Audit 339440

FY End

2024-06-30

Total Expended

$2.10M

Findings

4

Programs

5

Organization: Sandusky Metropolitan Housing Authority (OH)

Year: 2024 Accepted: 2025-01-23

Auditor: Keith Faber Auditor of State

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
520004	2024-002	Material Weakness	-	N
520005	2024-002	Material Weakness	-	N
1096446	2024-002	Material Weakness	-	N
1096447	2024-002	Material Weakness	-	N

ALN	Program	Spent	Major	Findings
14.871	Section 8 Housing Choice Vouchers	$1.45M	Yes	1
14.879	Mainstream Vouchers	$300,561	Yes	1
14.850	Public Housing Operating Fund	$179,155	-	0
14.872	Public Housing Capital Fund	$168,271	-	0
14.239	Home Investment Partnerships Program	$4,188	-	0

Contacts

Name	Title	Type
JCYMEMPC4CK5	Cyndy Frankart	Auditee
4195022330	Jonathan Lawless, Cfe	Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation 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 Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. 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 accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Sandusky Metropolitan Housing Authority (the Authority) under programs of the federal government for the year ended June 30, 2024. The information on this Schedule is prepared 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.

Finding Details

Finding 2024-002

Special Tests and Provisions – Housing Quality Standards (HQS) Enforcement Finding Number: 2024-002 Assistance Listing Number and Title: AL # 14.871/14.879 Housing Choice Voucher Cluster Federal Award Identification Number / Year: OH054AF0148 / 2023 Federal Agency: U.S. Department of Housing and Urban Development Compliance Requirement: HQS Enforcement Pass-Through Entity: None Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR § 2400.101 gives regulatory effect to the Department of Housing & Urban Development for 2 CFR § 200.303 which requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain effective internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 24 CFR § 982.404(d)(2) provides that the Public Housing Authority (PHA) must abate the Housing Assistance Payment (HAP), including amounts that had been withheld, if the owner fails to make the repairs within the applicable cure period (within 24 hours of notification for life-threatening deficiencies and within 30 days of notification (or other reasonable period established by the PHA) for non-life-threatening deficiencies). Due to deficiencies in the Authority's internal controls over compliance requirements, seven percent of inspections tested for Housing Quality Standards compliance did not abate HAP payments after the owner failed to make the repairs noted in the inspection report within the 30 period. Failing to properly abate HAP payments could result in the Authority making payments to owners who do not meet Housing Quality Standards. The Authority should adopt policies and procedures for HAP payments to ensure compliance with 24 CFR § 982.404(d)(2)

Finding 2024-002

Special Tests and Provisions – Housing Quality Standards (HQS) Enforcement Finding Number: 2024-002 Assistance Listing Number and Title: AL # 14.871/14.879 Housing Choice Voucher Cluster Federal Award Identification Number / Year: OH054AF0148 / 2023 Federal Agency: U.S. Department of Housing and Urban Development Compliance Requirement: HQS Enforcement Pass-Through Entity: None Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR § 2400.101 gives regulatory effect to the Department of Housing & Urban Development for 2 CFR § 200.303 which requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain effective internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 24 CFR § 982.404(d)(2) provides that the Public Housing Authority (PHA) must abate the Housing Assistance Payment (HAP), including amounts that had been withheld, if the owner fails to make the repairs within the applicable cure period (within 24 hours of notification for life-threatening deficiencies and within 30 days of notification (or other reasonable period established by the PHA) for non-life-threatening deficiencies). Due to deficiencies in the Authority's internal controls over compliance requirements, seven percent of inspections tested for Housing Quality Standards compliance did not abate HAP payments after the owner failed to make the repairs noted in the inspection report within the 30 period. Failing to properly abate HAP payments could result in the Authority making payments to owners who do not meet Housing Quality Standards. The Authority should adopt policies and procedures for HAP payments to ensure compliance with 24 CFR § 982.404(d)(2)

Finding 2024-002

Special Tests and Provisions – Housing Quality Standards (HQS) Enforcement Finding Number: 2024-002 Assistance Listing Number and Title: AL # 14.871/14.879 Housing Choice Voucher Cluster Federal Award Identification Number / Year: OH054AF0148 / 2023 Federal Agency: U.S. Department of Housing and Urban Development Compliance Requirement: HQS Enforcement Pass-Through Entity: None Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR § 2400.101 gives regulatory effect to the Department of Housing & Urban Development for 2 CFR § 200.303 which requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain effective internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 24 CFR § 982.404(d)(2) provides that the Public Housing Authority (PHA) must abate the Housing Assistance Payment (HAP), including amounts that had been withheld, if the owner fails to make the repairs within the applicable cure period (within 24 hours of notification for life-threatening deficiencies and within 30 days of notification (or other reasonable period established by the PHA) for non-life-threatening deficiencies). Due to deficiencies in the Authority's internal controls over compliance requirements, seven percent of inspections tested for Housing Quality Standards compliance did not abate HAP payments after the owner failed to make the repairs noted in the inspection report within the 30 period. Failing to properly abate HAP payments could result in the Authority making payments to owners who do not meet Housing Quality Standards. The Authority should adopt policies and procedures for HAP payments to ensure compliance with 24 CFR § 982.404(d)(2)

Finding 2024-002

Special Tests and Provisions – Housing Quality Standards (HQS) Enforcement Finding Number: 2024-002 Assistance Listing Number and Title: AL # 14.871/14.879 Housing Choice Voucher Cluster Federal Award Identification Number / Year: OH054AF0148 / 2023 Federal Agency: U.S. Department of Housing and Urban Development Compliance Requirement: HQS Enforcement Pass-Through Entity: None Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR § 2400.101 gives regulatory effect to the Department of Housing & Urban Development for 2 CFR § 200.303 which requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain effective internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 24 CFR § 982.404(d)(2) provides that the Public Housing Authority (PHA) must abate the Housing Assistance Payment (HAP), including amounts that had been withheld, if the owner fails to make the repairs within the applicable cure period (within 24 hours of notification for life-threatening deficiencies and within 30 days of notification (or other reasonable period established by the PHA) for non-life-threatening deficiencies). Due to deficiencies in the Authority's internal controls over compliance requirements, seven percent of inspections tested for Housing Quality Standards compliance did not abate HAP payments after the owner failed to make the repairs noted in the inspection report within the 30 period. Failing to properly abate HAP payments could result in the Authority making payments to owners who do not meet Housing Quality Standards. The Authority should adopt policies and procedures for HAP payments to ensure compliance with 24 CFR § 982.404(d)(2)