FAC Explorer

Audit 348917

FY End
2024-06-30
Total Expended
$12.88M
Findings
4
Programs
7
Organization: Cumberland County Housing Authority (PA)
Year: 2024 Accepted: 2025-03-27
Auditor: Smco

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
537638 2024-003 Significant Deficiency Yes N
537639 2024-004 Significant Deficiency - N
1114080 2024-003 Significant Deficiency Yes N
1114081 2024-004 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $10.23M Yes 2
14.850 Public Housing Operating Fund $990,165 - 0
14.267 Continuum of Care Program $626,127 - 0
21.023 Emergency Rental Assistance Program $463,552 - 0
14.872 Public Housing Capital Fund $357,861 - 0
14.238 Shelter Plus Care $210,151 - 0
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $1,385 - 0

Contacts

Name Title Type
L4MAGUSXFWD1 Kira Kessler Auditee
7172490789 Chad Porter Auditor
No contacts on file

Notes to SEFA

Title: NOTE 01 - SCOPE OF PRESENTATION Accounting Policies: The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of the County of Cumberland (the Authority) that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal or state reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. 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. The information in this schedule is presented in accordance with the requirements of Uniform Guidance, Audit of States, Local Governments, and Non-Profit Organizations. 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 elected not 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 Housing Authority of the County of Cumberland (the Authority) that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal or state reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule.
Title: NOTE 02 - BASIS OF ACCOUNTING Accounting Policies: The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of the County of Cumberland (the Authority) that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal or state reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. 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. The information in this schedule is presented in accordance with the requirements of Uniform Guidance, Audit of States, Local Governments, and Non-Profit Organizations. 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 elected not 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. The information in this schedule is presented in accordance with the requirements of Uniform Guidance, Audit of States, Local Governments, and Non-Profit Organizations. 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 03 - SUBRECIPIENTS Accounting Policies: The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of the County of Cumberland (the Authority) that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal or state reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. 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. The information in this schedule is presented in accordance with the requirements of Uniform Guidance, Audit of States, Local Governments, and Non-Profit Organizations. 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 elected not to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414. During the fiscal year ended June 30, 2024, the Authority disbursed no Federal funds to subrecipients.
Title: NOTE 04 - INDIRECT COST RATE Accounting Policies: The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of the County of Cumberland (the Authority) that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal or state reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. 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. The information in this schedule is presented in accordance with the requirements of Uniform Guidance, Audit of States, Local Governments, and Non-Profit Organizations. 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 elected not to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414. The Authority elected not to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414.

Finding Details

Finding 2024-003
Program Name Housing Choice Voucher "Internal Control" Significant Deficiency N Special Test and Provisions ALN 14.871 2024-003 Housing Quality Standards Inspection/HQS Enforcement (Repeat Finding Original 2023-003) Questioned Costs None 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 our audit, we identified four (2) failed HQS with life-threating failes that did not receive a pass within the required 24 hour time frame. Context The HQS population was 135 failed inspection. We selected a sample of 15 inspection and identified of those 15 reviewed 2 did not obtain a re-inspection pass within the Criteria noted above and no rent abetment process was enforce on landlord. Cause The Authority staff did not want to jeopardize the tenants lease by enforcing the rent abatements and rather worked with the landlord over an extend period to resolve the failed inspection issues. Effect The Authority is non‐compliant with the federal regulations over this federal program, this could potentially result in operating and financial penalties. Recommendations We suggest the Authority properly oversee compliance with regulations and enforce rent abatements if necessary to adherence to federal compliance requirements. Management Views Management agrees with the finding, see management's corrective action plan.
Finding 2024-004
Program Name Housing Choice Voucher Internal Control Significant Deficiency N Special Test and Provisions ALN 14.871 2023-004 Utilities Allowance Calcuation Questioned Costs None 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 reexamination, provided that the PHA is able to provide a family with at least 60 days' notice prior to the reexamination. " Condition During the audit, we noted two (2) HUD Forms 50058 had utility allowances calculated not in accordance with the above criteria. Context The Authority had roughly 120 vouchers issued throughout the fiscal year under examination which would translate to 1,400 housing assistance payment transactions for the year. Of these we reviewed 40 individual housing assistance payment transactions, and found 2 instances of noncompliance. 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 with the finding, see management's corrective action plan.
Finding 2024-003
Program Name Housing Choice Voucher "Internal Control" Significant Deficiency N Special Test and Provisions ALN 14.871 2024-003 Housing Quality Standards Inspection/HQS Enforcement (Repeat Finding Original 2023-003) Questioned Costs None 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 our audit, we identified four (2) failed HQS with life-threating failes that did not receive a pass within the required 24 hour time frame. Context The HQS population was 135 failed inspection. We selected a sample of 15 inspection and identified of those 15 reviewed 2 did not obtain a re-inspection pass within the Criteria noted above and no rent abetment process was enforce on landlord. Cause The Authority staff did not want to jeopardize the tenants lease by enforcing the rent abatements and rather worked with the landlord over an extend period to resolve the failed inspection issues. Effect The Authority is non‐compliant with the federal regulations over this federal program, this could potentially result in operating and financial penalties. Recommendations We suggest the Authority properly oversee compliance with regulations and enforce rent abatements if necessary to adherence to federal compliance requirements. Management Views Management agrees with the finding, see management's corrective action plan.
Finding 2024-004
Program Name Housing Choice Voucher Internal Control Significant Deficiency N Special Test and Provisions ALN 14.871 2023-004 Utilities Allowance Calcuation Questioned Costs None 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 reexamination, provided that the PHA is able to provide a family with at least 60 days' notice prior to the reexamination. " Condition During the audit, we noted two (2) HUD Forms 50058 had utility allowances calculated not in accordance with the above criteria. Context The Authority had roughly 120 vouchers issued throughout the fiscal year under examination which would translate to 1,400 housing assistance payment transactions for the year. Of these we reviewed 40 individual housing assistance payment transactions, and found 2 instances of noncompliance. 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 with the finding, see management's corrective action plan.