Audit 341730

FY End
2021-03-31
Total Expended
$3.99M
Findings
2
Programs
4
Organization: Monticello Housing Authority (NY)
Year: 2021 Accepted: 2025-02-08
Auditor: Rbt CPAS LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
522453 2021-003 Significant Deficiency - EN
1098895 2021-003 Significant Deficiency - EN

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $3.23M Yes 1
14.850 Public Housing Operating Fund $402,565 - 0
14.872 Public Housing Capital Fund $195,697 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $42,261 - 0

Contacts

Name Title Type
LTPWJJ7UB6L6 Sharlene Leroy Auditee
8457946855 Benjamin Porter Auditor
No contacts on file

Notes to SEFA

Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the Monticello Housing Authority (the “Authority”) for the year ended March 31, 2021. 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 Monticello Housing Authority (the “Authority”) for the year ended March 31, 2021. 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: Indirect Cost Rate Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the Monticello Housing Authority (the “Authority”) for the year ended March 31, 2021. 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: Insurance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the Monticello Housing Authority (the “Authority”) for the year ended March 31, 2021. 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 purhcased 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: Reconciliation to Financial Statements Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the Monticello Housing Authority (the “Authority”) for the year ended March 31, 2021. 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 federal aid reported in the Statement of Revenue, Expenses, and Changes in Net Position as follows:

Finding Details

2021-003 – Documentation of Controls U.S. Department of Housing and Urban Development 14.871 – Section 8 Housing Choice Vouchers/Housing Voucher Cluster E. Eligibility and N. Special Tests and Provisions – Significant Deficiency Condition: During review of the Housing Choice Voucher program, RBT noted that the Authority was not appropriately documenting its controls over Eligibility, Reasonable Rent, Utility Allowance, and HQS Inspections. 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: Although the Authority was in compliance with the noted compliance attributes, none of the 25 tenant files selected for testing contained documentation of the internal controls performed. Repeat Finding: Not a repeat finding. Recommendation: We recommend that the Authority establish a checklist for the Housing Choice Voucher Coordinator to use during the recertification process to document the procedures performed to ensure all compliance requirements are met. The checklist should be signed or initialed by the Coordinator 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.
2021-003 – Documentation of Controls U.S. Department of Housing and Urban Development 14.871 – Section 8 Housing Choice Vouchers/Housing Voucher Cluster E. Eligibility and N. Special Tests and Provisions – Significant Deficiency Condition: During review of the Housing Choice Voucher program, RBT noted that the Authority was not appropriately documenting its controls over Eligibility, Reasonable Rent, Utility Allowance, and HQS Inspections. 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: Although the Authority was in compliance with the noted compliance attributes, none of the 25 tenant files selected for testing contained documentation of the internal controls performed. Repeat Finding: Not a repeat finding. Recommendation: We recommend that the Authority establish a checklist for the Housing Choice Voucher Coordinator to use during the recertification process to document the procedures performed to ensure all compliance requirements are met. The checklist should be signed or initialed by the Coordinator 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.