FAC Explorer

Audit 332669

FY End
2022-09-30
Total Expended
$2.94M
Findings
12
Programs
3
Organization: Kingston Housing Authority (NY)
Year: 2022 Accepted: 2024-12-16
Auditor: Rbt CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
514392 2022-002 Significant Deficiency - L
514393 2022-003 Significant Deficiency - N
514394 2022-004 Significant Deficiency - EN
514395 2022-005 Significant Deficiency - E
514396 2022-006 Significant Deficiency - N
514397 2022-007 Significant Deficiency - I
1090834 2022-002 Significant Deficiency - L
1090835 2022-003 Significant Deficiency - N
1090836 2022-004 Significant Deficiency - EN
1090837 2022-005 Significant Deficiency - E
1090838 2022-006 Significant Deficiency - N
1090839 2022-007 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $1.78M Yes 3
14.850 Public Housing Operating Fund $768,678 Yes 3
14.872 Public Housing Capital Fund $383,930 - 0

Contacts

Name Title Type
YGWNP9JPGN55 Harolda Wilcox Auditee
8453311955 Jason Allen Auditor
No contacts on file

Notes to SEFA

Title: 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the Kingston Housing Authority (the “Authority”) for the year ended September 30, 2022. Federal Awards received directly from Federal agencies, as well as Federal awards passed through other governmental agencies, are included in the Schedule. 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 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. 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. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10 percent de minimus cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the Kingston Housing Authority (the “Authority”) for the year ended September 30, 2022. Federal Awards received directly from Federal agencies, as well as Federal awards passed through other governmental agencies, are included in the Schedule. 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 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. 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.
Title: 2. INDIRECT COST RATE Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the Kingston Housing Authority (the “Authority”) for the year ended September 30, 2022. Federal Awards received directly from Federal agencies, as well as Federal awards passed through other governmental agencies, are included in the Schedule. 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 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. 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. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10 percent de minimus cost rate as allowed under the Uniform Guidance. The Authority has elected not to use the 10 percent de minimus cost rate as allowed under the Uniform Guidance.
Title: 3. INSURANCE Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the Kingston Housing Authority (the “Authority”) for the year ended September 30, 2022. Federal Awards received directly from Federal agencies, as well as Federal awards passed through other governmental agencies, are included in the Schedule. 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 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. 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. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10 percent de minimus cost rate as allowed under the Uniform Guidance. No insurance is carried specifically to cover equipment purchased with federal funds. Any equipment purchased with federal funds has only a nominal value and is covered by the Authority’s casualty insurance policies.
Title: 4. RECONCILIATION TO FINANCIAL STATEMENTS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the Kingston Housing Authority (the “Authority”) for the year ended September 30, 2022. Federal Awards received directly from Federal agencies, as well as Federal awards passed through other governmental agencies, are included in the Schedule. 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 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. 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. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10 percent de minimus cost rate as allowed under the Uniform Guidance. The expenditures presented in the Schedule of Expenditures of Federal Awards reconcile to the grant reported in the Statement of Revenues, Expenses, and Changes in Net Position as follows: Federal expenditures as reported in the SEFA: $2,936,068 Reconciling items: State Funding Attributed to Blended Component Unit and State/Local Program: $2,249,491 Grants as reported in the Statement of Revenues, Expenses and Changes in Net Position, as Government Operating Grants, Other Government Grants, and Capital Grants: $1,152,608

Finding Details

Finding 2022-002
2022-002 – Reporting U.S. Department of Housing and Urban Development 14.871 – Housing Choice Vouchers Cluster L. Reporting – Compliance Finding – Significant Deficiency Condition: During review of the Housing Choice Voucher program, RBT noted that the PHA did not submit timely GAAP-based unaudited and audited financial information to HUD after year end, within two and a half months for unaudited, and nine months for audited. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The PHA did not have appropriate audit ready information/documentation in place in order for the unaudited FDS submission and audit to be conducted in a timely manner. Effect: Potential loss of funding due to noncompliance. Questioned Costs: None identified. Perspective: This is a systemic issue. Repeat Finding: Not a repeat finding. Recommendation: We recommend that the PHA prepares all required information/documentation to ensure that the Authority can submit the unaudited and audited financial information to HUD timely. Auditee’s Response: See corrective action plan.
Finding 2022-003
2022-003 – HQS Enforcement U.S. Department of Housing and Urban Development 14.871 – Section 8 Housing Choice Vouchers N. Special Tests and Provisions – HQS Enforcement – Significant Deficiency and Compliance Finding Condition: During review of the Housing Choice Voucher program, RBT noted that the Authority was not appropriately maintaining the listing of failed inspections to ensure follow up in accordance with HQS Enforcement. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority does not maintain a listing of failed HQS inspections to ensure proper HQS Enforcement. Effect: Potential noncompliance if a control is missed. Questioned Costs: None identified. Perspective: This is a systemic issue. Repeat Finding: Not a repeat finding. Recommendation: We recommend that the Authority establish a weekly/monthly list for the Tenant Housing Representative to use during the HQS inspection process to ensure all failed inspections are followed up and corrected timely. The list should be signed or initialed by the representative weekly/monthly to track and maintain the status of all HQS inspections. This checklist will serve as documentation that all HQS have been met. Auditee’s Response: See corrective action plan.
Finding 2022-004
2022-004 – Tenant Files U.S. Department of Housing and Urban Development 14.871 – Section 8 Housing Choice Vouchers Cluster E. Eligibility and N. Special Tests and Provisions – Significant Deficiency and Compliance Finding Condition: During review of the Housing Choice Voucher tenant files, RBT noted incomplete file documentation. RBT also noted that the Authority was not appropriately documenting the controls over Eligibility, Reasonable Rent, Utility Allowance, and HQS Inspections. Criteria: As a condition of admission or continued occupancy, PHAs must require the tenant and applicable family members to provide necessary information and releases for the PHA to verify income eligibility and obtain and document the family third-party verification of reported family income during annual reexamination of family income or during move-in. Additionally, as a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority does not have a central, uniform location to document the controls in place over Eligibility, Reasonable Rent, Utility Allowance and HQS Inspections. Effect: Potential loss of funding due to noncompliance or additional noncompliance if a control is missed. Questioned Costs: None identified. Perspective: Of the 25 tenant files tested, 2 files had incomplete forms HUD-9886, 1 file had no EIV third-party income verification, 1 file had an incomplete HQS inspection, and all 25 tenant files tested were missing documentation of internal controls. Repeat Finding: Not a repeat finding. Recommendation: We recommend that the Authority establish a checklist for the Tenant Housing Representative to use during the recertification process to ensure all compliance requirements are met. The checklist should be signed or initialed by the representative and maintained in the tenant’s file. This checklist will serve as documentation that all compliance requirements were verified for the tenant. Auditee’s Response: See corrective action plan.
Finding 2022-005
2022-005 – Tenant Files U.S. Department of Housing and Urban Development 14.850 – Public and Indian Housing E. Eligibility – Significant Deficiency and Compliance Finding Condition: During review of the Public and Indian Housing program, RBT noted incomplete file documentation. RBT also noted the Authority was not appropriately documenting controls over Eligibility and Environmental Contaminants and Remediation. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority does not have a central, uniform location to document the controls in place over Eligibility, Reasonable Rent, Utility Allowance, and HQS Inspections. Effect: Potential noncompliance if a control is missed. Questioned Costs: None identified. Perspective: Of the 15 tenant files tested, 4 files had an incomplete form HUD-9886 and all 15 files selected for testing were missing documentation of internal controls. Repeat Finding: Not a repeat finding. Recommendation: We recommend that the Authority establish a checklist for the Tenant Housing Representatives to use during the recertification process to ensure all compliance requirements are met. The checklist should be signed or initialed by the representative and maintained in the tenant’s file. This checklist will serve as documentation that all compliance requirements were verified for the tenant. Auditee’s Response: See corrective action plan.
Finding 2022-006
2022-006 – Recording of Declarations of Trust Against Public Housing Property U.S. Department of Housing and Urban Development 14.850 – Public and Indian Housing N. Special Tests and Provisions – Significant Deficiency and Compliance Finding Condition: During review of Public and Indian Housing program, RBT noted that the Authority could not locate the Declaration of Trust documents for all properties owned by the Authority and, therefore, the status of the documents was indeterminable. Criteria: A current Declaration of Trust (DOT) in a form acceptable to HUD, must be recorded against all public housing property owned by PHAs that has been acquired, developed, maintained, or assisted with funds from the US Housing Act of 1937. Cause: The Authority did not have controls in place over Declaration of Trusts sufficient to ensure the appropriate documents are current, recorded, and maintained for all properties owned by the Authority. Effect: The Authority is not in compliance with the Declaration of Trust requirement of the program. Questioned Costs: None identified. Perspective: The Authority could not locate a current DOT for any of the three properties selected for testing. Repeat Finding: Not a repeat finding. Recommendation: We recommend that the Authority complete and maintain a Declaration of Trust in a form acceptable by HUD for all properties of the Authority and that the Authority establish controls over Declarations of Trust to ensure the forms are completed and current in the future. Auditee’s Response: See corrective action plan.
Finding 2022-007
2022-007 – Procurement, Suspension, and Debarment U.S. Department of Housing and Urban Development 14.850 – Low Rent Public and Indian Housing I. Procurement, Suspension, and Debarment – Significant Deficiency Condition: The Authority did not have sufficient internal controls over debarment. Criteria: Federal expenditure debarment requirements provide for internal controls to ensure federal funds are not used to pay contractors that are debarred. Cause: The Authority did not have policies in place to document review of contractors for suspension and debarment. Effect: Suspension and debarment were not verified. Questioned Costs: None identified. Perspective: This is a systemic issue. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the Authority review its internal controls process for procurement and revise the procurement policy to include documenting suspension and debarment procedures when awarding contracts. Auditee’s Response: See corrective action plan.
Finding 2022-002
2022-002 – Reporting U.S. Department of Housing and Urban Development 14.871 – Housing Choice Vouchers Cluster L. Reporting – Compliance Finding – Significant Deficiency Condition: During review of the Housing Choice Voucher program, RBT noted that the PHA did not submit timely GAAP-based unaudited and audited financial information to HUD after year end, within two and a half months for unaudited, and nine months for audited. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The PHA did not have appropriate audit ready information/documentation in place in order for the unaudited FDS submission and audit to be conducted in a timely manner. Effect: Potential loss of funding due to noncompliance. Questioned Costs: None identified. Perspective: This is a systemic issue. Repeat Finding: Not a repeat finding. Recommendation: We recommend that the PHA prepares all required information/documentation to ensure that the Authority can submit the unaudited and audited financial information to HUD timely. Auditee’s Response: See corrective action plan.
Finding 2022-003
2022-003 – HQS Enforcement U.S. Department of Housing and Urban Development 14.871 – Section 8 Housing Choice Vouchers N. Special Tests and Provisions – HQS Enforcement – Significant Deficiency and Compliance Finding Condition: During review of the Housing Choice Voucher program, RBT noted that the Authority was not appropriately maintaining the listing of failed inspections to ensure follow up in accordance with HQS Enforcement. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority does not maintain a listing of failed HQS inspections to ensure proper HQS Enforcement. Effect: Potential noncompliance if a control is missed. Questioned Costs: None identified. Perspective: This is a systemic issue. Repeat Finding: Not a repeat finding. Recommendation: We recommend that the Authority establish a weekly/monthly list for the Tenant Housing Representative to use during the HQS inspection process to ensure all failed inspections are followed up and corrected timely. The list should be signed or initialed by the representative weekly/monthly to track and maintain the status of all HQS inspections. This checklist will serve as documentation that all HQS have been met. Auditee’s Response: See corrective action plan.
Finding 2022-004
2022-004 – Tenant Files U.S. Department of Housing and Urban Development 14.871 – Section 8 Housing Choice Vouchers Cluster E. Eligibility and N. Special Tests and Provisions – Significant Deficiency and Compliance Finding Condition: During review of the Housing Choice Voucher tenant files, RBT noted incomplete file documentation. RBT also noted that the Authority was not appropriately documenting the controls over Eligibility, Reasonable Rent, Utility Allowance, and HQS Inspections. Criteria: As a condition of admission or continued occupancy, PHAs must require the tenant and applicable family members to provide necessary information and releases for the PHA to verify income eligibility and obtain and document the family third-party verification of reported family income during annual reexamination of family income or during move-in. Additionally, as a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority does not have a central, uniform location to document the controls in place over Eligibility, Reasonable Rent, Utility Allowance and HQS Inspections. Effect: Potential loss of funding due to noncompliance or additional noncompliance if a control is missed. Questioned Costs: None identified. Perspective: Of the 25 tenant files tested, 2 files had incomplete forms HUD-9886, 1 file had no EIV third-party income verification, 1 file had an incomplete HQS inspection, and all 25 tenant files tested were missing documentation of internal controls. Repeat Finding: Not a repeat finding. Recommendation: We recommend that the Authority establish a checklist for the Tenant Housing Representative to use during the recertification process to ensure all compliance requirements are met. The checklist should be signed or initialed by the representative and maintained in the tenant’s file. This checklist will serve as documentation that all compliance requirements were verified for the tenant. Auditee’s Response: See corrective action plan.
Finding 2022-005
2022-005 – Tenant Files U.S. Department of Housing and Urban Development 14.850 – Public and Indian Housing E. Eligibility – Significant Deficiency and Compliance Finding Condition: During review of the Public and Indian Housing program, RBT noted incomplete file documentation. RBT also noted the Authority was not appropriately documenting controls over Eligibility and Environmental Contaminants and Remediation. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority does not have a central, uniform location to document the controls in place over Eligibility, Reasonable Rent, Utility Allowance, and HQS Inspections. Effect: Potential noncompliance if a control is missed. Questioned Costs: None identified. Perspective: Of the 15 tenant files tested, 4 files had an incomplete form HUD-9886 and all 15 files selected for testing were missing documentation of internal controls. Repeat Finding: Not a repeat finding. Recommendation: We recommend that the Authority establish a checklist for the Tenant Housing Representatives to use during the recertification process to ensure all compliance requirements are met. The checklist should be signed or initialed by the representative and maintained in the tenant’s file. This checklist will serve as documentation that all compliance requirements were verified for the tenant. Auditee’s Response: See corrective action plan.
Finding 2022-006
2022-006 – Recording of Declarations of Trust Against Public Housing Property U.S. Department of Housing and Urban Development 14.850 – Public and Indian Housing N. Special Tests and Provisions – Significant Deficiency and Compliance Finding Condition: During review of Public and Indian Housing program, RBT noted that the Authority could not locate the Declaration of Trust documents for all properties owned by the Authority and, therefore, the status of the documents was indeterminable. Criteria: A current Declaration of Trust (DOT) in a form acceptable to HUD, must be recorded against all public housing property owned by PHAs that has been acquired, developed, maintained, or assisted with funds from the US Housing Act of 1937. Cause: The Authority did not have controls in place over Declaration of Trusts sufficient to ensure the appropriate documents are current, recorded, and maintained for all properties owned by the Authority. Effect: The Authority is not in compliance with the Declaration of Trust requirement of the program. Questioned Costs: None identified. Perspective: The Authority could not locate a current DOT for any of the three properties selected for testing. Repeat Finding: Not a repeat finding. Recommendation: We recommend that the Authority complete and maintain a Declaration of Trust in a form acceptable by HUD for all properties of the Authority and that the Authority establish controls over Declarations of Trust to ensure the forms are completed and current in the future. Auditee’s Response: See corrective action plan.
Finding 2022-007
2022-007 – Procurement, Suspension, and Debarment U.S. Department of Housing and Urban Development 14.850 – Low Rent Public and Indian Housing I. Procurement, Suspension, and Debarment – Significant Deficiency Condition: The Authority did not have sufficient internal controls over debarment. Criteria: Federal expenditure debarment requirements provide for internal controls to ensure federal funds are not used to pay contractors that are debarred. Cause: The Authority did not have policies in place to document review of contractors for suspension and debarment. Effect: Suspension and debarment were not verified. Questioned Costs: None identified. Perspective: This is a systemic issue. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the Authority review its internal controls process for procurement and revise the procurement policy to include documenting suspension and debarment procedures when awarding contracts. Auditee’s Response: See corrective action plan.