FAC Explorer

Audit 328016

FY End
2024-03-31
Total Expended
$9.86M
Findings
2
Programs
3
Organization: Housing Authority of the City of Muncie (IN)
Year: 2024 Accepted: 2024-11-12
Auditor: Smith Marion & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
505363 2024-001 Significant Deficiency Yes N
1081805 2024-001 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $6.62M - 1
14.850 Public and Indian Housing $1.67M Yes 0
14.872 Public Housing Capital Fund $1.56M Yes 0

Contacts

Name Title Type
MVK8KLU9WBM5 Jerri Hacker Auditee
7652889242 Cole Monroe Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1: SCOPE OF PRESENTATION The accompanying schedule presents the expenditures incurred (and related awards received) by the Muncie Housing Authority (the Authority) that are reimbursable under federal programs of federal agencies providing financial assistance awards. For the purpose of this schedule, only the portion of the program expenditures reimbursable with such federal funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. This schedule also only includes the amounts expended by the Authority, none of the amount expended, if any, by the blend or discretely present component units have been included. NOTE 2: BASIS OF ACCOUNTING The expenditures included in the accompanying schedule were reported on the accrual basis of accounting. Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported included any property or equipment acquisitions incurred under the federal program. 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: N/A

Finding Details

Finding 2024-001
Criteria: The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re‐inspections. The PHA must prepare a unit inspection report (24 CFR §§982.405, 983.103). Condition: Units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA‐approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family‐caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Context: We selected a sample of 8 failed inspections that occurred during the fiscal year from a population of 16 total for the year. Out of the 8 samples selected, 6 of those lacked the proper documentation of a follow up for the failed inspection within the prescibed time frame above. Cause: Controls over compliance associated with the Authority’s HQS Enforcement are inadequate to detect these errors. Effect: The Authority is non‐compliant with the federal regulations over this federal program, this could potentially result in significant operating and financial penalties. Recommendations: We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to these grants as well as maintaining more accurate and complete documentation of adherence to compliance. Management Views: Management agrees with the audit finding.
Finding 2024-001
Criteria: The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re‐inspections. The PHA must prepare a unit inspection report (24 CFR §§982.405, 983.103). Condition: Units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA‐approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family‐caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Context: We selected a sample of 8 failed inspections that occurred during the fiscal year from a population of 16 total for the year. Out of the 8 samples selected, 6 of those lacked the proper documentation of a follow up for the failed inspection within the prescibed time frame above. Cause: Controls over compliance associated with the Authority’s HQS Enforcement are inadequate to detect these errors. Effect: The Authority is non‐compliant with the federal regulations over this federal program, this could potentially result in significant operating and financial penalties. Recommendations: We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to these grants as well as maintaining more accurate and complete documentation of adherence to compliance. Management Views: Management agrees with the audit finding.