FAC Explorer

Audit 346128

FY End
2024-09-30
Total Expended
$3.56M
Findings
6
Programs
5
Organization: Oak Ridge Housing Authority (TN)
Year: 2024 Accepted: 2025-03-14
Auditor: Smco

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
527042 2024-001 Significant Deficiency - N
527043 2024-002 Significant Deficiency - N
527044 2024-003 Significant Deficiency - E
1103484 2024-001 Significant Deficiency - N
1103485 2024-002 Significant Deficiency - N
1103486 2024-003 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $2.45M Yes 3
14.850 Public Housing Operating Fund $361,761 - 0
14.239 Home Investment Partnerships Program $358,755 - 0
14.872 Public Housing Capital Fund $330,000 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $61,989 - 0

Contacts

Name Title Type
MYN2YVRCJ8E5 Maria Catron Auditee
8654821006 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 Oak Ridge Housing Authority (the 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 Oak Ridge Housing Authority (the 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 Oak Ridge Housing Authority (the 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 Oak Ridge Housing Authority (the 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 2024-001
Program Name Housing Choice Vouchers "Internal Control" Significant Deficiency N Special Test and Provisions ALN 14.871 2024-001 Housing Quality Standards Inspection/HQS Enforcement Criteria "The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re‐inspections. The PHA must prepare a unit inspection report (24 CFR §§982.405, 983.103). Additionally, for units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA‐approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family‐caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404)." Condition During the audit, we noted multiple life threatening HQS deficiencies not reinspected withing 24 hours after the failed inspection. Context We selected a sample of 14 failed inspections that occurred during the fiscal year. Out of the 14 samples selected, 3 failed inspections were considered life threatening based on the PHA's admin plan. Of those 3, none were followed up within the 24 hour inspection period. Cause The PHA staff did not understand the compliance requirements relating to life threatening items. Effect The Authority is non‐compliant with the federal regulations over this federal program, this could potentially result in significant operating and financial penalties. Recommendations We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to these grants as well as maintaining more accurate and complete documentation of adherence to compliance. Management Views Management agrees, see Corrective Action Plan.
Finding 2024-002
US Department of Housing and Urban Development Direct Award Program Name Housing Choice Vouchers "Internal Control" Significant Deficiency N Special Test and Provisions ALN 14.871 2024-002 Utilities Allowance Calculation Criteria "In accordance with the 2014 Appropriations Act Section 242, the utility allowance for a family shall be the lower of: (1) The utility allowance amount for the family unit size; or (2) the utility allowance amount for the unit size of the unit rented by the family. However, upon the request of a family that includes a person with disabilities, the PHA must approve a utility allowance higher than the applicable amount if such a higher utility allowance is needed as a reasonable accommodation in accordance with HUD's regulations in 24 CFR part 8 to make the program accessible to and usable by the family member with a disability. This provision applies only to vouchers issued after the effective date of this notice (June 12, 2014) and to current program participants. For current program participants, a PHA must implement the new allowance at the family's next annual re-examination, provided that the PHA is able to provide a family with at least 60 days' notice prior to the re-examination. " Condition During the audit, we noted multiple HUD Forms 50058 had utility allowances calculated not in accordance with the above criteria. Context The Authority had roughly 270 vouchers issued throughout the fiscal year under examination which would translate to 3.240 Housing Assistance Payment transactions for the year. Of these we reviewed 40 individual Housing Assistance Payment transactions, and found 9 instances of noncompliance. Resulting in a 22.5% error rate. Extrapolation over all transactions that would result in 729 HAP transactions with this error. Cause Personnel responsible for calculating the utility allowances were not informed of requirements and no internal controls were in place to ensure compliance. Effect The Authority was in violation of the Federal Regulation which resulted in errors in calculating Housing Assistance Payments (HAP) and utility reimbursement payments. . Recommendations We recommend that management implement procedures to ensure compliance with the above regulations as it relates to the Section 8 Housing Choice Voucher Program. Management Views Management agrees, see Corrective Action Plan.
Finding 2024-003
US Department of Housing and Urban Development Direct Award Program Name Housing Choice Vouchers Compliance Significant Deficiency E Eligibility ALN 14.871 2024-003 Annual Re-Examination Criteria According to (24 CFR §§982.516) the PHA must conduct a re-examinations of family income and composition at least annually. Condition During the audit, we noted multiple participants having re-examininations not in accordance with the above criteria. The re-examinations were outside the 12 month requirement. Context The Authority had roughly 270 vouchers issued throughout the fiscal year under examination which would translate to 3.240 Housing Assistance Payment transactions for the year. Of these we reviewed 40 individual Housing Assistance Payment transactions, and found 8 instances of noncompliance. Resulting in a 20% error rate. Extrapolation over all transactions that would result in 648 HAP transactions with this error. Cause Controls over compliance associated with the Authority’s grants of federal funds are inadequate. Effect The Authority was in violation of the Federal Regulation which resulted in errors in calculating Housing Assistance Payments (HAP). Recommendations We recommend that management implement procedures to ensure compliance with the above regulations as it relates to the Section 8 Housing Choice Voucher Program. Management Views Management agrees, see Corrective Action Plan.
Finding 2024-001
Program Name Housing Choice Vouchers "Internal Control" Significant Deficiency N Special Test and Provisions ALN 14.871 2024-001 Housing Quality Standards Inspection/HQS Enforcement Criteria "The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re‐inspections. The PHA must prepare a unit inspection report (24 CFR §§982.405, 983.103). Additionally, for units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA‐approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family‐caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404)." Condition During the audit, we noted multiple life threatening HQS deficiencies not reinspected withing 24 hours after the failed inspection. Context We selected a sample of 14 failed inspections that occurred during the fiscal year. Out of the 14 samples selected, 3 failed inspections were considered life threatening based on the PHA's admin plan. Of those 3, none were followed up within the 24 hour inspection period. Cause The PHA staff did not understand the compliance requirements relating to life threatening items. Effect The Authority is non‐compliant with the federal regulations over this federal program, this could potentially result in significant operating and financial penalties. Recommendations We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to these grants as well as maintaining more accurate and complete documentation of adherence to compliance. Management Views Management agrees, see Corrective Action Plan.
Finding 2024-002
US Department of Housing and Urban Development Direct Award Program Name Housing Choice Vouchers "Internal Control" Significant Deficiency N Special Test and Provisions ALN 14.871 2024-002 Utilities Allowance Calculation Criteria "In accordance with the 2014 Appropriations Act Section 242, the utility allowance for a family shall be the lower of: (1) The utility allowance amount for the family unit size; or (2) the utility allowance amount for the unit size of the unit rented by the family. However, upon the request of a family that includes a person with disabilities, the PHA must approve a utility allowance higher than the applicable amount if such a higher utility allowance is needed as a reasonable accommodation in accordance with HUD's regulations in 24 CFR part 8 to make the program accessible to and usable by the family member with a disability. This provision applies only to vouchers issued after the effective date of this notice (June 12, 2014) and to current program participants. For current program participants, a PHA must implement the new allowance at the family's next annual re-examination, provided that the PHA is able to provide a family with at least 60 days' notice prior to the re-examination. " Condition During the audit, we noted multiple HUD Forms 50058 had utility allowances calculated not in accordance with the above criteria. Context The Authority had roughly 270 vouchers issued throughout the fiscal year under examination which would translate to 3.240 Housing Assistance Payment transactions for the year. Of these we reviewed 40 individual Housing Assistance Payment transactions, and found 9 instances of noncompliance. Resulting in a 22.5% error rate. Extrapolation over all transactions that would result in 729 HAP transactions with this error. Cause Personnel responsible for calculating the utility allowances were not informed of requirements and no internal controls were in place to ensure compliance. Effect The Authority was in violation of the Federal Regulation which resulted in errors in calculating Housing Assistance Payments (HAP) and utility reimbursement payments. . Recommendations We recommend that management implement procedures to ensure compliance with the above regulations as it relates to the Section 8 Housing Choice Voucher Program. Management Views Management agrees, see Corrective Action Plan.
Finding 2024-003
US Department of Housing and Urban Development Direct Award Program Name Housing Choice Vouchers Compliance Significant Deficiency E Eligibility ALN 14.871 2024-003 Annual Re-Examination Criteria According to (24 CFR §§982.516) the PHA must conduct a re-examinations of family income and composition at least annually. Condition During the audit, we noted multiple participants having re-examininations not in accordance with the above criteria. The re-examinations were outside the 12 month requirement. Context The Authority had roughly 270 vouchers issued throughout the fiscal year under examination which would translate to 3.240 Housing Assistance Payment transactions for the year. Of these we reviewed 40 individual Housing Assistance Payment transactions, and found 8 instances of noncompliance. Resulting in a 20% error rate. Extrapolation over all transactions that would result in 648 HAP transactions with this error. Cause Controls over compliance associated with the Authority’s grants of federal funds are inadequate. Effect The Authority was in violation of the Federal Regulation which resulted in errors in calculating Housing Assistance Payments (HAP). Recommendations We recommend that management implement procedures to ensure compliance with the above regulations as it relates to the Section 8 Housing Choice Voucher Program. Management Views Management agrees, see Corrective Action Plan.