FAC Explorer

Audit 351450

FY End
2024-03-31
Total Expended
$8.24M
Findings
4
Programs
4
Organization: Housing Authority of the City of Long Beach (NY)
Year: 2024 Accepted: 2025-03-31
Auditor: Rbt CPAS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
547098 2024-003 Significant Deficiency - EN
547099 2024-004 Significant Deficiency - N
1123540 2024-003 Significant Deficiency - EN
1123541 2024-004 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $5.41M Yes 2
14.850 Public Housing Operating Fund $1.03M - 0
14.872 Public Housing Capital Fund $927,210 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $868,742 Yes 0

Contacts

Name Title Type
KJ5MZKA9LYN3 Myrnissa Stone Auditee
5164312444 Danielle Youmans 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 Housing Authority of the City of Long Beach (the “Authority”) for the year ended March 31, 2024. 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 Housing Authority of the City of Long Beach (the “Authority”) for the year ended March 31, 2024. 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 Housing Authority of the City of Long Beach (the “Authority”) for the year ended March 31, 2024. 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: RECONCILIATION TO FINANCIAL STATEMENTS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the Housing Authority of the City of Long Beach (the “Authority”) for the year ended March 31, 2024. 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 Revenues, Expenses, and Changes in Net Position as follows:

Finding Details

Finding 2024-003
2024-003 – Documentation of Controls – Significant Deficiency U.S. Department of Housing and Urban Development 14.871 – Section 8 Housing Choice Vouchers E. Eligibility / N. Special Tests and Provisions Condition: During review of the Housing Choice Voucher (“HCV”) program, RBT noted that the Authority was not appropriately maintaining documentation of the 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 (such as 24 CFR Section 982), 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 40 tenant files selected for testing contained documentation of the internal controls performed. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the Authority maintain the checklist that the Tenant Housing Representatives use during the recertification process to ensure all compliance requirements are met. The checklist should be signed or initialed by the representative 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.
Finding 2024-004
2024-004 – HCV Administrative Plan / Waiting List Procedures / Utility Allowance Schedule – Significant Deficiency and Compliance Finding U.S. Department of Housing and Urban Development 14.871 – Section 8 Housing Choice Vouchers N1. Selection from Waiting List / N3. Utility Allowance Schedule Condition: During review of the Housing Choice Voucher program, RBT noted that the Authority does not have a Housing Choice Voucher program Administrative Plan in place to outline policies and procedures for waiting list selection and updating utility category rates annually. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, including 24 CFR Section 982.54, which requires PHAs to adopt a written Administrative Plan, and 24 CFR Section 982.517, which requires PHAs to maintain a Utility Allowance Schedule. Cause: The Authority does not have a policy in place to select HCV participants from the waitlist in accordance with its Wait List and Admissions and Special Admissions policies outlined in the Administrative Plan. Staff is unfamiliar with waitlist preferences and policies. The Authority also does not have a policy in place to conduct an annual review to confirm that individual (category) utility rates have not changed 10% or more since the last utility allowance update or to revise the allowance if a change of 10% or more has occurred. Effect: Potential loss of funding due to noncompliance. Questioned Costs: None identified. Perspective: One of one tenants admitted to the HCV program selected for testing was not in compliance based on a lack of Administrative Plan in place to ensure waiting list selection procedures were followed. Forty of the forty tenant files selected for testing were not in compliance based on the lack of a policy in place to conduct an annual review to confirm utility rates have not changed 10% or more. Repeat finding: Not a repeat finding. Recommendation: RBT recommends that the Authority establish a Housing Choice Voucher program Administrative Plan to outline the policies and procedures of the program requirements including, but not limited to, waiting list selection procedures and utility allowance annual reviews. Auditee’s Response: See corrective action plan.
Finding 2024-003
2024-003 – Documentation of Controls – Significant Deficiency U.S. Department of Housing and Urban Development 14.871 – Section 8 Housing Choice Vouchers E. Eligibility / N. Special Tests and Provisions Condition: During review of the Housing Choice Voucher (“HCV”) program, RBT noted that the Authority was not appropriately maintaining documentation of the 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 (such as 24 CFR Section 982), 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 40 tenant files selected for testing contained documentation of the internal controls performed. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the Authority maintain the checklist that the Tenant Housing Representatives use during the recertification process to ensure all compliance requirements are met. The checklist should be signed or initialed by the representative 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.
Finding 2024-004
2024-004 – HCV Administrative Plan / Waiting List Procedures / Utility Allowance Schedule – Significant Deficiency and Compliance Finding U.S. Department of Housing and Urban Development 14.871 – Section 8 Housing Choice Vouchers N1. Selection from Waiting List / N3. Utility Allowance Schedule Condition: During review of the Housing Choice Voucher program, RBT noted that the Authority does not have a Housing Choice Voucher program Administrative Plan in place to outline policies and procedures for waiting list selection and updating utility category rates annually. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, including 24 CFR Section 982.54, which requires PHAs to adopt a written Administrative Plan, and 24 CFR Section 982.517, which requires PHAs to maintain a Utility Allowance Schedule. Cause: The Authority does not have a policy in place to select HCV participants from the waitlist in accordance with its Wait List and Admissions and Special Admissions policies outlined in the Administrative Plan. Staff is unfamiliar with waitlist preferences and policies. The Authority also does not have a policy in place to conduct an annual review to confirm that individual (category) utility rates have not changed 10% or more since the last utility allowance update or to revise the allowance if a change of 10% or more has occurred. Effect: Potential loss of funding due to noncompliance. Questioned Costs: None identified. Perspective: One of one tenants admitted to the HCV program selected for testing was not in compliance based on a lack of Administrative Plan in place to ensure waiting list selection procedures were followed. Forty of the forty tenant files selected for testing were not in compliance based on the lack of a policy in place to conduct an annual review to confirm utility rates have not changed 10% or more. Repeat finding: Not a repeat finding. Recommendation: RBT recommends that the Authority establish a Housing Choice Voucher program Administrative Plan to outline the policies and procedures of the program requirements including, but not limited to, waiting list selection procedures and utility allowance annual reviews. Auditee’s Response: See corrective action plan.