FAC Explorer

Audit 334817

FY End
2024-03-31
Total Expended
$58.04M
Findings
4
Programs
6
Organization: West Palm Beach Housing Authority (FL)
Year: 2024 Accepted: 2024-12-26
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
516912 2024-001 Significant Deficiency - E
516913 2024-002 Significant Deficiency - AB
1093354 2024-001 Significant Deficiency - E
1093355 2024-002 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
14.881 Moving to Work Demonstration Program $50.91M Yes 2
14.871 Section 8 Housing Choice Vouchers $1.72M - 0
14.195 Project-Based Rental Assistance (pbra) $1.35M - 0
14.879 Mainstream Vouchers $408,928 - 0
14.896 Family Self-Sufficiency Program $144,580 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $31,465 - 0

Contacts

Name Title Type
MW1GLT66TTJ6 Dale Jones Auditee
5616558530 Mandy Merchant Auditor
No contacts on file

Notes to SEFA

Title: HOUSING CHOICE VOUCHER CLUSTER Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Authority under programs of the federal government for the year ended March 31, 2024. 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. 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. For loans, the value of noncash awards expended is equal to the amount of loan proceeds expended plus the year-end balance of loans from previous years for which the federal government imposes continuing compliance requirements. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Authority received $3,480,362 in federal funding for the Section 8 Housing Choice Voucher Program (ALN 14.871), $408,928 for Mainstream (ALN 14.879), and $1,717,477 for Emergency Housing Voucher (ALN 14.871) during the year. The Authority reported $3,480,362, $423,438, and $1,758,849 in expenditures on a full accrual basis for the Section 8 Housing Choice Voucher Program, Mainstream, and Emergency Housing Voucher, respectively, during the year, which were paid with federal and nonfederal funds. The Authority reported $86,049 in Port-In Housing Assistance Payments during the fiscal year.
Title: MOVING TO WORK DEMONSTRATION PROGRAM Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Authority under programs of the federal government for the year ended March 31, 2024. 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. 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. For loans, the value of noncash awards expended is equal to the amount of loan proceeds expended plus the year-end balance of loans from previous years for which the federal government imposes continuing compliance requirements. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Authority received $50,909,863 in federal funding for the Moving to Work Program (ALN 14.881) which is comprised of Demonstration Program for Low Rent, Capital Fund, and HCV Program during the year. The Authority reported $50,092,134 in expenditures on a full accrual basis for the Moving to Work Program during the year. Expenses were paid for by current year HUD funding, tenant rent, other sources of revenue, and prior year reserves.
Title: SECTION 8 HOUSING ASSISTANCE PAYMENT PROGRAM Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Authority under programs of the federal government for the year ended March 31, 2024. 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. 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. For loans, the value of noncash awards expended is equal to the amount of loan proceeds expended plus the year-end balance of loans from previous years for which the federal government imposes continuing compliance requirements. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Authority received $1,349,084 in federal funding for the Section 8 Housing Assistance Payment Program (ALN 14.195) during the year. The Authority reported $3,051,785 in expenditures on a full accrual basis for the Section 8 Housing Assistance Payment Program during the year, which were paid for by current year HUD funding, tenant rent, and prior year reserves.

Finding Details

Finding 2024-001
Federal Agency: Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: FL009, 2024 Award Period: April 1, 2023 to March 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Beneficiaries must be “low-income families,” as defined in Section 3(b)(2) of the 1937 Housing Act (42 USC 1437a(b)(2)) (Section 204(b) of Pub. L. No. 104-134 (42 USC 1437f (note))). Per the Authority's administrative plan a family’s income determines eligibility for assistance and is also used to calculate the family’s payment and the WPBHA’s subsidy. The WPBHA will use the policies and methods described in "Annual Income" chapter to ensure that only eligible families receive assistance and that no family pays more or less than its obligation under the regulations. Condition: During the testing of the Moving to Work Demonstration Program housing choice voucher tenant files, certain eligibility compliance deficiencies were noted. Of the tenant file provided, auditor noted 2 instances where the Authority incorrectly calculated income that was reported on the HUD- 50058. Questioned costs: $2,623 Context: Out of 40 files, 2 files contained errors as noted above. Cause: The Authority failed to report the correct annual income to ensure compliance with HUD rules and regulations, as well as their administrative policy. Effect: The Authority does not have adequate procedures in place to ensure that the annual income reported on the HUD-50058 was calculated correctly. Repeat Finding: No Recommendation: We recommend management should designate one person to ensure that income is correctly calculated and housing specialists have adequate training on income calculations in accordance with HUD and the Authority's administrative plan. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-002
Federal Agency: Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: FL009, 2024 Award Period: April 1, 2023 to March 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The authorizations in Attachment C of the Standard MTW Agreement and the Appendixes I and II of the MTW Operations Notice include acceptable uses of MTW funds and administrative activities related to both Public Housing (Assistance Listing 14.850) and Section 8 Housing Choice Vouchers (Assistance Listing 14.871), authorizations related to Public Housing only, authorizations related to Section 8 Housing Choice Vouchers only, and authorizations related to family self-sufficiency. Unless otherwise stated in Attachment D of the Standard MTW Agreement, the MTW Demonstration Program applies to all of the PHA’s public housing-assisted units (including PHA-owned properties and units comprising a part of mixed-income, mixed finance communities), tenant-based Section 8 voucher assistance, Section 8 project-based voucher assistance under Section 8(o) and Homeownership units developed using Section 8(y) voucher assistance. Condition: During the testing of the Moving to Work Demonstration Program tenant files, certain unallowable costs were noted. Of the timesheets provided, auditor noted 2 instances were the overtime rate was paid but the employee hadn't reached 75 regular hours worked as per Authority Policy. Questioned costs: $293 Context: Out of 40 files, 2 files contained errors as noted above. Cause: The Authority failed to correctly code the employees hours worked leading to several instances of a employee’s being overpaid. This was due to errors when the managers approved employee overtime. Effect: The Authority does not have adequate procedures in place over payroll processes. Repeat Finding: No Recommendation: We recommend the authority should evaluate their procedures over payroll processes and perform training with the managers who are approving the hours. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-001
Federal Agency: Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: FL009, 2024 Award Period: April 1, 2023 to March 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Beneficiaries must be “low-income families,” as defined in Section 3(b)(2) of the 1937 Housing Act (42 USC 1437a(b)(2)) (Section 204(b) of Pub. L. No. 104-134 (42 USC 1437f (note))). Per the Authority's administrative plan a family’s income determines eligibility for assistance and is also used to calculate the family’s payment and the WPBHA’s subsidy. The WPBHA will use the policies and methods described in "Annual Income" chapter to ensure that only eligible families receive assistance and that no family pays more or less than its obligation under the regulations. Condition: During the testing of the Moving to Work Demonstration Program housing choice voucher tenant files, certain eligibility compliance deficiencies were noted. Of the tenant file provided, auditor noted 2 instances where the Authority incorrectly calculated income that was reported on the HUD- 50058. Questioned costs: $2,623 Context: Out of 40 files, 2 files contained errors as noted above. Cause: The Authority failed to report the correct annual income to ensure compliance with HUD rules and regulations, as well as their administrative policy. Effect: The Authority does not have adequate procedures in place to ensure that the annual income reported on the HUD-50058 was calculated correctly. Repeat Finding: No Recommendation: We recommend management should designate one person to ensure that income is correctly calculated and housing specialists have adequate training on income calculations in accordance with HUD and the Authority's administrative plan. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-002
Federal Agency: Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: FL009, 2024 Award Period: April 1, 2023 to March 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The authorizations in Attachment C of the Standard MTW Agreement and the Appendixes I and II of the MTW Operations Notice include acceptable uses of MTW funds and administrative activities related to both Public Housing (Assistance Listing 14.850) and Section 8 Housing Choice Vouchers (Assistance Listing 14.871), authorizations related to Public Housing only, authorizations related to Section 8 Housing Choice Vouchers only, and authorizations related to family self-sufficiency. Unless otherwise stated in Attachment D of the Standard MTW Agreement, the MTW Demonstration Program applies to all of the PHA’s public housing-assisted units (including PHA-owned properties and units comprising a part of mixed-income, mixed finance communities), tenant-based Section 8 voucher assistance, Section 8 project-based voucher assistance under Section 8(o) and Homeownership units developed using Section 8(y) voucher assistance. Condition: During the testing of the Moving to Work Demonstration Program tenant files, certain unallowable costs were noted. Of the timesheets provided, auditor noted 2 instances were the overtime rate was paid but the employee hadn't reached 75 regular hours worked as per Authority Policy. Questioned costs: $293 Context: Out of 40 files, 2 files contained errors as noted above. Cause: The Authority failed to correctly code the employees hours worked leading to several instances of a employee’s being overpaid. This was due to errors when the managers approved employee overtime. Effect: The Authority does not have adequate procedures in place over payroll processes. Repeat Finding: No Recommendation: We recommend the authority should evaluate their procedures over payroll processes and perform training with the managers who are approving the hours. Views of responsible officials: There is no disagreement with the audit finding.