection Form and the rest of the reporting package within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Per 2 CFR Section 902.33, the Authority is required to submit its audited Financial Data Schedule (FDS) and audited financial statements no later than 9 months after the PHA’s fiscal year end. Condition: The Authority did not submit its audited financial statements to the Federal Audit Clearinghouse and to REAC by the required due dates. Context: PHAs are required to submit an audited FDS to FAC and REAC within 9 months of fiscal year end. Effect: The Authority did not submit its audited FDS to REAC by the required due date. Cause: The Authority did not have the proper controls in place to ensure the unaudited FDS was re-submitted on time. Repeat Finding: This is a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the financial reporting package and audited financial statements are submitted by the required due date. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2023-002
Finding 2023-002: Late Submission of Financial Statements to FAC and REAC (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: All Federal Programs Federal Assistance Listing Number: 14.850, 14.871 Compliance Requirement: Reporting Criteria: Per 2 CFR Section 200.512, the Authority is required to submit the Data Collection Form and the rest of the reporting package within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Per 2 CFR Section 902.33, the Authority is required to submit its audited Financial Data Schedule (FDS) and audited financial statements no later than 9 months after the PHA’s fiscal year end. Condition: The Authority did not submit its audited financial statements to the Federal Audit Clearinghouse and to REAC by the required due dates. Context: PHAs are required to submit an audited FDS to FAC and REAC within 9 months of fiscal year end. Effect: The Authority did not submit its audited FDS to REAC by the required due date. Cause: The Authority did not have the proper controls in place to ensure the unaudited FDS was re-submitted on time. Repeat Finding: This is a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the financial reporting package and audited financial statements are submitted by the required due date. Views of Responsible Officials: The Authority agrees with the finding.