FAC Explorer

Audit 350123

FY End
2024-06-30
Total Expended
$13.28M
Findings
4
Programs
7
Organization: Housing Authority of the City of Annapolis (MD)
Year: 2024 Accepted: 2025-03-28
Auditor: Rubino & Company Chartered

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
539577 2024-001 Significant Deficiency - E
539578 2024-002 Significant Deficiency - P
1116019 2024-001 Significant Deficiency - E
1116020 2024-002 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $7.44M - 0
14.872 Public Housing Capital Fund $2.79M Yes 0
14.850 Public Housing Operating Fund $2.70M Yes 2
14.892 Choice Neighborhoods Planning Grants $140,000 - 0
14.218 Community Development Block Grants/entitlement Grants $75,000 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $74,540 - 0
14.896 Family Self-Sufficiency Program $65,445 - 0

Contacts

Name Title Type
CCWTQZMSKTT4 Melissa Maddox-Evans Auditee
4102678000 Allan Kitchen Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1. BASIS OF PRESENTATION Accounting Policies: NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: NOTE 4. INDIRECT COST RATE The Authority has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Housing Authority of the City of Annapolis (the Authority) under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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.
Title: NOTE 3. SUBRECIPIENTS Accounting Policies: NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: NOTE 4. INDIRECT COST RATE The Authority has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Authority did not pass through any federal awards to subrecipients during the year ended June 30, 2024.

Finding Details

Finding 2024-001
Finding 2024-001: Missing Tenant Information (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Public and Indian Housing Federal Assistance Listing Number: 14.850 Compliance Requirement: Eligibility Criteria: Per 2 CFR, PHAs are required to obtain and document third party verification of reported family annual income, eligibility documentation for verification of citizenship and/or legal residency, and signed release forms. Condition: The Authority was unable to locate income verification documentation, citizenship and/or legal residency documentation, signed release forms, as well as reported the incorrect income amount on the Family Report. Context: Out of the 40 tenant files reviewed for income verification, 15 did not have citizenship and/or legal residency documentation, 15 did not have complete signed release forms, 2 did not have proper documentation of income, and 1 income calculation was incorrect. Effect: The Authority did not have the proper information necessary to validate compliance with eligibility requirements. Cause: The Authority did not have the proper controls in place to ensure documentation and calculations of income were correct. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the recertifications include the correct income amount and is adequately retained in the Authority’s files. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2024-002
Finding 2024-002: Missing Unit Inspections (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Public and Indian Housing Federal Assistance Listing Number: 14.850 Compliance Requirement: Special Tests and Provisions Criteria: Per 2 CFR, the Authority is required to ensure the units subsidized by HUD are safe and sanitary. Per the Authority’s internal policies and procedures, an annual inspection is required for each unit. Condition: The Authority did not inspect each unit at least once during a 12-month period. Context: Out of the 40 units selected for testing, 8 of them did not have an inspection performed during the 12-month period and 3 did not have inspections performed at all. Effect: The Authority did not comply with its internal requirements to comply with 2 CFR. Cause: The Authority did not have the proper controls in place to ensure the annual inspections were performed. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the annual inspections are performed and on time. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2024-001
Finding 2024-001: Missing Tenant Information (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Public and Indian Housing Federal Assistance Listing Number: 14.850 Compliance Requirement: Eligibility Criteria: Per 2 CFR, PHAs are required to obtain and document third party verification of reported family annual income, eligibility documentation for verification of citizenship and/or legal residency, and signed release forms. Condition: The Authority was unable to locate income verification documentation, citizenship and/or legal residency documentation, signed release forms, as well as reported the incorrect income amount on the Family Report. Context: Out of the 40 tenant files reviewed for income verification, 15 did not have citizenship and/or legal residency documentation, 15 did not have complete signed release forms, 2 did not have proper documentation of income, and 1 income calculation was incorrect. Effect: The Authority did not have the proper information necessary to validate compliance with eligibility requirements. Cause: The Authority did not have the proper controls in place to ensure documentation and calculations of income were correct. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the recertifications include the correct income amount and is adequately retained in the Authority’s files. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2024-002
Finding 2024-002: Missing Unit Inspections (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Public and Indian Housing Federal Assistance Listing Number: 14.850 Compliance Requirement: Special Tests and Provisions Criteria: Per 2 CFR, the Authority is required to ensure the units subsidized by HUD are safe and sanitary. Per the Authority’s internal policies and procedures, an annual inspection is required for each unit. Condition: The Authority did not inspect each unit at least once during a 12-month period. Context: Out of the 40 units selected for testing, 8 of them did not have an inspection performed during the 12-month period and 3 did not have inspections performed at all. Effect: The Authority did not comply with its internal requirements to comply with 2 CFR. Cause: The Authority did not have the proper controls in place to ensure the annual inspections were performed. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the annual inspections are performed and on time. Views of Responsible Officials: The Authority agrees with the finding.