Audit 348913

FY End

2024-06-30

Total Expended

$6.85M

Findings

4

Programs

4

Organization: Pittsfield Housing Authority (RI)

Year: 2024 Accepted: 2025-03-27

Auditor: Cbiz CPAS PC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
537636	2024-001	Material Weakness	Yes	E
537637	2024-002	Material Weakness	Yes	I
1114078	2024-001	Material Weakness	Yes	E
1114079	2024-002	Material Weakness	Yes	I

ALN	Program	Spent	Major	Findings
14.871	Section 8 Housing Choice Vouchers	$5.98M	Yes	0
14.850	Public Housing Operating Fund	$805,086	Yes	2
14.872	Public Housing Capital Fund	$48,164	-	0
21.027	Coronavirus State and Local Fiscal Recovery Funds	$20,800	-	0

Contacts

Name	Title	Type
NGFXCE3QD1E8	Tina Danzy	Auditee
4134435936	Michael Guyder	Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – BASIS OF PRESENTATION Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Pittsfield Housing Authority, under programs of the federal government for the year ended June 30, 2024. 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 Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Pittsfield Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Pittsfield Housing Authority. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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 performance-based awards, expenditures reported represent amounts earned. De Minimis Rate Used: N Rate Explanation: The Pittsfield Housing Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Pittsfield Housing Authority, under programs of the federal government for the year ended June 30, 2024. 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 Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Pittsfield Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Pittsfield Housing Authority.

Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Pittsfield Housing Authority, under programs of the federal government for the year ended June 30, 2024. 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 Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Pittsfield Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Pittsfield Housing Authority. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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 performance-based awards, expenditures reported represent amounts earned. De Minimis Rate Used: N Rate Explanation: The Pittsfield Housing Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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 performance-based awards, expenditures reported represent amounts earned.

Title: NOTE 3 – INDIRECT COST RATE Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Pittsfield Housing Authority, under programs of the federal government for the year ended June 30, 2024. 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 Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Pittsfield Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Pittsfield Housing Authority. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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 performance-based awards, expenditures reported represent amounts earned. De Minimis Rate Used: N Rate Explanation: The Pittsfield Housing Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Pittsfield Housing Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-001

2024-001 –ELIGIBILITY: RENT CALCULATION Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.850 – Public and Indian Housing CRITERIA For both family income examinations and reexamination, obtain and document in the family file third-party verification of (1) reported family annual income (2) the value of assets (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR Section 960.259). Determine income eligibility and calculate the tenant’s rent payment using the documentation from third-party verification in accordance with 24 CFR Part 5 subpart F (24 CFR section 5.601 et seq.) (24CFR sections 960.253, 960.255, 960.259). CONDITION As a result of our procedures, we identified the following exceptions in our testing:  Fourteen (14) instances of income, asset or medical miscalculations or insufficient verification  Twelve (12) instances of untimely reexamination CAUSE The Authority’s system of internal controls over the participant recertification process was not sufficient to meet the requirements established by HUD. EFFECT Redetermination of tenant’s rent was not performed in accordance with HUD regulations. As a result, tenants may have paid more or less in rent than they should have paid. QUESTIONED COSTS None noted CONTEXT We selected a sample of 40 from a population of 153. This was not a statistically valid sample. REPEAT FINDING See finding 2023-003. RECOMMENDATION We recommend that the Authority develop and implement a recertification checklist to accompany the tenant file to ensure all required documentation is obtained.

Finding 2024-002

2024-002 –PROCUREMENT AND SUSPENSION AND DEBARMENT Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.850 – Public and Indian Housing CRITERIA Any contract not exceeding $20,000 for construction or public improvements and $25,000 for goods or services may be made in accordance with the small purchase procedures. Contract requirements shall not be artificially divided so as to constitute a small purchase. For small purchases over $2,000, but not greater than $20,000 for construction or public improvements and $25,000 for goods or services no less than three offerors shall be solicited to submit price quotations. (Pittsfield Housing Authority Procurement Policy) CONDITION We examined a sample of 4 vendors used for goods and services during fiscal year 2024 and identified 3 instances where the Authority did not follow their procurement policy or did not retain sufficient supporting documentation. CAUSE The Authority’s internal control over procurement was not effective at identifying the need for competitive procurement. EFFECT The Authority has not ensured that it is receiving the most competitive prices or rates for services that have been procured, which may have resulted in unnecessary additional costs to the Authority. QUESTIONED COSTS Estimated questioned costs of $464,450 representing the total payments to 3 vendors. CONTEXT We selected a sample of 4 from a population of 35 vendors paid in excess of the micro-purchase threshold. This was not a statistically valid sample. REPEAT FINDING See finding 2023-004. RECOMMENDATION We recommend that the Authority improve its monitoring of contracts and periodically assess the procurement implications of cumulative payments to frequently used vendors. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.

Finding 2024-001

2024-001 –ELIGIBILITY: RENT CALCULATION Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.850 – Public and Indian Housing CRITERIA For both family income examinations and reexamination, obtain and document in the family file third-party verification of (1) reported family annual income (2) the value of assets (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR Section 960.259). Determine income eligibility and calculate the tenant’s rent payment using the documentation from third-party verification in accordance with 24 CFR Part 5 subpart F (24 CFR section 5.601 et seq.) (24CFR sections 960.253, 960.255, 960.259). CONDITION As a result of our procedures, we identified the following exceptions in our testing:  Fourteen (14) instances of income, asset or medical miscalculations or insufficient verification  Twelve (12) instances of untimely reexamination CAUSE The Authority’s system of internal controls over the participant recertification process was not sufficient to meet the requirements established by HUD. EFFECT Redetermination of tenant’s rent was not performed in accordance with HUD regulations. As a result, tenants may have paid more or less in rent than they should have paid. QUESTIONED COSTS None noted CONTEXT We selected a sample of 40 from a population of 153. This was not a statistically valid sample. REPEAT FINDING See finding 2023-003. RECOMMENDATION We recommend that the Authority develop and implement a recertification checklist to accompany the tenant file to ensure all required documentation is obtained.

Finding 2024-002

2024-002 –PROCUREMENT AND SUSPENSION AND DEBARMENT Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.850 – Public and Indian Housing CRITERIA Any contract not exceeding $20,000 for construction or public improvements and $25,000 for goods or services may be made in accordance with the small purchase procedures. Contract requirements shall not be artificially divided so as to constitute a small purchase. For small purchases over $2,000, but not greater than $20,000 for construction or public improvements and $25,000 for goods or services no less than three offerors shall be solicited to submit price quotations. (Pittsfield Housing Authority Procurement Policy) CONDITION We examined a sample of 4 vendors used for goods and services during fiscal year 2024 and identified 3 instances where the Authority did not follow their procurement policy or did not retain sufficient supporting documentation. CAUSE The Authority’s internal control over procurement was not effective at identifying the need for competitive procurement. EFFECT The Authority has not ensured that it is receiving the most competitive prices or rates for services that have been procured, which may have resulted in unnecessary additional costs to the Authority. QUESTIONED COSTS Estimated questioned costs of $464,450 representing the total payments to 3 vendors. CONTEXT We selected a sample of 4 from a population of 35 vendors paid in excess of the micro-purchase threshold. This was not a statistically valid sample. REPEAT FINDING See finding 2023-004. RECOMMENDATION We recommend that the Authority improve its monitoring of contracts and periodically assess the procurement implications of cumulative payments to frequently used vendors. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.