FAC Explorer

Audit 341664

FY End
2023-03-31
Total Expended
$5.12M
Findings
6
Programs
3
Organization: Rome Housing Authority (NY)
Year: 2023 Accepted: 2025-02-07
Auditor: Smco

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
522393 2023-003 Significant Deficiency Yes N
522394 2023-004 Significant Deficiency Yes L
522395 2023-005 Significant Deficiency - C
1098835 2023-003 Significant Deficiency Yes N
1098836 2023-004 Significant Deficiency Yes L
1098837 2023-005 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $2.78M Yes 2
14.872 Public Housing Capital Fund $2.00M Yes 1
14.850 Public Housing Operating Fund $340,532 - 0

Contacts

Name Title Type
VXJCYZT7JKL8 Tami Lucia Auditee
3153372600 Cole Monroe Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1: SCOPE OF PRESENTATION Accounting Policies: The accompanying schedule presents the expenditures incurred (and related awards received) by the Rome Housing 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 blended or discretely present component units have been included. 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: The Authority has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414. The accompanying schedule presents the expenditures incurred (and related awards received) by the Rome Housing 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 blended or discretely present component units have been included.
Title: NOTE 2: BASIS OF ACCOUNTING Accounting Policies: The accompanying schedule presents the expenditures incurred (and related awards received) by the Rome Housing 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 blended or discretely present component units have been included. 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: The Authority has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414. 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.
Title: NOTE 3: 10% DE MINIMIS INDIRECT COST RATE Accounting Policies: The accompanying schedule presents the expenditures incurred (and related awards received) by the Rome Housing 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 blended or discretely present component units have been included. 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: The Authority has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414. The Authority has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414.

Finding Details

Finding 2023-003
Program Name Housing Choice Vouchers "Internal Control" Significant Deficiency ALN Number 14.871 N Special Test and Provisions 2023-003 Selection from the Waiting List Criteria Except as provided in 24 CFR section 982.203 Special admission (nonwaiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition Management did not keep record of a stagnate copy of the waiting list. Context Due to the software only tracking waiting list perpetually, there was no way to test new move-ins were pulled according with PHA administrative plan. Cause Management was unaware of the requirement. Effect Unable to verify internal controls or compliance during audit period on this compliance point. Recommendations Print waiting list each time new move-in is completed and retain printed list. Management Views Management agrees.
Finding 2023-004
Program Name Housing Choice Vouchers Noncompliance Significant Deficiency ALN Number 14.871 L Reporting 2022-004 Financial Assessment Subsystem Criteria Financial Data Schedule (FDS) audited submissions are due 9 months after fiscal year end (24 CFR section 5.801). Condition Management missed the deadline for the audited submission to the FDS system. Context The audited numbers were not available until 2024. Cause The failure to meet the reporting deadline can be attributed to the audit not being completed within the 9 month required period after the fiscal year end. Effect The Authority will receive a lower SEMAP score and will be classified as a troubled housing authority which could impact its subsidies. Recommendations The Authority needs to improve its internal controls over financial reporting by submitting its financial data on a timelier basis and modifying its procedures to minimize its reliance on external spreadsheets for financial information. Management Views Management agrees.
Finding 2023-005
Program Name Public Housing Capital Fund Program Noncompliance Significant Deficiency ALN Number 14.872 C Cash Management 2023-005 Drawing of Capital Funds Criteria Per 24 CFR 200.05, Housing Authorites are to minimuze the time federal funds are dranw down to expenditure. Additionally 24 CFR 905.310 states that PHA shall iniiate a fund requisition from HUD only when funds are due and payable, unless HUD approves another payment schedule. Condition Management did not follow the 3 day rule. Context During a RAD conversion, management drew down CFP funds to provide funding for RAD tax credit property. Instead of providing all funds to the RAD development within 3 days. Management held onto the funds and paid for draws as invoiced. Cause Management drew funds from CFP when funds were not due. Effect The Authority is not in complinace with Cash Management rules relating to the Capital Fund Program. Recommendations The Authority needs to understand and comply with Public housing Capital Fund Program's cash management rules. Management Views Management agrees.
Finding 2023-003
Program Name Housing Choice Vouchers "Internal Control" Significant Deficiency ALN Number 14.871 N Special Test and Provisions 2023-003 Selection from the Waiting List Criteria Except as provided in 24 CFR section 982.203 Special admission (nonwaiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition Management did not keep record of a stagnate copy of the waiting list. Context Due to the software only tracking waiting list perpetually, there was no way to test new move-ins were pulled according with PHA administrative plan. Cause Management was unaware of the requirement. Effect Unable to verify internal controls or compliance during audit period on this compliance point. Recommendations Print waiting list each time new move-in is completed and retain printed list. Management Views Management agrees.
Finding 2023-004
Program Name Housing Choice Vouchers Noncompliance Significant Deficiency ALN Number 14.871 L Reporting 2022-004 Financial Assessment Subsystem Criteria Financial Data Schedule (FDS) audited submissions are due 9 months after fiscal year end (24 CFR section 5.801). Condition Management missed the deadline for the audited submission to the FDS system. Context The audited numbers were not available until 2024. Cause The failure to meet the reporting deadline can be attributed to the audit not being completed within the 9 month required period after the fiscal year end. Effect The Authority will receive a lower SEMAP score and will be classified as a troubled housing authority which could impact its subsidies. Recommendations The Authority needs to improve its internal controls over financial reporting by submitting its financial data on a timelier basis and modifying its procedures to minimize its reliance on external spreadsheets for financial information. Management Views Management agrees.
Finding 2023-005
Program Name Public Housing Capital Fund Program Noncompliance Significant Deficiency ALN Number 14.872 C Cash Management 2023-005 Drawing of Capital Funds Criteria Per 24 CFR 200.05, Housing Authorites are to minimuze the time federal funds are dranw down to expenditure. Additionally 24 CFR 905.310 states that PHA shall iniiate a fund requisition from HUD only when funds are due and payable, unless HUD approves another payment schedule. Condition Management did not follow the 3 day rule. Context During a RAD conversion, management drew down CFP funds to provide funding for RAD tax credit property. Instead of providing all funds to the RAD development within 3 days. Management held onto the funds and paid for draws as invoiced. Cause Management drew funds from CFP when funds were not due. Effect The Authority is not in complinace with Cash Management rules relating to the Capital Fund Program. Recommendations The Authority needs to understand and comply with Public housing Capital Fund Program's cash management rules. Management Views Management agrees.